tag:blogger.com,1999:blog-32639162.post4873878929866931737..comments2023-12-07T01:00:56.264-05:00Comments on My Wealth Builder: How Taxes are Increasing for the Not-So-RichSuper Saverhttp://www.blogger.com/profile/11172939501208456194noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-32639162.post-82615990127071918912009-06-14T21:12:07.428-04:002009-06-14T21:12:07.428-04:00I have no idea how assessments and property taxes ...I have no idea how assessments and property taxes work in your area, but a three-year moving average is used in many places to calculate property taxes.<br /><br />Assessments for the most recent three years are averaged and then the tax rate is applied to this average.<br /><br />The reasoning for this was that property values and assessments tend to rise over time, and using a moving average would slightly delay the rise in taxes, as the moving average would generally lag behind current values.<br /><br />e.g. Year 1 $100K, Year 2 $110K, Year 3 $120K - your current assessment would be $120K but the property taxes would be based on the moving average of $110K.<br /><br />The downside is that in a falling real estate market, the moving average does not drop as fast as does your current property value or your assessment, making your property taxes seem 'stuck' at some unreasonably high level.terrynoreply@blogger.com