I would like to point out that falling realestate values do not mean lower property tax revenue for our County.
Two similar houses….
One house sold in 2006 for 700K and is producing 8K a year in taxes, but then sold in 2009 for 450K and is now only producing 5K in taxes, a 3K drop.
The second house was last sold in 1977 and is producing 700.00 a year in taxes but then is sold in 2009 for 450K so is now producing 5k a year in taxes. A net gain of 4300.
Between the two houses the country has gained revenue even though prices have “crashed”.
Don’t take my word for it. Despite the “crash” in real estate, property tax revenue is actually increasing each year, just at a much much slower rate than it use to.
And, don’t forget, they can raise the rates on everyone the base amount allowed by law, each and every year.
Also commercial property when sold in a way that generates a new appraisal can be a big wind fall for the country also. Most commercial property has been protected from reappraisals when there is a change in ownership because of the many loop holes that were written into prop 13 (those in the know, know that Prop 13 was just a way to keep taxes low on commercial property and effectively shift the tax burden from business to the FUTURE homeowner, but was sold as a way to “keep Granny in her home”), but when it does happen it is significant.
