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It’s annoying that articles repeatedly wrongly claim that reduced real estate prices lead to reduced real estate taxes. The method of computation of real estate
by TimPC 4y ago
It’s annoying that articles repeatedly wrongly claim that reduced real estate prices lead to reduced real estate taxes. The method of computation of real estate taxes generates a mil rate which is the percentage rate that needs to be charged to generate the current budget’s revenue. This rate is computed each assessment after the property values are adjusted. The government gets the same total amount of money if property values are high vs if they are low.
- kodyo 4y agoThat's not true, at least not everywhere. My property taxes always go up when my property values are adjusted upwards.
- yardie 4y agoIt doesn't disagree with the OP. If the budget has not changed your millage rate should have gone down even if your property value goes up. Most likely your city hall did not adjust the millage rate down and used the extra assessment to pay down debt. In my own city even though my millage rate is going down because of new developments going up it's being offset by values going up.
- TimPC 4y agoUsually this means your property grew in value faster than the rest of the city so you now pay for a higher total percentage of the cities budget. This has happened to me too. Roughly speaking if the mill rate falls from 1.0% to 0.9% but your property went from $1 million to $1.2 million you now pay $10,800 instead of $10,000. But the rise in property prices still caused the mill rate to go down.