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alstry (36.08)

Crashing Home Value...Rising Rising Property Tax

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September 07, 2009 – Comments (4)

The following is a true story from Velusia County, Florida....where Dayona Beach is located.

A close personal friend just got his tax statement and was shocked when he reviewed it.

The appraised market value of his home dropped from over $1.5 Million to $1.15 million or a decrease in market value of approximately $400K.  One would expect with such a sharp drop in home value the property taxes would drop as about 20-30%.

Not even close....the property tax increased from slightly over $12K to almost $14K.  Simply to generate the same budget as last year, the city property taxes alone increased 23%.....23%!!!!!

In a letter the county property appraiser wrote the following to residents:

I fear many homeowners do not realize the danger this poses to family wallets this year.

County and City Council members, School Board members....are the sole legal authority to hold budget hearings and decide "what taxes will be."  That is why they are called 'Taxing Authorities."

...throughout the "bubble and bust" real estate market, most taxing authority spending (levies) far exceeded increases in the personal income of Volusia's property owners.

It is refreshing to hear a public official be so candid......

Many of the residents of Volusia County have actually seen their incomes decline substantially over the past few years as the tourist business and other businesses in Daytona declined materially.

America is in crisis...not because of health care reform or whether our President wants to speak to our children.  Our nation is in crisis because the bankers have cut off credit and money is evaporating.  There is no money of health care as our government is running a $2 Trillion dollar deficit.  Instead of making it easier on the citizens and businesses, bankers and government are squeezing the taxpayers for more and more until they can no longer afford to pay and are Zombulated.

If this continues much longer...the nation will be broke.  Every time property taxes on a house increases $1000, it decreases the affordibility about $15 to $20K.  Imagine the economic impact on an entire neighborhood, city or county.

By tightening credit, raising interest rates, and raising taxes....Americans are left with less and less.  Sales to our businesses are contracting and job losses and wage cuts are spiraling upwards.  The combination of tighter credit, higher taxes and fewer jobs is gutting our nation's economy.....if we don't stop the Zombulator, it will not be long before we have no economy left.

Each day Benny Bin Laden lets bailed out bankers squeeze the citizens and businesses of America tighter and tighter, it is another day Benny B is an accomplice to economic terrorism towards our nation.

 

 

4 Comments – Post Your Own

#1) On September 07, 2009 at 11:52 PM, starbucks4ever (94.15) wrote:

$14K is a ridiculously low tax for a $1.15M house. Should be at least $50K. It's becuase of these obscenely low tax rates that we have budget problems to begin with.

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#2) On September 08, 2009 at 12:08 AM, russiangambit (29.38) wrote:

Yep, the property tax is too low. I pay the same 14K tax on 400K house in Texas.

However, California has all kinds of other taxes that Texas doesn't have. High property tax is a double-edged sword, though. I personally hate it because you have to keep paying it on the same asset over and over vs. with sales tax or income tax you pay it only once. On the other hand, high property tax is what prevented housing bubble in Texas.

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#3) On September 08, 2009 at 9:00 AM, alstry (36.08) wrote:

Russian,

I am not exact sure about the particulars of Florida...whether it has a grandfather provison for those who remain in their homes....etc.

However, what I do know is Florida hurricane insurance is much higher than Texas...but that is not really the point.

It is the fact that home prices are falling and taxes are going up.  Home prices are falling because affordibility is getting more difficult for most Americans.

This is due to a number of factors, but the primary factor is incomes are crashing through job loss and wage cut.  If wages are falling and costs are rising, than the future or our nation is dire indeed as more and more will not beable to service their debt.

This particular home is fully paid for...however, there are a number of elderly in Florida that, even though their home is fully paid, they can no longer meet the rising cost of health care, property taxes, and insurance.

Most Americans live on the edge...and since we as a nation must deal with most Americans...the burden on society will be enormous...one that the society can no longer afford as currently operated.

You will get a clearer picture in the next few weeks as any illusion for a recovery will be long gone......

The question now is what will the new system be....you can only run multi trillion dollar deficits for so long before the deficit runs you.

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#4) On September 10, 2009 at 1:49 PM, jason2713 (< 20) wrote:

Baltimore city's property taxes is 2.xx%

That's nearly double that of the county.

Guess where I'm moving after I foreclose.

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