One – Housing property values have decreased between 15 and 30 percent.
Two – The costs of energy, supplies and labor are increasing at a high rate.
Three – The loss of the AES Thames plant reducing tax revenue significantly.
Four – Unemployment and underemployment are rampant and incomes have decreased or ceased.
It should be noted that there are no relationships between property tax mill rates, the town budget, and the ability of people to pay the tax.
On the face of it, the reduced property values would seem to be good news in relation to property taxes. The lower the property assessment, the lower the taxes, right?
The budget is the budget. It is driven by the costs of energy, supplies and labor. The costs of energy and supplies can be mitigated somewhat by careful shopping. The only significantly controllable variable in the budget is labor. However, labor costs are driven by unions and are essentially uncontrollable unless drastic measures are taken and the town is prepared to deal with the consequences (strikes).
In that the town government is controlled by the Democrat Party, it is doubtful that the government will do much, if anything, to contain costs and the citizens will see the usual percent increase in the amount of the budget. That increase will be dominated by the increase in labor costs mostly precipitated by the Board of Education.
The revenue normally generated by the property tax will decrease, assuming no change in the mill rate, by virtue of the decrease in property values and the “loss” of the AES Thames property. The AES property will still produce tax revenue because of the land but the valuation will decrease once the generation plant equipment is removed and the structures are torn down.
To accommodate the budget, the town will adjust the property tax mill rate to generate revenue sufficient to match the budget requirements. In making this adjustment, the town government will not take the ability of the citizens to pay the taxes into consideration. The ability to pay has simply no bearing on the problem. The lack of the consideration of the ability to pay is built into the basic tax structure and frankly, the Democrats don’t care. If one can’t pay, the town simply sizes the property and evicts the owner (of course that further reduces tax revenue which further exacerbates the problem).
The citizens of the town should standby for a huge increase in the property tax mill rate to compensate for the decreases in property values and the loss of revenue. Taxes will increase as a result.
The average monthly Social Security retirement check is $1183.50* before income tax (if any) and Medicare premiums ($99.90). The 2011 tax on a property assessed at $250,000 was $5750. For the retired worker who has the misfortune to own that property in Montville
For the unemployed, the situation is even worse.
It will be interesting to see if the Democrats have any sensitivity at all for the people who have to pay the taxes.
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