The property assessment fallacy

Ideally, this whole system of property taxes gets trashed completely.

This whole assessment system is a complete disaster. It’s subjective, and for the city, it in no way can be cost effective. They’re spending so much time and money trying to get this right. The only thing that gets an assessment correct is the actual market.

Property taxes are just plain wrong, but if you’re going to have them, then they should be based on the last sale of the property and stay there until the property sells again. Any increases should be limited to the rate of inflation.

They figured this out in Massachusetts with Prop 2-1/2, which limited tax increases to no more than 2.5%, unless the town voted for an override.

What’s more important to the vitality of a city? A stable and prosperous population or a unfair and strangling revenue stream all-but-designed to keep out productive families and businesses?

Ideally, the city should be assessing all properties each year. However, it does not have the capacity to do so, Piper said. New software is expected to be installed by July 2018 that will allow yearly assessments.

Source: Reassessment an underassessment for many, city says