Many states using a form of modified fair market value in their property tax calculations have enacted property tax cap laws, Bloomberg BNA State Tax Law Editor Michael Kerman writes in this week’s issue of the Weekly State Tax Report.
Such measures are meant to ensure that homeowners can afford the higher taxes that come with increases in property values, he explains. But, these caps are not working as intended, Kerman says.
“While the caps do ensure that taxpayers experience small and steady increases in their property tax bills, they have in some states crippled municipal revenues and prevented properties' assessed values from returning to pre-recession levels after periods of declining value,” Kerman explains.
Kerman’s article, which can be read in its entirety here, takes a look at the states that have enacted caps, explains the issues that have arisen after the caps were implemented and suggests that states recently implementing or considering property tax caps learn from these states' experiences.
Continue the discussion on Bloomberg BNA’s State Tax group on LinkedIn: Has your state enacted property tax cap laws?
For more information about this and other state tax issues, sign up for a free trial of the Bloomberg BNA Premier State Tax Library.
In other developments…
Sutherland SALT Shaker: August 2014 Digest
New Study Finds New York Growth in Millionaires Slowest in the Nation, by the Tax Foundation
Compiled by Priya D. Nair
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)