As If On Cue, More on Property Taxes

Leaving the grocery store this morning, I happened to glance at the cover of the Boston Globe and see this story about property taxes rising despite falling home values.  Eureka! It’s almost like I just wrote about that subject on Wednesday!  I don’t think the point needs to be belabored – it’s a pretty simple concept, yet one worth making again.  The opening line of the Globe article is:
“Despite dropping home values, Massachusetts property tax bills continued to rise last year.”
Again – property taxes need to be proportioned to town spending.  Many of us have been somehow conditioned to think about property taxes as a percentage of our home value – but that’s an irrelevant benchmark.  The amount of revenue the town needs to collect is not a function of the paper value of all the homes in town – it’s a function of how much the town spends.
If you want lower taxes, you need lower spending.  Lower home values do not, and should not imply lower taxes.
-KD

Kid Dynamite is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. If you click on my Amazon.com links and buy anything, even something other than the product advertised, I earn a small commission, yet you don't pay any extra. Thank you for your support.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Kiddynamitesworld Blog