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Property tax promises and problems

March 19, 2008
Property tax concerns are popping up in media reports nationwide.

The Tax Justice Digest, the blog from Citizens for Tax Justice, tells us that Poorly Reasoned and Poorly Targeted Property Tax Reductions are Gaining Steam.

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Specifically cited in that blog are property tax proposals, affecting both personal property and real estate, in Georgia, Oklahoma and Arizona.

The problem with all these, argues Tax Justice Digest, is that "we’ve learned on the federal level that tax cuts simply don’t pay for themselves."

Then there’s the inevitable cuts in public services — a fear voiced in Tax cap would harm schoolkids — as states and counties have to make up for lost revenue.

But those factors don’t appear to be persuading legislators or cash-strapped property owners.

Other states where property taxes are getting renewed attention include:

I share these residents’ dismay at high property tax bills. Texas tweaked its assessment and valuation system last year, and the hubby and I saw some reduction in our annual bill.

But I suspect our tax relief will be short-lived, especially since local home values haven’t taken as big a hit here in the Austin area as have properties in other parts of the country. Our next assessment, even with the lower rate, is likely to get our real estate tax bill back to where it was in 2006.

In the immediate aftermath of a big property tax bill, homeowners have some options. MarketWatch’s Marshall Loeb, for example, offers three steps, first published in Kiplinger’s magazine, to getting your property assessment and subsequent taxes reduced.

Looking for other revenue sources: Unfortunately, the alternatives to property taxes aren’t pretty either. And they’re not limited to the United States.

Thickening My Wallet, a Toronto-based blogger, notes in this blog entry that his large Canadian city, like all jurisdictions, has very little revenue generating power outside of property taxes, user fees and development charges. And each has its own pros and lots of cons.

My fellow financial blogger also does a nice job of summing up the problem:

"But my one gripe about the debate on this issue is that politicians of all political stripes are selling us a dream that, over the long term, is not sustainable – pay low taxes but get lots of services. I wish the debate was framed with some degree of reasonability and a semblance of setting out realistic options that we can prioritize. Right now, I get the sense that our elected politicians think we are too stupid to prioritize if given clear choices or there just isn’t the collective political courage to meet this issue head-on in a constructive manner."

Sounds like Thickening My Wallet lives right down your or my street instead of north of the border.

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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