Bloomberg BNA: Property Tax Caps–Giving with one Hand, Taking with the Other

On the other hand, tax caps on assessed value in particular can lead to tax disparities amongst homeowners in neighborhoods where market values are comparable, according to the Institute on Taxation and Economic Policy (ITEP). This disparity is likely to present itself when properties are subject to a change in ownership. In such cases when the property changes hands, the new homeowners will not benefit from the tax cap and when the property is assessed, they may be obligated to pay property taxes that are much higher than those of their neighbors and their predecessors. In cases where tax rates themselves are subject to a cap, ITEP has indicated that concerns arise over whether the local governments can provide constituents with “a consistent and adequate level of services.”

Read more