Dalmatian90
11-26-2003, 03:21 PM
I'm a big supporter of shifting all local school spending to a state-wide Income Tax.
In my area, about 50% of school spending is financed by local property taxes.
Towns can only control school spending growth by controlling how many students move to town. Each student in my town costs me about $4. That's not bad, and I really don't mind paying.
But think now if a developer builds 250 new homes in town. Average 1 kid per home in school, *MY* taxes go up by $1000. So you bit your bippy I don't want to see a development like that happen.
So housing market gets tight since house lots are tight and you get a situation like this from my local paper today:
PUTNAM -- Homeowners will be in for a rude awakening when they get their property tax revaluation notices in the mail this week.
On average, real estate assessments will increase by approximately 60 percent, according to Assessor Rande Chmura.
The last time Putnam had townwide revaluation was 1999. Homes sold during that year have since been assessed at rates dramatically higher than their purchase prices.
Chmura provided the following examples of what revaluation will mean. In each case, the revaluation exceeds the average 60 percent increase:
n A one-floor Perry Street condominium unit that sold for $68,000 is now assessed at $115,000.
n A two-floor Sabin Street condominium that sold for $83,900 is now assessed at $145,000.
n A two-story, single-family house on Pleasant Street that sold for $103,000 is now assessed at $189,000.
"I know it's going to be a sticker shock to some people," said Chmura.
Chmura was unable to provide an estimate as to how the revaluation might affect the town's overall tax rate. Before that can happen, motor vehicles, along with commercial and industrial property in the town, must also be assessed.
Now first thing is home prices rise due to the constrained market ('cause towns don't want the expense of building schools that comes with loose development policies and instead discourage large developments that could satisfy the housing market).
With commercial & industrial property not rising in value nearly as fast, and with a single mill rate that applies to all property, homeowners end up getting an even bigger share of taxes shifted to them. Maybe the split was 60% residential/40% commercial four years ago. If that's 70/30 today, that's a 7.5% increase in taxes above the rate of increased municipal expenditures for homeowners since they're property is rising in value faster than commercial properties.
In my town, with little commercial/industry it's not to bad. In a more developed area like Putnam it's a more pronounced affect!
High housing costs just make things whacky. I might have to become a flatlander yet :)
==================
Meant to add:
Connecticut assess at 70% of estimated market value -- don't ask me why, makes no sense, but they do.
So, "A house that sold for $103,000 (in 1999) is now assessed at $189,000." actually translates to a selling price today probably around $189,000/70% = $270,000
:eek:
In my area, about 50% of school spending is financed by local property taxes.
Towns can only control school spending growth by controlling how many students move to town. Each student in my town costs me about $4. That's not bad, and I really don't mind paying.
But think now if a developer builds 250 new homes in town. Average 1 kid per home in school, *MY* taxes go up by $1000. So you bit your bippy I don't want to see a development like that happen.
So housing market gets tight since house lots are tight and you get a situation like this from my local paper today:
PUTNAM -- Homeowners will be in for a rude awakening when they get their property tax revaluation notices in the mail this week.
On average, real estate assessments will increase by approximately 60 percent, according to Assessor Rande Chmura.
The last time Putnam had townwide revaluation was 1999. Homes sold during that year have since been assessed at rates dramatically higher than their purchase prices.
Chmura provided the following examples of what revaluation will mean. In each case, the revaluation exceeds the average 60 percent increase:
n A one-floor Perry Street condominium unit that sold for $68,000 is now assessed at $115,000.
n A two-floor Sabin Street condominium that sold for $83,900 is now assessed at $145,000.
n A two-story, single-family house on Pleasant Street that sold for $103,000 is now assessed at $189,000.
"I know it's going to be a sticker shock to some people," said Chmura.
Chmura was unable to provide an estimate as to how the revaluation might affect the town's overall tax rate. Before that can happen, motor vehicles, along with commercial and industrial property in the town, must also be assessed.
Now first thing is home prices rise due to the constrained market ('cause towns don't want the expense of building schools that comes with loose development policies and instead discourage large developments that could satisfy the housing market).
With commercial & industrial property not rising in value nearly as fast, and with a single mill rate that applies to all property, homeowners end up getting an even bigger share of taxes shifted to them. Maybe the split was 60% residential/40% commercial four years ago. If that's 70/30 today, that's a 7.5% increase in taxes above the rate of increased municipal expenditures for homeowners since they're property is rising in value faster than commercial properties.
In my town, with little commercial/industry it's not to bad. In a more developed area like Putnam it's a more pronounced affect!
High housing costs just make things whacky. I might have to become a flatlander yet :)
==================
Meant to add:
Connecticut assess at 70% of estimated market value -- don't ask me why, makes no sense, but they do.
So, "A house that sold for $103,000 (in 1999) is now assessed at $189,000." actually translates to a selling price today probably around $189,000/70% = $270,000
:eek: