Rising Property Taxes – Will Homeowners Be Driven Out Of Their Own Homes?

Rising Property Taxes - Will Homeowners Be Driven Out Of Their Own Homes?Throughout the US, homeowners are fighting property taxes, which are on the rise. If you think a slip in home prices ought to reduce property taxes too, you are wrong. There are many factors at work to impact property taxes. For one thing, the tax rate is determined in the budget policy. Ohio residents were on an outbreak for a last minute increase in property tax rate. Other than that fact, let’s consider what causes property taxes to rise?

Home Improvements and Rise in Area Value

A significant factor that causes property taxes to rise is home improvements. Any improvement like adding a garage or home office raises its value in the next tax assessment. A higher value is proportional to a higher property tax. However, you can control this factor by filing an appeal and requesting a lower assessment amount.
A general rise in property value also increases property taxes. This increase in value can be attributed to an influx of residents or nearby luxury home constructions which drives the value of your neighborhood higher.

Government Need or School Funding
Local governments use property tax to raise quick funds. However, to ensure checks and balances, some states have placed limits on the maximum amount of property taxes. Local governments use the money generated from property taxes to fund many of their operations. If a school in a district requires financial assistance, the local government may raise the property taxes in that area to get the extra funds.

What to Do About It?
Nationally, property tax collections rose to $182.8 billion during the last three months of the year 2013. This tax collection topped the previous peak, which was four years earlier. Some homeowners have also complained of an overvalued real estate assessment raising their property taxes. The government is gritting their teeth and passing on the burden to taxpayers to fill the budget gap but the question is, will homeowners be able to bear the burden in this state of economy? However, they can file for an appeal with their local tax assessor’s office and get the property re-valued for a fair estimate and lower property tax.

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