There are two lessons that must be retaught every time a change is made to locales that tax based on the market value of real property. The first is that people don’t have a firm grasp of how taxes are assessed. The second is that people burned by the reassessment, meaning that their taxes will increase, will be outraged.
Nassau County, New York, is engaged in a reassessment, necessitated by myriad failures, both political and factual, but driven by a billion dollar hole produced by successful tax grievances that had to be repaid. The irony here is that half the billion went neither to the county nor the taxpayers, but to the cottage industry of tax grievance representatives, who took a 50% cut of the taxes they saved residents.
When people’s real estate taxes went up, they blamed the county, assuming it reflected a tax increase rather than a redistribution of taxes. In fairness, Nassau County real estate taxes are astronomical, but most of that is based on local school taxes, where per-pupil-spending exceeds $20,000. But since the county handles the assessment, how the pain is spread out comes back to the county, and makes the county the butt of ire. Continue reading
