When it comes to taxes, sometimes it seems like if it’s not one thing, then it’s another. During the recession, when the housing market was taking a hit due to dropping property values, county tax assessors across the state actually dropped property tax bills in effort to help homeowners. However, now that the state’s economy is improving, the state’s budget analyst believes property taxes could be on their way back up.
Tax Bill Dropped
The good news was that during the recession homeowners saw their property tax bill dip by an average of $1,600, while commercial properties saw an even bigger reduction at $7,500. The bad news is that local government property tax revenues dropped about $7 billion during that time period.
Government Wants Its Cut Again
Now that the economy is on the upswing, local governments want to see that money return. The tax reductions that were enacted during the recession are being rescinded, which means property owners are about to see another hike in their property tax bills. In fact, some homeowners might see an increase of as much as 20 percent.
Keep as Much as You Can
Taxes can seem never ending, which is why it’s always a good idea to get the help of an experienced tax professional who can help you keep the maximum amount of your income as possible. At GROCO, we can help with all of your tax needs.