Housing Bubbles Spawn Property Tax Increases

Reassessed properties based on new sales prices for all the new owners. And for those who do not cash in and sell, rising assessments on the "value" of their property, and a much higher tax bill.

There are alot of overleveraged buyers and fixed income people that are already borrowing against their homes just to pay their property tax arrears.

Those that own condominiums have seen their HOA's rise as well, and they are caught in a conundrum, pay the mortgage first, then property tax or pay the HOA.

In most of the bubble areas, these situations are evidenced by the increasing number of defaults being filed with "low" dollar amounts.

The low dollar amount in the condos attests to the arrears of HOA or property taxes; in single family homes, its the property taxes.

See: The Dark Side of the Boom - Cnn Money
http://money.cnn.com/2005/01/11/real_estate/prop_taxes/index.htm

See: Tax Revenues and Budget Deficits - February 17, 2005
http://naybob.blogspot.com/2005/02/tax-revenue-and-budget-deficits.html

See: Vegas Property Tax Revolt - Las Vegas Review Journal
http://www.reviewjournal.com/lvrj_home/2005/Jan-19-Wed-2005/news/25692050.html