On July 1st homeowners in Macomb County went to their mail boxes only to find their 2009 summer property tax bills. Of course, the calls immediately started "Why are my taxes so high when property values are dropping?" or "Why is my house listed so much lower than my assessment?" We see it daily.
But just about everyone including our cities, townships, states and federal government are feeling the ramifications of the housing problems. But the real question is Will the housing bubble burst bankrupt your city or state?
According to the Center on Budget and Policy Priorities "at least 48 states addressed or are facing shortfalls in their budgets for the upcoming years". I knew California and Florida were in trouble financially but I was totally blown away when I saw the chart on the CBPP site showing the budget gaps projected for 2010, in all the states.
So it started me thinking about a Question I asked one of the Macomb County Commissioners a few months back at a meeting.
"When property values were lower you managed to get by just fine on the money you received from taxes Then values went up and you received more money, SO what did you do with all the extra money?? His answer simply amazed me - I was told that when they receive money they MUST spend it. They must by state and federal laws find somewhere to spend that money. In other words they added more and more programs as values went up.
But now that property values are down what are they going to do? Here in Michigan everyone of our sellers are being way way over assessed. We are seeing homes selling for $80,000 but they are being taxed at $160,000. So what's going to happen next year when they are collecting even less money? The cities had no problem raising our taxes up but they are adjusting very Sloooow.
Will our cities, counties and states go bankrupt? Or will they just figure out a new way to assess our homes so they can raise property taxes to keep the programs they created? Or will the government cut programs and if so which ones?
I have not attended any Tea Parties but I am beginning to think it may not be a bad idea.
What do you think? Homeowners do you feel you are being over assessed? Real estate agents what's your area like?
