I read an article today in the austin american statesman at statesman.com It was titled Austin property taxes jump 38% over the past decade.
The premise of the article was that Austin's Growth was not paying for itself meaning that its existing residents were subsidizing the growth that the city was experiencing. While not wanting to get into that argument I did notice some interesting info on whether or not based upon the data that was presenting in the article the tax rate actually went up or did the property value go up. If the property value went up does that negate the entire premise of the article?
check out the following picture:
The article had some interesting info about whether the tax rate rose or the property value rose but it did not so the simpliest math to reach the conclusions that it tries to reach.
For example the tax rate in 2000 was 3,147 / 138,674 = 2.27% and the tax rate in 2010 was 5,590 / 261,542 = 2.14% so the tax rate did not go up but actually went down over the 10 year period. What went thru the roof was the property value! Thats right is nearly doubled! I will take paying higher taxes everyday in exchange for a higher property value, because I am gaining in real wealth!. In the article the couple featured saw a tremendous increase in their taxes paid but the property value went THRU THE ROOF!!!
Are your investments going thru the ROOF if not call me to add some real estate to your profolio at 512-782-8982.