If home values are going down, will RE taxes go down? (Mount Pleasant: real estate, 2010)

[Maryjane55us]

If home values are dropping dismally, will the tax evaluations go down eventually too?

I keep wondering about this. If you play fair in this real estate deflation scenerio, then they would have to decrease also, wouldn't they?

Then the local gov'ts will get less income...

How do you think this is all going play out down the road?

[NS_Highlander]

Counties and municipalities still have to pay for services and debts. In cities where the home values tend to be less, the tax percentage rates seems to be higher. Don't kid yourself, the Goverment always gets its money!

[OleTomCat]

The Tax value may go down at the next assessment, normally five years, but to maintain tax income the government will just raise the millage.

[Flat2MT]

Originally Posted by NS_Highlander

Counties and municipalities still have to pay for services and debts. In cities where the home values tend to be less, the tax percentage rates seems to be higher. Don't kid yourself, the Goverment always gets its money!

They sure do.

They'll just 'reduce' the assessed value while increasing the mil rate. Or vice versa.

Either way, it's a wash.

And I doubt they will decide to cut spending to make up for the revenue shortfalls....now that's a concept!

[NS_Highlander]

Originally Posted by Flat2MT

They sure do.

They'll just 'reduce' the assessed value while increasing the mil rate. Or vice versa.

Either way, it's a wash.

And I doubt they will decide to cut spending to make up for the revenue shortfalls....now that's a concept!

Like anything there is cutting costs and cutting corners. I don't mind money being spent if it is a good value. Certian dollars spent don't cost, but pay. A good recycling program pays. If you let the roads fall apart, it will cost more to fix than maintain.

One problem I have from Summerville is that the town doesn't have a good Recreation department, if it even has one at all. Yes I save on the taxes, but when kids from poor neighbourhoods that don't have a pool come into my neighbourhood to use the pool the HOA is paying for and they cause problems because they are bored, saving taxes dosen't help me if my property value goes down and less desirable neighbours start moving in. Also, if the kids get locked up in a state institution it isn't going to help my state tax rates there either. Actually, I think it is more money to lock the brats up than it is to keep them out of trouble in the first place. On top of that, society dosen't need any more victims. On ounce of prevention is worth a pound of cure.

I am against fiscal deficits, but social and infastructure deficts don't make things any better!

[Flat2MT]

Originally Posted by NS_Highlander

Like anything there is cutting costs and cutting corners. I don't mind money being spent if it is a good value. Certian dollars spent don't cost, but pay. A good recycling program pays. If you let the roads fall apart, it will cost more to fix than maintain.

One problem I have from Summerville is that the town doesn't have a good Recreation department, if it even has one at all. Yes I save on the taxes, but when kids from poor neighbourhoods that don't have a pool come into my neighbourhood to use the pool the HOA is paying for and they cause problems because they are bored, saving taxes dosen't help me if my property value goes down and less desirable neighbours start moving in. Also, if the kids get locked up in a state institution it isn't going to help my state tax rates there either. Actually, I think it is more money to lock the brats up than it is to keep them out of trouble in the first place. On top of that, society dosen't need any more victims. On ounce of prevention is worth a pound of cure.

I am against fiscal deficits, but social and infastructure deficts don't make things any better!

I don't see local governments cutting costs or cutting corners. All I see is all of our taxes - federal, state and local - going up to cover funding shortfalls in the near term.

And we know that once taxes are raised, a new baseline is established....

[USCJoe]

The town of Mt. Pleasant is taking steps to address the anticipated shortfall of revenue due to current economic conditions.



According to an article in The Post and Courier Newspaper, the town of Mt. Pleasant is considering a 2009 property tax increase.

The first property tax hike in more than a decade might be necessary next year to avoid cutting services and to keep the town in good financial shape, Mount Pleasant Administrator Mac Burdette said Thursday.
Burdette said that either a 6.7 percent property tax rate increase or a South Carolina Electric & Gas franchise fee increase, to 5 percent, is needed to offset projected declining revenue in fiscal year 2009-2010, which begins next July 1. The town last raised property taxes 16 years ago.
"Just because Mac presents it doesn't mean we're going to approve it. Council has not approved any of that stuff," said Councilman Billy Swails.

Meanwhile, the town is taking steps to cut expenses. Burdette is eliminating 40 staff positions through attrition. The town employs more than 500 people. Beginning next July, workers will be asked to absorb more of the cost of health care to save $250,000 annually. Annual pay increases will be cut in half. Eliminating 25 positions by July 1, 2009, will save $1.2 million. Cutting another 15 positions by July 1, 2010 will save $700,000, he said.
If approved for fiscal 2009-2010, the higher tax rate would add $40 to the annual tax bill for a $400,000 home. The increased franchise fee would add $4 to a $200 monthly electric bill. Either of the measures would generate about $1 million more in town revenue, he said.
The economic engine that drove town development at such a rapid pace has sputtered. "We've had an incredible run on growth," he said. He forecasts that the next two to three years will be lean ones for the town budget. The economic slowdown has already hit the town hard. It issued 700 residential building permits in 2005, the maximum allowed under a building permit cap instituted to control double-digit growth. It expects to issue about 200 residential building permits this fiscal year, he said.
Burdette advocates that the town aggressively encourage investment in the community to increase revenue. To that end, it has established an Office of Community Development and Tourism that will be administered by current staffers. "Growth is not a bad word. It's how you manage it and how you do it," he said.

Originally Posted by Flat2MT

I don't see local governments cutting costs or cutting corners. All I see is all of our taxes - federal, state and local - going up to cover funding shortfalls in the near term.

And we know that once taxes are raised, a new baseline is established....

[moneill]

If people are getting into your community pool -- you need better security. It's really not that expensive. Your HOA board should look into it.