Additionally if the housing market was in free fall that would impact the tax revenue of the city. Not saying we don’t want to do it, but there are going to be consequences.
City taxes are typically part of the budget and property values determine how much you pay in relation to other properties in the city, not how much your house costs.
Say the city budget is $1,000,000 and 100 houses in the city (total), and they’re all equal value. Each house pays $10,000 in property taxes regardless of the value being $100,000or $1,000,000 per house.
Hyperbole and simplification done to make an easy explanation.
Additionally if the housing market was in free fall that would impact the tax revenue of the city. Not saying we don’t want to do it, but there are going to be consequences.
City taxes are typically part of the budget and property values determine how much you pay in relation to other properties in the city, not how much your house costs. Say the city budget is $1,000,000 and 100 houses in the city (total), and they’re all equal value. Each house pays $10,000 in property taxes regardless of the value being $100,000or $1,000,000 per house.
Hyperbole and simplification done to make an easy explanation.
That is not true in at least the city I was in before. They set a tax rate percentage and you pay that percent of your home value as taxes.
So when house prices more than doubled during COVID did their tax revenue increase or did they readjust the % to match the new values?
there is usually an assessor that determines the assessed value, and that is the basis for property taxes.
transfer taxes are another matter, as well as capital gains on homes that are not your primary residence.