On this morning's broadcast, one of Abdul's callers brought up the issue of sheriff's sales and foreclosures not being included in process to determine the "Fair Market Value" for property tax reassessments. This got me to pondering whether or not this would have made an overall difference. The answer is, no, it would not.
Take for example my immediate area. There have been virtually no foreclosures or sheriff's sales (that could well change next April). Thus, there would be no change in assessed values. In areas that have experienced these events, assessed valuation would decrease.
Now here's the rub. The beast still must be fed. The total tax levy will not change. Therefore, to make up for the loss in property values, the tax rate must increase. Home owner's living in areas where everyone is making their mortgage payments and doing that which is right will end up with an even larger bill than before to compensate. Fair? No.
The only solution to the inequities that the system introduces is the elimination of the system and its replacement with a combination of sales and income taxes.