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Property tax revenue plummets with home values
3:35 PM
As banks feverishly dump foreclosed homes at cut-rate prices, and as neighboring homes change hands at similar bargain-basement rates, those amounts are enshrined as the new basis for determining property tax until the homes are sold again. Under Prop. 13, that basis can rise a maximum of just 2 percent a year, even if the home is worth significantly more. The consequence is likely to be a revenue crunch for the public services funded by property tax revenues.
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This is going to have a long-term impact on the state budget and on local budgets," said Jean Ross, executive director of the nonpartisan California Budget Project in Sacramento. "It means that even after the economy recovers, state and local government budgets will not recover fully."
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/01/24/MNV7155VSC.DTL&feed=rss.bayarea
Modern minimalist living room
3:32 AM
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