Help for high property taxes - PASS THIS!

[Argie's Wife]

Taxes don't always go up because spending goes up, but when the assessed values of the properties in any given town goes DOWN, then the tax rate must be increased to raise and appropriate the funds approved by the voters.

In other words: Just because you have a 0% tax cap, that doesn't mean that your taxes won't go up anyways.

[Ridgefarmer63]

Originally Posted by Argie's Wife

Taxes don't always go up because spending goes up, but when the assessed values of the properties in any given town goes DOWN, then the tax rate must be increased to raise and appropriate the funds approved by the voters.

In other words: Just because you have a 0% tax cap, that doesn't mean that your taxes won't go up anyways.

Amen sister.

Death and taxes, horseshoes and hand grenades. but we still have each other and this fabulous forum !!!

[ITD]

Ok, I'm confused here. Typically a tax cap limits the amount the tax levy can increase. Tax levy defined as the total amount of money raised via property taxes. The tax rate multiplied by the valuation add up to the levy, which after this law is passed will be not allowed to increase (the town and school portions in this case) unless a large percentage of voters vote to raise it.

Changing valuations do not change the total taxes collected, although due to inaccuracies in accessing properties some individual tax bills may increase or decrease, most pay the same amount PLUS increases added because of increased spending by local and state government.

That's the way most of the rest of the world works when talking property taxes, is NH different?

[Argie's Wife]

Let me rephrase my earlier post:

Just because you have 0% budget request increase, that doesn't mean your taxes will stay the same.

Taxes will go up or down based on the property owners' overall assessed values. The lower the values, the more money that will need to be raised.

[I'm posting those comments, above, to those posters who have associated a tax cap with a budget cap. They are NOT the same.]

Ms. Merge posted about a 0% tax increase and stated: "Time to stop the spending increases."

If you're saying that you're okay with paying $16.55/1000, I guess I get that, but can you see a decrease if the property assessments go up? Is this really a good time to freeze a tax rate when assessments are low and the rates are high?

By the way, I believe that in an SB-2 town the proposed budget articles can only be changed by 10% from the floor of a deliberative session. I don't have the RSA at hand to double check that now.

[ITD]

Tax levy is the total amount the taxpayers pay to the town. That is very consistent in that it doesn't matter what valuations are, they change the tax rate to assure that the same levy is raised the next year. During the year if increased spending is approved then the levy must be raised with the tax rate adjusted accordingly. If a new valuation is done in a given year and valuations are down, then the tax rate is increased so that the levy is consistent. If a new valuation is done and valuations go up, then the tax rate is adjusted down, again to keep the levy consistent.

Taxes go up because politicians spend more, that's it. I'm pretty sure this bill caps the levy, which in my opinion can be a good thing, especially at 0 %, which forces politicians to ask the voters for more money, something they aren't required to do now.

It's a myth that rising property values cause taxes to increase, just like it's a myth that falling property values cause taxes to decrease. Politicians spending your money make taxes go up.


Freezing the tax rate can't work, freezing the levy works great.

[Argie's Wife]

Taxes go up because politicians spend more, that's it.

Voters approve the recommended budgets for towns and schools - when they don't approve the recommended budgets then the town or school district has a default budget. Governing bodies can't spend more money than what was approved by the voters. If the voters approve a $6M budget for a town, then that's what the Selectmen have to work with to manage the town.

[tis]

The problem is that most people have no idea what they are voting for.

[ITD]

Originally Posted by Argie's Wife

Voters approve the recommended budgets for towns and schools - when they don't approve the recommended budgets then the town or school district has a default budget. Governing bodies can't spend more money than what was approved by the voters. If the voters approve a $6M budget for a town, then that's what the Selectmen have to work with to manage the town.

What you say is correct for towns with town meeting, absolutely. So ipso facto tax rate and valuations have nothing at all to do with rising taxes. Politicians spending money causes taxes to rise, sometimes their spending needs to be directly approved by the voters, as in town meeting government. Sometimes politician spending does not need to be approved by the voters as in many cities and the state government.