Will the property tax of the residents in the city decrease since there are no longer many schools in the district for the taxes to support
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Will the property tax of the residents in the city decrease since there are no longer many schools in the district for the taxes to support
No, there won't be that much in the way of savings because there won't be a proportional reduction in the hierarchy at DPS headquarters.Quote:
Originally Posted by stasu1213
Don't forget to take into account the decrease in population. As the number of property taxpayers decreases, the burden on remaining taxpayers increases. Bobb is trying to decrease the number of schools in proportion to the decrease in number of students.
...besides, when have the taxes actually decreased? :[[
When property valuations are absurd and often equal 100% of the market value of the property no one will buy and they become abandoned and decayed. Dumb policy its better to get some revenue and some fix up -than nothing. Texas is thriving and it uses the last sale as market value in almost all cases.
I assume you mean that "taxes" often equal 100% of the market value of the property, although I don't see that very often. Texas may be thriving, but I don't really think it is because of their system of property tax assessment. On the other hand, it is certainly true that lots of property in Detroit is over-assessed.Quote:
When property valuations are absurd and often equal 100% of the market value of the property no one will buy and they become abandoned and decayed. Dumb policy its better to get some revenue and some fix up -than nothing. Texas is thriving and it uses the last sale as market value in almost all cases.
Ohio also bases taxes on the last sale, and this results in more homes being bought and renovated, as well as lower rates for rentals. Toledo is extremely economically depressed, but only has 2,000 abandoned homes in a city of 300,000, vs 12,000 in a city of probably 750,000. Unless you have no kids, have an address in the suburbs to use for car insurance, and don't mind paying ridiculously high taxes for poor services, living in Detroit these days doesn't make very much sense financially.Quote:
Originally Posted by mwilbert
Mwilbert you are probably correct in the 100% of market - because the houses/buildings I check are usually the abandoned ones and not indicative of the overall rate.
Having said that I am absolutely sure - that buyers are discouraged by seeing tax rates even 30% of market value. Milesdriven is correct -last sale as long as it is arm's length as they say should determine assessment.
I think the biggest problem is that when assessing property the city excludes too many properties as comparable. If a large proportion of the sales in a neighborhood are foreclosures and auctions, excluding foreclosures from the base of comparables is not legitimate. I don't understand the justification for this--these are real sales and real data which should be inputs to any legitimate valuation model.