quote:
If the market slows and not enough homes are being sold to be reassessed and taxing entities have to raise the tax rates - do home owners with fixed values pay the new rate?
The APPRAISED value would be fixed for the time of ownership on residential properties. Other states have done this as I've mentioned above. The tax rate could still go up, but that has to be approved by voters, so in theory they know what they're getting (new schools etc.)
And even in 2006 during the worst of the housing crisis mortgage meltdown houses were still appreciating in our area. We had zero deflation of prices or bubble bursting. All that happened here is that potential buyers were vetted better and you actually had to start putting money down rather than financing 100% - but we never had any price depreciation.
This market varies from strong to impossibly strong. Overpriced houses sell within hours with multiple offers. (Note I say overpriced from the perspective of building a house vs the market price; the market would argue that if you can find a willing buyer, then nothing is 'overpriced')
The point is that America and Americans are largely used to their largest asset being their house. And from the mortgage interest deduction and the vision of the american dream, most people buy the nicest house they can barely afford including Principle Interest Insurance and Taxes, but to have the taxes go up and cost people another 100 - 200 dollars per month is literally pricing people out of their homes.
And for those who say "you'll get it back when you sell" is little comfort. That is an unknown event, and at unknown time. Most folks need that couple hundred dollars a month now.