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A lot of property owners across the country are scratching their heads and asking the question, "Why in the world are my property taxes going up when the market value of my property continues to go down?"

In New York City, the following situation exists (as reported by Glenn Pasanen, April 2009, in the Gotham Gazette published by Citizens Union Foundation):

"In the current fiscal year, property taxes are projected to be $14.4 billion, or about 41 percent of all city taxes. And while the IBO [Independent Budget Office] projects personal income taxes will fall next year by nearly 22 percent and business income taxes by 23 percent, property taxes will rise to $15.8 billion, making them account for more than 47 percent of all city tax revenues in 2010."

And in Florida, Melissa Yeaker of WINK News reported the following on June 18, 2009:

"LEE COUNTY, FLA-- A lawsuit filed in Lee County Circuit Court alleges Lee County Property Appraiser Ken Wilkinson used higher 2007 sales prices to come up with home values--overcharging Lee County homeowners hundreds of dollars in taxes."

Apparently, municipal taxing authorities from different parts of the country are endorsing the idea that, if you happen to own real estate, you are somehow more responsible than non-owners of real estate to "make up the slack" in failing budgets as municipal governments scramble to make ends meet.

After all, it's easier to get money from folks if you can slap a lien on their home or business property if they don't pay - so why not just make property taxes a little higher (or a lot higher) to generate some extra revenues.

No sense worrying about whether or not the tax is legal or equitable.

- Ed Smith, Publisher
The EHS Letter Manual