I received my tax notice for my residential property and the increase was substantial.
In rounded numbers, my previous tax bill was $2,600 and this new tax bill is $3,300. A $700 increase.
Of course, I called the tax commissioner's office and was given a speech about how I can protest the increase within the parameters of what the tax commissioner allows, which is comparable home sales.
Clearly, not a level playing field, and is limited to making any argument moot. Inflation, created by the velocity of money printing and low-interest rates is what leads and drives inflation — too much money flooding the system and inflating asset prices beyond their actual worth.
Everyone is feeling inflation, from the pump to groceries, to other consumables. Inflation is not limited to the items I just mentioned, but also to the prices of used cars — used cars selling far beyond their value as a depreciating asset.
Home values are not exempt from the monetary policy of the Fed, and central banks (anyone who wishes to read the Fed's history will see they are a driving force behind booms and crashes — no matter how they try to spin it — the Fed has been consistently incorrect and late in their actions). We can surely blame the government’s reckless spending, but that's another topic entirely.
The drastic increase in home values in recent years is not exempt from this monetary policy of printing money and keeping interest rates low. In a healthy economy, you would expect realistic annual increases in property values — not meteoric rises like we have seen. The values placed on home assets are inflated and unrealistic.
These home values are in a bubble, just like many other commodities, and they are crashing now. With rising interest rates, home prices are cratering — true different areas of the country will be affected differently by the speed of decline, but it is coming. Surely, the tax commissioner is aware of this. I believe this is a money grab by the county before values continue to drop, which they are.
I don't want to take up more of your time, but I must say with wages falling behind the cost of living, people losing their jobs, which adds hardship, raising property taxes on a monetary system that is out of control and has warped what a healthy economy looks is disingenuous. For many people, their house is their home, not an inflated asset. Honestly, I would love for my house to be valued at what it is in a healthy economy and monetary system, but I know my house is not. Interest rates are rising, buyers are pausing, and home prices are falling, yet I am expected to pay an increase that is not a true value given the current monetary climate.
Again, I feel this is a money grab by the county knowing things are turning downward. In closing, one only needs to look at the Fed's role since the last housing crash, and all the actions they have taken since, exacerbating the problem.