Most homeowners will not benefit from 1 percent tax cap.
With all of the attention being given to tax caps and possibly placing them in the constitution one thing needs to be made crystal clear: Most homeowners have not and will not benefit from the tax cap even if placed in the state constitution.
The Department of Local Government Finance has stated that only 2 percent of homeowners received a credit this year due to hitting the 1.5 percent cap and slightly less than 18 percent exceeded 1 percent, next yearís cap.
The Legislative Services Agency projects that only 23.8 percent of homesteads statewide will see a reduction in property taxes in 2010 because of the cap. For 2011 they project that 28.6 percent will hit the cap. Thus, more than 70 percent of homeowners will not benefit from the caps. The homes most likely to hit the caps, according to Dr. Larry DeBoer, are ìhigher-valued homes in higher tax jurisdictions.î These are the homeowners benefiting from the caps who would enjoy permanency of this benefit should it be placed in the constitution.
There has been much ballyhoo about how virtually all homeowners are paying less property tax than in 2007. However, for most this has nothing to do with caps but is the result of other statutory provisions recently enacted.
Interestingly the "Over 65 Circuit Breaker Credit" does put an immediate limit on tax liability by assuring those who qualify that their tax liability will not increase any more than 2 percent above the previous year. If this is good for the seniors, and permanency is sought, why not have something similar for all homeowners and put it in the constitution?
The only lasting protection for the citizens is to be ever-vigilant regarding its government. In that regard you will find a compilation of information regarding the possibility of constitutional property tax caps at www.castoncomets.org, a site that is administered by this author.
