Property Taxes Revisited
The Webster-Kirkwood Times has some commentary on Senate Bill 711, which would eliminate the property tax loophole that allows taxing jurisdictions to raise tax revenues through reassessment, rather than through rate increases.
Dave has some commentary on how this issue will affect 2008 property reassessments, in light of recent housing events.
The one comment I have on the legislation is, why is the Senior Citizen Property Tax credit being increased from $750 to $1,100? If the purpose of the tax bill is to protect taxpayers by forcing jurisdictions to roll back tax rates to counter reassessment increases, then how do you maintain revenue-neutral tax policy when you’ve just created a huge revenue shortfall through an expanded tax credit? In the interest of fairness, shouldn’t cities be allowed to “roll up” property tax rates to counter reassessment decreases?