Property Taxes Are Going Up

Well, not necessarily everywhere, but cash-strapped local governments across the country seem to be pushing significant property tax increases at a record pace.

This is particularly damaging to homeowners whose homes have lost significant value during the past two years (in some places by 20 to 30 percent, according to the Case-Schiller Index) but have not yet been reassessed.

In other words, a home that was worth $200,000 when it was last assessed might now be worth only $140,000. Not only are the existing homeowners paying property taxes on a property with an assessed value higher than the market would bear, but they are also due for a tax increase. Again, however, people only seem to clamor for reassessments when their homes have declined in value — not when they have appreciated (see David’s op-ed for some thoughts on Missouri’s rollback provisions).

The Wall Street Journal has a nice little image detailing median property taxes across the country.