Property Taxes are driving folks out of where they have lived forever

I know that forever is a long time, however property taxes are really a burden on many.

Everyone is excited when the value of their home goes up!!!!!  This means they made a good investment decision and they are wealthier than they were before.

They have an appreciating asset which in most cases they have locked in with a fixed rate payment over 30 years.

BUT WAIT-  There is a big downside to rising home prices as well.

Just like your retirement portfolio, you are happier when your house value goes up.  However, do you really care about your 401k prior to your retirement?  Realistically it doesn't really matter at all.  

The same goes for your house value, it is cool that your house is worth more, but if you intend to live in it, what difference does it make what it is worth.

WELL IT DOES MATTER WHAT YOUR HOUSE IS WORTH, IN A BAD WAY.

Typically your property taxes are based on the value(assessment) of your house.  If you house goes up $100k in assessed value and your tax rate is $13 per $1000 then you will be paying another $1300 a year in taxes.

I have recently read articles about this happening on Cape Cod:  https://www.newsbreak.com/news....  and another about Miami which I don't have to share with you.

Basically here is how it goes:

• You live somewhere and you are happy
• People from somewhere else come in and buy
• They raise the property values either by paying more, or by building new things
• The price of all houses in the area rise in value
• You now pay more in taxes
• Those on fixed income and many others can't afford to live there
• The culture of the area changes

Sadly we are seeing this happening in Worcester, but it is the City Council's fault.

• The council has maintained a split commercial/Residential tax rate
• This has caused businesses to leave as taxes are lower elsewhere
• More of the tax burden is pushed to homeowners
• Homeowners (who vote for city council) try to push more taxes onto businesses
• More businesses leave
• The only new businesses are residential buildings, or buildings with Tax deals
• Taxes have to rise on homeowners as there is no one else to tax
• These homeowners are pushed out because the cannot afford the higher taxes

What we need to do is reverse this trend.  

• Lower taxes on businesses to encourage more businesses to locate in the city 
• Increase wages for residents and people who live in the city
• Increase the number of businesses which will increase the tax base
• This will in turn lower the % of taxes paid by homeowners