SunsetSail
Recycles dryer sheets
- Joined
- Jul 28, 2010
- Messages
- 255
Samclean... it is not a given that the gvmts bring in more income with higher property values... they are supposed to figure out their budget and then establish a tax rate.. I am not in Houston, but IIRC they dropped their rate a few times before the crisis since property values had increased... the problem is with the vast majority that do see the extra income as money that needs spending...
Although this statement is true in most states, it is not in California. California property tax rates generally are fixed at 1% plus any pre-prop 13 special assessment amounts that are usually a small fraction of a %. There may be local voter approved additional assessments that are recalculated each year based on the $ needed to service specific debt. However, there is no annually adjusting rate based on total assessed value on the rolls as is common elsewhere. Mello roos are not strictly property taxes but special arrangements with local government (sometimes they are federally deductible other times not).
In California local governments (ultimately) do bring in extra $ as values rise. If you google local newspapers you can see headlines about public schools cutting back school year length and other services because the school districts assumed that school funding generated by high property values were here to stay...in school districts outside of LAUSD they seemed to manage just fine on pre-bubble revenues but now the reduction is a crisis. It is telling as to whether this is a spending problem or a revenue problem.