April 14, 2008 Truth-in-Taxation
Property taxes are frequrently cited as the most hated tax, partially because they are also the least understood tax. One reason property tax is more complicated is because of the various tax entitites and their differing tax rates (as illustrated with this picture). However, property taxes can be explained in a relatively direct and simple manner….which we have sought out to do.
Property Tax Myth #1: Cities receive more money when home values increase We have found through our trainings of newly elected officials that there are a number of misperceptions regarding property tax revenue during times of increasing home values. Even among many elected officials there is this perception that cities recieve a windfall of revenue every time the homes in their community appreciate in value. However, truth-in-taxation prevents exactly this from taking place. Instead truth-in-taxation creates a brake on revenue windfalls associated with increasing property values.
Roger Tew and I recently presented a basic outline of how truth-in-taxation works to our city officials across the Wasatch Front. You can access the presentation here: ulct-property-tax-forum3