There's no new tax bubble around the corner. So nothing to bail the States (or the US) out again.
So while they may be feeling flush and pretty today, it's going to end badly for them (and you) again.
Reductions to school budgets. Cut-backs to basic services like Police and Fire. Layoffs of city and State workers. Massive record deficits.
Enjoy the last days of the tax bubble.
April 13, 2006
Asset bubbles cause temporary tax bubbles... then they pop..
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I recently visited my childhood town of Sequim Washington where the locals are up in arms over property taxes. The long time 2 and 3 generation families are having trouble keeping the family farms and businesses as the city limits expand and the prices go up. I know I would be upset if the Government were forcing me out of the land my great grandfather homesteaded. This type of property taxation is tyranny. We can't be free while supporting this perpetual welfare state.
How did they get sucked into the city limits? Here where I live (out in the county BTW) the city promised city services if an area was annexed. The city got the taxes but did not deliver services. Some people with large plots of land are going to the state legeslature and requesting de-annexation.
charles Smith wrote: "The real mystery in the chart is what's keeping Colorado...property taxes so stable".
It is no mystery. It is spelled TABOR which stands for the Taxpayers Bill of Rights. Passed by Colorado voters in 1992 (more (biased) info is at http://i2i.org/TABOR2003.aspx ), TABOR limits a governmental entity's tax revenue growth to inflation + population growth.
,dave
also colorado had its bubble run-up before the rest of the US - their real estate has been relatively flat for 4 years now
I live in western CO and the #!@% Dems took control of the legislature last election. They are working like hell to get rid of TABOR because it limits their spending plans for the Denver metro area where most of their voting base lives.
The rest of the state could care less about the self-inflicted problems of Denver (a progressive, "sanctuary" city LOL!), but the pols want us all to pay for their stupidity and lack of planning as they mindlessly encourage sprawl across the countryside.
I've met quite a few people who are in favor of splitting this state in half along the Continental Divide. The dems can have their sanctuary cities, tax-n-spend paradise East of the mountains, and the sane people can all live in peace on the West slope. We will gladly sell them water at $1/gal when their aquifer runs dry in another ten years or so.
"The real mystery in the chart is what's keeping Colorado and Redmond, WA property taxes so stable, while most regions are experiencing shock-inducing rises."
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In the state of Washington propoerty tax rates are not fixed. Indeed, the law limits the maximum amount of money that a taxing authority can increase its tax revenue by to 1% (not including a few things like voter approved levies and new construction fees). What this means practically is that every year the property tax rate is adjusted to bring in the proper amount of revenue. Effectively, appreciation in values or depreciation in values has no effect on the taxes you pay.
However, in a large city, for example Seattle, whos property tax basis is a mix of residential, commercial , and business your property taxes can increase or decrease pretty significantly if, for exmaple, commercial real estate values fall (overbuilt) and so residential properties have to pick up the tax load.
"There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved."- Ludwig von Mises
Governments will NEVER have enough money to spend. The more they have, the more they will waste. I've seen it with my own eyes working for them. These bureaucrats only care about getting bigger budgets and finding more programs to spend your money
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