How can property taxes be going up while values are decreasing?

Ŀëммϊ 😉 ωϊηκﯤ: How can property taxes be going up while values are decreasing?
We are buying a home. I checked the property on a title company website, and in 2007 the home’s taxes were at $ 800. In 2008 the taxes were $ 1000. How can the government charge more in taxes when home values are in decline?

Answers and Views:

Answer by Your Y!A BFF
They go up pretty much every single year! It is based on the town you live in, too, and they need more money for roads, sidewalks, garbage workers (if that’s included in your taxes,) They probably gave the mayor a big raise. Hehe that’s why I rent ho!

Answer by Ralph
Mine just went up; this is the reason they gave.

The property taxes were based on values derived from sales during the periods one and two years prior. After all, they had to be able to examine the sales, and they can’t count what happened yesterday.

Remember that home prices were at historic highs before they crashed.

It’s likely that at least part of the “base period” for estimating the value of the home was during that boom time.

It is also possible that, after you buy the house, if you paid less than the assessed value, you can request a reevaluation.

Now, to the renter–Where do you think your landlord gets the money to pay the property taxes?

Answer by jlf
Because the cost of local government services does not decline with real estate prices. While the assessed value may decline, the tax RATE will increase to compensate.

Answer by Ken M
The cost of running your city has no relation to your home price.

Answer by acermill
It’s simple. Property taxes are not based upon the home’s value, other than as a reference point to insure that taxes collected are apportioned equitably. Understand that municipalities have operating budgets which must be met. If the home’s value falls, they will simply charge more per thousand dollars of assessed value.

Answer by Donna S
Everytime you VOTE for or against a tax increase you will have higher property taxes. With home values lower they will push for high rates so the city you live in will continue to have the same revenue coming in.

Renters, why do you think your rent increases? Higher property taxes!
So next time you vote yes for a property tax do not think it will not effect you because you do not own a home.

Answer by soulburner
because they can do whatever the hell they want.

Answer by Dan
The amount of property tax has little to do with the value of the house, as the taxing authority can raise taxes to meet its money spent. The power to tax, once given, has no limits. Renters also pay taxes, as rental property is taxed at higher levels by most governments, and the taxes are paid from rents received by landlords.

Whenever government’s costs are increased a way must be found to make up for the increases, and that is usually done by an increase in taxes rather than new taxes because normally there is a mechanism to increase a millage rate whenever necessary, so a vote may not be necessary by the constituents.

Regards,
Dan

Answer by Curtains
The government is struggling because sales taxes are down so they try to get revenue through other sources.