Is a Tax Reassessment Fair in A Deflating Market - Adams County Tax Reassessment

Gerry Michaels and I have both written quite a few blogs about the Adams County Tax Reassessment. 

Gerry's recent post The Product is Flawed has garnered some interest here on ActiveRain but I'm sure has hit home with some of the local Adams County Residents. 

I've been emailing a gentleman lately that has made some great points.  Primarily that we, as taxpayers, are being placed in a deflationary trap.  Under typical economic circumstances home values increase over time thus increases in taxes can be justified by higher home values.  However, currently home values continue to deflate and show no signs (locally) of returning anytime soon.  This isn't a doom and gloom post, but realistically there just isn't enough people in the market to generate enough activity to make any sort of assessment that would indicate inflation in prices. 

So here we sit in 2011 with 100% assessments, continued devaluing of home prices, and yearly tax increases to cover budget shortfalls.  Do you see the problem?  Can you recognize the "trap?"  If we are assessed now before the prices fall any further, we will be locked into these tax assessments for the next 10 years (typical time frame between reassessments)  There are some economists out there that predict we have a long way to go before we see a period of economic growth and price recovery. 

There is the argument that the tax base is the tax base regardless of home values a certain sum of money must be collected to conduct business on the local level, but there are a lot of questions marks right now.  Besides a select few the bulk of Adams County was content with their taxes prior to this reassessment. 

The developments continue with the tax reassessment.  I'm sure as local government look for more funding this issue will become more prominent across the states/country. 

The schools are limited to a 1.18 mileage rate increase per year according to the Gettysburg Times.  Imagine that figure x2 under the new 100% assessments.  At this point we don't even know if that figure is being reduced as a byproduct of the reassessment. 

Follow me on twitter or follow my blog for updates are more information is available. 

Photo by ..Wink's Place..