Tuesday, November 18, 2008

Setting caps

I'm not necessarily opposed to this proposal, but it seems to be another indication that the state government - run by supposed local control, small government Republicans - will take action to restrict the jurisdictions of local governments.

Granted, no one likes to see their property bills rise, and it's true that many assessments are completely out of whack with what's happening in the market. My concern, though, is that capping the levels at either three precent or the rate of inflation might artificially deflate assessments in times of growth.

For instance, what happens if one area of a community becomes a desirable location and is fueled by high-end development and increased demand? Surely its values might increase at a rate higher than the rest of the community, right? Is there a mechanism in place in the existing proposals to cope with a scenario like this?


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