Quote:
Originally Posted by kjkam
Looks like the property valuations have gone up from 15-35% from 2016 to 2017, wonder what 2018 has in store. What is the city doing with all that extra cash?
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Interesting question as to extra cash. I once had a former selectman ask me the same question when Alton valuations had gone up. As with most taxpayers, he did not understand the basic concept of how it works. No extra cash would be collected due only to increased valuations!
After a spending budget is passed by a town meeting or city council, only that approved $$ amount minus other expected revenues can be collected by property tax. (There is a minor "overlay" amount added to hedge for abatement's and deadbeats).
If the net valuation (sum of all valuations) goes up then the tax rate goes down so that only the approved amount is collected. Individual assessments serve only to divide up the overall cost of running the town or city. It is you against your neighbors once the budget is approved.
The focus on limiting property taxes needs to be on limiting the approved budgets. That involves things like getting involved and also voting.