Quote:
Originally Posted by bigpatsfan
How does the real estate market slowing down result in tax increases leveling off?
The town determines the cost to run the School and the Town. This is done via Town Meetings and Town votes. Then they then submit this information to the State and the State uses the current valuations of homes, land, business building..etc to determine the tax rate per thousand of assessed value. This amount brings the exact amount of money to the Town to pay for the budgets that the Town submitted... there is no extra money being collected.
With that said, a lot of Towns will have a line item in their budget to set aside money so that when they need to do a major spend (new buildings, major road repair...etc) they can use that money to offset the large cost.
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More housing being built means more money is needed for the influx of people for increased services. I think many people saw their taxes go down slightly during the last recession.
Now you're seeing the result of an expanding economy and increasing home values. I'm not saying taxes are going down but if the real estate market slows then so will the tax increases.
I'm seeing it in my business, for quite a few years prices were stagnant. Everyone was afraid to go up because business was slow. Now everything is going up and they say there's no inflation. That's a bunch of B/S.