Property taxes are pretty simple. Your regional government figures out how much money they need to run all the services they provide - roads, water, trash collection, schools, etc. Then they divide that number by the houses in the area. That’s the tax rate.
So if the housing market crashes and every house halves in value, that doesn’t mean your tax bill gets cut in half - it won’t change at all. But, on paper, your tax rate just doubled.
Where this does come into play is that not every property is worth the same amount. So if your home drops or increases in value relative to other homes in the area, then you’ll see your personal tax bill amount change. This kind of thing usually happens if something develops in your neighborhood. They built a prison? Property value probably drops. They built, I dunno, a golf course? Probably increases.
Probably not.
Property taxes are pretty simple. Your regional government figures out how much money they need to run all the services they provide - roads, water, trash collection, schools, etc. Then they divide that number by the houses in the area. That’s the tax rate.
So if the housing market crashes and every house halves in value, that doesn’t mean your tax bill gets cut in half - it won’t change at all. But, on paper, your tax rate just doubled.
Where this does come into play is that not every property is worth the same amount. So if your home drops or increases in value relative to other homes in the area, then you’ll see your personal tax bill amount change. This kind of thing usually happens if something develops in your neighborhood. They built a prison? Property value probably drops. They built, I dunno, a golf course? Probably increases.
What country does it what way? It is refreshingly logical