Another property tax blow on horizon

Now, commercial, industrial site values threaten services
The problem is happening nationwide, but a study by consulting firm PricewaterhouseCoopers and the Urban Land Institute showed metro Detroit will be hit especially hard because of the meltdown of the auto industry. The report listed the metro Detroit market as "abysmal" and dead last nationally in markets to watch for commercial real estate development and investment.
*snip*
To be sure, owners of the commercial property will feel the loss of value. But so will homeowners, who count on that property to help fund services such as police and fire protection, local libraries and parks. The commercial tax hit comes on top of the decline in home values the past two years that already has crippled many municipal budgets. Many municipalities now are trying to figure out just how big of a hit they are going to have to take.

It's not always an easy calculation to make. Some commercial property is subject to tax abatements, and much of it often lies in special tax districts, such as downtown development authorities, which steer tax dollars away from the general funds of local government. While home values are based on the sale prices of comparable houses, commercial real estate can be valued by the income it generates.

www.freep.com...

Just when you think things can't get much worse....they do.
We live in a metro Detroit community that doesn't have a lot of industrial or commercial and the residents bore the brunt of the property taxes, and we alsways sorta, kinda wished we lived in a city with a lot of big businesses.
Wrong.

Michigan is certainly feeling the worst of this "recession".
How bad is it where you live? Morea and more empty storefronts? Half empty malls?
Vacant high rise office building?

reply to post by DontTreadOnMe


Most counties in this country have a timed delay on the actual taxation of the property based on value. The Norm is 2years.. meaning that you are taxed at the properties value as of 2 years ago .. So while the economic crisis has perhaps peaked (we will see) the taxation DECLINE will not peak until 2 years from now. Likewise, in the midst of a recession, the taxation levels will be the highest, as we are taxed on 2007 valuations.. So if you get a letter from the County telling you your house value increased and so did your taxes, don't be surprised.. it's a delay.

What this means is that when we finally pull out of the recession, we could still be in a tax crisis for another 2 years.. as cities, counties and states will be scrambling to pull together cash to keep things operating.

I wonder how bad things will get in Michigan before something drastic is done... who knows, because it's so cheap there it might be the site of the next economic boom. Their leadership doesn't seem top notch though..

Unemployment wise, it is pretty tough. Had two major industries that completely shut their doors. About 1,000 decent paying jobs gone with the wind. There is plenty of competition for what little job openings that are available.

Property taxes will rise slightly. Don't know if it is related, but seems fines are being assessed for the smallest of infractions. What does surprise me is that the restaurants and fast food chains are still getting some pretty good businesses.

I don't believe Texas as been hit as hard as other states.