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September 17, 2007



I am very interested in how long it will take local governments to acknowledge the new property values in assessments after these sales. I expect a lot of governments to drag their heels, and then either have to dramatically increase tax rates or face significantly lower tax income.


You would be right in expecting governments to drag their heels, for they would be sacrificing a lot of new found revenue by marking to market the downside as fervently as they were willing to catch the upside.

I think an increase in tax rate will be politicial suicide in manyclimates right now, and with a slowing economy, the prospects of lower tax revenue will cause the populace to turn against the pols due to lesser delivery of services, which will have a definitive lag. Thus, this may be the way out for those who will be moving up, laterally, or otherwise out of their current position.

newport coast homes for sale

This is, in my opinion, a (probably necessary) act of extreme desperation that clearly demonstrates how much trouble these companies are in.

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