The Jumblog

In every state in the US, your taxes are about to go up!! In my home state, our lovely state delegates “got us” at 3am in the morning a couple of weeks ago. Here is one of the major revenue problems: A large portion of your state (and local) budgets come from property taxes. And a major portion of those property taxes just went bye-bye!!

When a foreclosure happens and the home sale net proceeds are less than what’s owed on the loan, no taxes are paid! When market values go down and the taxes are based on the value of the home, residents start protesting their tax bills and pay less (rightfully so since their homes are based on inflated values)! Even the transfer taxes (or stamps) paid at settlement on a purchase are decreasing since there are less overall purchases to tax in the first place.

However, I have not seen one state adjust their spending budget for this shortfall they have seen coming for the last 18 months. They just figure out a way to make it up with a tax. Just once, I would love to have seen a municipality anticipate this (since we always vote the rocket scientists into office) and take steps to curb their spending so this would not be as painful.

I don’t have a magic bullet either but I would love to see the issue studied, not by a Blue Ribbon panel of congressional reps and economists but by actual successful business people in the local area. In every city and state in this country, there are hundreds if not thousands of VERY successful business people that each market could tap. Put the ones who KNOW how to do it in the position of making suggestions. I love these special blue ribbon panels of people who have never turned a profit in their lifetime!! If it means tightening the belt than that is what happens. If it means taxing the residents or businesses in a “responsible” way that that is what happens. At least have the discussion out in the open and not at 3am in a back room in your statehouse!!
Get ready for court battles over the legality of new taxes!! Get ready to see your state and local governements coming after your wallet. There has to be a better way..

Homeowner Beware!!!