What Do You Think About Property Tax Raises – Good or Bad?

I saw an article on CNN Money that made me ridiculously happy about California and taxes.  Don’t think that is possible?  Let me explain.

When home prices are going up the government gets lots of money from the property taxes tied to home prices.  With the market down lots of projects have been suspended, roads, hiring and salary freezes, cutting public employees.  It’s tough out there.

In addition to cutting expenses the local governments are looking for ways to raise money. 

IN A 2011 SURVERY 15% OF U.S. COUNTIES REPORTED RAISING PROPERTY TAXES.  It also reported that property taxes account for 3/4 of all tax revenue.

Between 2006 and 2008 property taxes collected nationally rose from 364.5 billion to 410 billion according to the US Census.

The flip side is that these taxes can go toward supporting property values such as good schools, parks, roads, and other public needs.

41% reported halting new hires, 45% froze employee salaries, and pay, while 52% gave furloughs.  about 34% reported delaying infrastructure repairs, and 31% delayed construction projects.

Thankfully in California our property taxes are capped and cannot go up more than 2% per year which does not occur in a down market. 

With all the layoffs, hitting people in the pocket guarantees that they will be strapped on cash, short sell and/or foreclose.  A sad situation.

What do you think?