Real Estate Tax Burden Changes Hands?

Golden egg in nestHow’s this for a [tag-tec tax ]statement[/tag-tec]?


“That’s the cheapest way to grow a government,” said Robert Lang, director of the Metropolitan Institute at Virginia Tech in Alexandria, VA.  “It’s  like found money.”


No more.  Times are changing.  The golden goose is on life support. 


We all know he was referring to our real estate.  Dare I say it?  It’s been far too easy for city governments to reap our real estate harvest.  Times were good.  Cities got too greedy.  And now that windfall for [tag-ice tax]local[/tag-ice] governments is about over. 


The past booming real estate market raised a lot of tax revenue in a lot of places.  It’s been an exhilarating, exciting time.  And real estate investors  bore most of the tax burden. 


Douglas Gourley, of Pembroke Pines, Florida is a good example.  He watched his tax bill rise 60 percent on his house.


He was not alone.  In some areas if you moved from a $200,000 house to a $400,000 house you may have found yourself paying double the taxes. 


What’s next? 


No one really knows, although we can certainly take some educated guesses. 


City governments  will cry and make a stir on the Six O’clock News. They’ll try to scare people by cutting services.  911 services will be discussed more and more.


My prediction is it will all level off.  Cities will have to find other ways to collect tax revenue.  Not only was it unfair to place such a tremendous burden on real estate, but it was bad for business.  Killing the golden goose is absolutely the stupidest thing they could do. 


What does this mean for us?


I think it’s good news, more or less.  The secret is out.  Cities won’t be able to slap dramatic taxes on us quietly. In other words, they’ll have to find other  areas to mine the money.   Like everything else, tax collection moves in cycles.   


Technorati Tags: ,