I Have a Gripe

April 23, 2011

The Truth About Property Taxes

Let’s face it, paying taxes is far from fun. It is, however, a necessary evil. This money goes to various local, county, state and federal needs and programs to help make sure roads are plowed, police are a moment’s notice away, and children are educated.

Now, we all have programs we want to see supported and ones we want to see cut. For example, I often hear people complain about how the majority of collected property taxes go to support the local school district when they do not have a child in school. There is something important to remember about this potential sticky point. The value of your home is in direct correlation with the quality of the local public education system.

Think back to when you were purchasing your home, what was one of the first questions you asked the agent? “How are the schools here?” Even when you are taken to a property by a real estate agent, they often start off with information related to the school system. They will even steer you away from certain towns because their school system may not be considered “of high quality.” Whether someone has a child or not, the answer to that question will definitely affect real estate buying habits.

Generally speaking, those who complain the most about their property taxes are the elderly and those without children. What the elderly forget is that when their children were going through school, someone else who didn’t have children in school was flipping the same bill. Maybe they forgot that little point. Others who do not have children are also paying towards that same school budget, which will help keep the value of their home up.

Now before you get a knot in your shorts…yes, there are certainly areas where money is wasted in the public schools and yes, as tax paying citizens it is our responsibility to understand what our tax burden is and how it is spent.

Why am I blogging about this? Well, if you live in New Jersey, like me, you know how high the property taxes can be. Due to the high tax burden in this state, many are moving away and some businesses have left for other states with a smaller tax burden. Add to that the current negative opinions of “those greedy, lazy teachers” and their union, there are many on a witch hunt to further vilify the connection between public education and property taxes.

Some also complain that their property taxes are too high. Well, that may be true, however, it is important to remember every home will be assessed differently. Do you live in an urban area or a small rural town? Do you have a McMansion or a small two bedroom colonial or condo? Do you live on the waterfront or on a small piece of property with no “major amenities” to speak of? All these issues are taken into consideration and go into the tax assessment on a property. If you disagree with your assessment, you are completely within your right to challenge it. It is important to remember, however, that if you go from a small house to a giant McMansion, don’t be shocked when you get a major increase.

To steal a line from our President, “let me be clear;” I am far from advocating for MORE taxes. Additionally, I don’t particularly mind paying my taxes. I just want to reduce the amount of waste involved and look at what taxes are being spent on – such as healthcare for illegal aliens. Cut that out and we could save billions.

Ultimately, by spending more time examining how to eliminate waste, instead of going on a wild witch hunt spending money unnecessarily, the taxes collected can go towards important things, like our police, fire department, school systems, infrastructure and more.

Advertisements

Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Blog at WordPress.com.

%d bloggers like this: