Your real estate tax bill likely shows increases in just about every category. Most real estate tax bills (2009 tax Yr) have increased somewhere in the vicinity of 10%. So tax bills that were $8,000 are now $8,800. Of course, we realize two-thirds of the total goes to local school districts. And generally that is a good cause. But what happens when taxes get so high that buyers shy away from buying. I see that happening already.
Families that want their children going to the best schools and can't afford housing in those areas are renting. Rather than try to buy a home and have $15,000 or more in annual real estate taxes (in addition to a mortgage payment)they are renting for around $20,000 a year.
Now, here is another real body blow to homeowners. The 2010 tax assessments are being mailed to homeowners. In a number of suburban areas, 2010 is a (tri-annual) reassessment year. And assessment increases are being seen in the 25%-50% range! Now, who has seen property values increase in the last 3 years to justify an increase in the assessment? This is ridiculous and way out of control! Could you imagine your real estates going from $8,800 for the 2009 tax year (in example above) to $13,200 in the 2010 tax year? Think about that one.....
Imagine what tax bills are going to be when property values show an increase in value?
Make sure you watch your mail box (or go online) for the new 2010 assessment, especially if your township is being reassessed for the 2010 tax year (payable in 2011).
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