Where does all the money go? You would think with the appreciation in housing over the last 7 or so years local authorities would be swimming in cash....
2007-09-09 11:15:49 · 3 answers · asked by Ian W 1 in Business & Finance ➔ Personal Finance
house valuation is tied closely to inflation and demand, isnt it?
2007-09-09 11:34:27 · answer #1 · answered by Smartass 4 · 0⤊ 0⤋
depending on where you live the money goes different places. property taxes are based on home valuation instead of inflation because in most areas the valuation will higher (faster) than inflation. when I lived in San Antonio, 50% of my property taxes went towards the school district as Texas doesn't have a state income tax so they have to have other means in raising money for schools. you also have to place into consideration that there are roads to maintain, state government buildings to keep up, etc.......so it's very doubtful that they are "swimming" in cash. I'm sure that much of the overage the city has from income coming from property taxes goes towards current debt and projects, the rest goes towards future city improvement. unless there are corrupt city officials ;)
2007-09-09 11:26:02 · answer #2 · answered by phiber101 2 · 0⤊ 0⤋
Typically property taxes fund schools, fire and police departments. Of course, there's roads, water treatment, sewage and drainage systems ...
Plus the tax appraisal tends to be a whole lot less than the fair market value.
2007-09-09 12:02:32 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋