The Dark Side of Property Appreciation

February 18, 2006

Just a few days ago we reported that the county assessor stated that property taxes would increase an average of 28% in Loudoun County. The County Executive just released his budget that calls for a reduction in the property tax rate from $1.04 to $0.97 per $1,000 of assessed value, a 6.7% decrease. We will get a lower tax rate and politicians will beat their chests saying "what good supervisors are we!" (Thank you mister assessor)

My tax assessment notice came today and here is how it breaks out:

• Land: up 41%
• Building: up 14%
• Total: up 20%

Should I feel good that 20% is better than 28%?

We all gloat in the fact that our property has appreciated immensely. Until, of course, we get our tax bill. Assessments look backwards at property value increases. We have had the good times. I can't wait until next year when my valuation and assessment goes back down because of the sluggishness of the real estate market predicted for 2006. I also predict that hell will freeze this year too. Wait 'till Zillow gets hold of this!

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