Even in Local Declining Property Value Markets, Property Taxes Explode Due to Pension Fund and Health care Cost Increases
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Pensions Push Taxes Higher – WSJ.com
Property taxes are a function of the assessed value and the tax rate. As property values have imploded, economically-challenged localities have been forced to significantly escalate tax rates. Philadelphia, for example, is seeing a 9.9 percent increase in property tax rates while home values rose an estimated 3.3 percent (the average median price reported by the National Association of REALTORS® for the first three quarters of 2010 compared to the average quarterly median in 2009).
The burden of property taxes are compared across U.S. counties by the Tax Foundation, with a comparison of 2009 rates at http://www.taxfoundation.org/taxdata/show/1888.html
What must be focused on is not the ever-increasing tax rate pointed out by the Wall Street Journal article, but rather the ability to control and rein in local spending. At some point, voters will rise up and go after cutting these increases, and when they do, unfortunately, pensions of individuals will likely be curtailed.
If you have been keeping with the issues related to the potential failure of municipal bonds, now you know the rest of the story.