Local Effects of Property Tax Reform

ImageChef.com - Custom comment codes for MySpace, Hi5, Friendster and more Well, I received my property tax notice last week and surprise! my property tax bills are not going down significantly (neither did my insurance by the way). I can’t complain as I am one of the lucky homesteaded property owners who defied the “average-time -in-a-house-is 5-7 years-rule” and have been in mine for over 16, so my taxes are low compared to many others in my neighborhood.I live in the Village of Pinecrest, which has been an ardent supporter of the public schools within its boundaries since it incorporated in 1996. Due to the tax reform passed last legislative session, Pinecrest has to rollback their millage rate by 9% and, as a result, cut $50,000 out of its budget that used to go to the schools in the form of $10,000 grants. Obviously this isn’t the only cut they made, parks among other items also got hit, but with three students in the public schools here, it is a cut that will directly affect me.How does this relate to real estate? Easy.

  1. Companies need an educated workforce to want to do business in a state.
  2. Employees relocating with their companies want high quality public schools.
  3. Properties in areas with quality public schools are in higher demand than other areas.

So, while we are all clamoring for property tax cuts and super-sized exemptions to make housing more affordable in the state, let’s remember that cuts will have to be made and we may not be happy with the long term results if those cuts are made in the wrong places.

About The Author

Jennifer Wollmann

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