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Friday, May 2, 2008
“Faced with revenue short-falls, local governments across the U.S. are raising property-tax rates, angering homeowners already hit by the housing slump and economic slowdown.” - Conor Dougherty, The Wall Street Journal, “Rising Property Taxes Fill Gaps, Pinch Homeowners,” (April 25, 2008).
This article by The Wall Street Journal sites several cities that are raising their property taxes drastically in order to cover municipal revenue short-falls. For instance, Spring Valley, NY is increasing the property tax rate by 9.7% and Memphis, TN has proposed raising their property taxes by a whopping 17%!
According to the article: “Local-governing costs have been growing more quickly than in other parts of the economy because municipalities spend disproportionately on fast-rising items such as building materials, fuel and health insurance. From the fourth quarter of 2006 to the fourth quarter of last year, prices for state and local expenditures rose 6.1% compared with an increase of 2.6% for the broader economy, according to the Bureau of Economic Analysis . . . . Both raising taxes and slashing costs can accelerate the economic cycle’s downward turn. Municipal spending accounts for one-eight of the nation’s gross domestic product and the U.S.’s eight million municipal worker account for 6% of the nation’s employment ranks.”
If you have a subscription to the WSJ’s online service, you may read the full article by clicking HERE.
This article by The Wall Street Journal sites several cities that are raising their property taxes drastically in order to cover municipal revenue short-falls. For instance, Spring Valley, NY is increasing the property tax rate by 9.7% and Memphis, TN has proposed raising their property taxes by a whopping 17%!
According to the article: “Local-governing costs have been growing more quickly than in other parts of the economy because municipalities spend disproportionately on fast-rising items such as building materials, fuel and health insurance. From the fourth quarter of 2006 to the fourth quarter of last year, prices for state and local expenditures rose 6.1% compared with an increase of 2.6% for the broader economy, according to the Bureau of Economic Analysis . . . . Both raising taxes and slashing costs can accelerate the economic cycle’s downward turn. Municipal spending accounts for one-eight of the nation’s gross domestic product and the U.S.’s eight million municipal worker account for 6% of the nation’s employment ranks.”
If you have a subscription to the WSJ’s online service, you may read the full article by clicking HERE.
Labels: Municipal Revenue Troubles
