WHAT'S REALLY WRONG WITH PROPERTY TAXES?
NOT WHAT YOU MIGHT THINK
If your town doesn't need a tax increase should anyone pay more taxes? Of course not. And if there's no revaluation, no one will.
But Rhode Island towns revalue every three years ensuring that new owners will be sensibly and fairly taxed on the value of the house they chose, using a fair rate based on market values. But what happens to everyone else? Are they paying the right tax?
The fact is that thousands will pay much more taxes than the levy requires, regardless of what happens to spending - even if the town doesn't increase the levy at all ! Does this make any sense? Why allow your property tax dollars to be used merely to lower someone else's tax bill, often as not, someone in a more expensive house?
In summary, a revaluation does tax new owners properly but it does not tax existing owners properly. Without revaluation the opposite is true - existing owners pay a proper tax but new owners don't. Our current market based system is always wrong for someone.
REPLACE
THE PROPERTY TAX WITH A PROPERTY OWNERS TAX
With
an Owners Tax the tax bill is based on the prior
year's tax bill, adjusted just enough to fund the tax
levy, similar to what currently happens to tax bills in a non-revaluation
year. If the levy increased say 3.4%, everyone gets a 3.4% increase.
Since
new owners have no prior tax bill ,
their initial Owners Tax is based on the current assessed value of their purchase,
just as in a standard revaluation
year. This becomes their prior tax and
their future tax bills will be adjusted the same as everyone else, on their prior tax.
BENEFITS OF AN OWNERS TAX |
| • Fair and reasonable taxes
for everyone each and every year |
| • Tax bill increases are limited
and predictable resulting in... |
| • A better
business climate |
| • Lower revaluation
costs |
| • Assessment
reviews become unnecessary |
| • Revenue is unaffected -
revenue neutral |
|