Property taxes are a reliable way for local governments (cities, counties, and other tax authorities) to collect tax money from its residents, which they use for public schools, libraries, parks, fire departments, etc. In many levels of government, property taxes account for 30% of all revenue. Most tax authorities take their local budget and assessed market values of all properties and determine a tax rate. Then every homeowner pays their share based on this rate and their home value.

Some states, like California, have a different system in place due to its Proposition 13, which capped the amount of property tax at 1 percent of actual sale price, with no more than a 2 percent valuation increase in any given year.

So what is the shocking absurdity about property taxes?

Well, think about it this way…

The amount of money “required” to run the services that property taxes pay for should not increase significantly year to year. Yet they do.

So when the local governments increase the budgets (for no logical reason) like clockwork, the homeowner will often end up paying more in property taxes, even if their home’s value declines.

Their assets decrease and their liabilities increase!

Another horrible fact is that when other sources of tax revenues decline (like when the economy tanks), the taxing authorities must turn to their tried and true, gamed tax source known as property taxes!

Homeowners must also battle incorrect real estate assessors and be burdened by the assessment lag. Some places only assess every 4 years.

Another government scam to punish those that work hard and try to succeed!

News Update: See what counties are pillaging its residents with the highest property taxes in the country.