States Could Face New Shortfalls as Homeowners Beg for Lower Taxes

Andrew Jeffery  Jul 06, 2009 2:35 pm

States Could Face New Shortfalls as Homeowners Beg for Lower Taxes
 
The next round of bailouts could be just around the corner.
 

 
When the value of your house starts heading to south, there isn't a lot to be thankful for. Some homeowners, however, are looking for a silver lining.

The New York Times reports that homeowners across the country are petitioning state and local governments for lower property tax bills. The timing couldn't be worse for municipalities, many of which are already facing a cash crunch. In California, the state has begun issuing IOUs to contractors and other creditors. Some states, like New Jersey, have increased property taxes in an attempt to prop up revenue -- much to the chagrin of its homeowners.

As property values fall, homeowners face bills that can far outweigh what they would owe should the taxman keep his records in real time. This doesn't sit well with most citizens -- many of whom are already behind on mortgage payments and struggling to make ends meet.

Property taxes are assessed using myriad formulas and reassessment schedules, such that predicting exactly how much you'll owe each year can be nightmarishly complex. Historically, as home prices rose, periodic reassessments benefited homeowners, since the tax assessed value of most properties lagged their true value.
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Comments (5) See All Comments »
07-06-2009, 5:36 pm
At least for us, we may protest our assessments for NEXT YEAR, however the tax rate will be set this month for THIS YEAR.

and while the TOTAL ASSESSMENTS are down and will continue downward, our city/county FATHERS only know how to spend
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07-06-2009, 9:33 pm
What do you mean CA can't run a deficit? But IOUs rather allege that recipients should expect those bills to be paid eventually in real money.

Maybe Arnie can blame it on his accent and just send everybody an Idaho Ewe in a few w
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07-07-2009, 3:05 am
Andrew:
I know the game in California on challenging the assessment. If you are successful and get it reduced let's say 30 percent don't think for a minute that 1% increase to be the rule going forward. As soon as the sales models ind
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07-07-2009, 12:04 pm
Robert,

Check out my piece today (not published as of yet), I engage in some creative speculation along the same lines you discuss....

Appreciate the input

Andrew
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07-07-2009, 5:47 pm
Evidenced by the past, the Assessor's office may not be able to reduce every property that is eligible for a reduction, Sometimes when they do reduce property taxes, it isn't enough. The Property Tax Assessment Adjusters (ptaaonline.com)
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