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Assessment limits make many homeowners worse-off

July 18, 2007

In the July issue of Land Lines, two UIC economists show how limitations on the increase in real estate tax assessments not only fail to protect all homeowners, but actually cause many of them to pay more tax than they would in the absence of the limitations.  It’s simple mathematics, say Richard F. Dye and Daniel P. McMillen.  If the total tax take does not decrease, then those with relatively small increases in home value– not protected by assessment caps– end up paying a larger share to make up for the absence of assessments on the full value of homes in areas where values are rising rapidly.

This is despite the fact that business’ share of the tax burden grows.  And it has nothing to do with TIF’s.  Well, I guess TIF’s worsen the situation further, but that isn’t discussed in this article.

Land Lines comes from the Lincoln Institute of Land Policy.  They provide free subscriptions in hard-copy.  Or you can download it without charge, but they want you to register.  You can probably avoid registration by using bugmenot.

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