This is in the news lately and there are a few states that have bills in the legislature to reduce property taxes for certain groups of people, (seniors) or under certain circumstances.
Make no mistake, this money will have to be made up from another source because we all know they are not going to reduce spending. The question becomes, will you actually benefit, or will you pay more in the long run through new taxes, increased mileage rates, or user fees?
The politicians will claim they handed you a victory in the form of a lower property tax bill. But is the victory a hollow one?
In my state, there is a bill in the works to reduce the property tax for seniors. They have to be over 65 and live in the house that is their primary residence for at least 5 years to qualify. There are lots of retirees here and a lot of them live in million dollar plus lakefront properties. So where will the county make up the shortfall?
They could ratchet up the mileage rate over the next few years to claw back some of it.
They could add another 1% to the local option sales tax. (they already did this once in 2023 for infrastructure repairs claiming lost gas tax revenue)
They could raise the hospitality fees on local hotels and restaurants, so non-residents pay some of it.
They could increase fees that are baked into your utility bill like the ridiculous storm water run off fee, or the ever popular environmental fee.
Or any other number of fees that do not require a vote and hope they go unnoticed.
Another 1% of the LOST will probably be the least likely because it would have to be passed by a vote. So, they will have to be stealthier about it. But, in their favor, whatever method they choose will be paid by all, not just the ones getting the tax break. And in a few years down the road, will you be back to paying what you are now?
In my case, if the bill passes in its current form, it will reduce my property tax by about $400. It will remain to be seen if by the time they reshuffle the deck if I actually benefit.
Someone famous once said, "There's no such thing as a free lunch".
Anyone else here given this any thought?
Make no mistake, this money will have to be made up from another source because we all know they are not going to reduce spending. The question becomes, will you actually benefit, or will you pay more in the long run through new taxes, increased mileage rates, or user fees?
The politicians will claim they handed you a victory in the form of a lower property tax bill. But is the victory a hollow one?
In my state, there is a bill in the works to reduce the property tax for seniors. They have to be over 65 and live in the house that is their primary residence for at least 5 years to qualify. There are lots of retirees here and a lot of them live in million dollar plus lakefront properties. So where will the county make up the shortfall?
They could ratchet up the mileage rate over the next few years to claw back some of it.
They could add another 1% to the local option sales tax. (they already did this once in 2023 for infrastructure repairs claiming lost gas tax revenue)
They could raise the hospitality fees on local hotels and restaurants, so non-residents pay some of it.
They could increase fees that are baked into your utility bill like the ridiculous storm water run off fee, or the ever popular environmental fee.
Or any other number of fees that do not require a vote and hope they go unnoticed.
Another 1% of the LOST will probably be the least likely because it would have to be passed by a vote. So, they will have to be stealthier about it. But, in their favor, whatever method they choose will be paid by all, not just the ones getting the tax break. And in a few years down the road, will you be back to paying what you are now?
In my case, if the bill passes in its current form, it will reduce my property tax by about $400. It will remain to be seen if by the time they reshuffle the deck if I actually benefit.
Someone famous once said, "There's no such thing as a free lunch".
Anyone else here given this any thought?
