About property taxes....in my opinion, property taxes are one of the biggest swindles ever foisted off onto the middle class. What did my township and county do to help me improve and remodel my property to better my neighborhood? Did they do any work? Did they pay for any materials? I devoted tens of thousands of hours of sweat equity because it was the alternative to paying someone else for work I could do myself, and what happened to my property taxes from 1988 to 2004? They went sky-high, and it ticks me off BIG TIME.
PROPERTY TAXES ARE A HUGE RIPOFF AND A FARCE. I can accept annual increases because of the cost of living adjustments, but to screw over property owners because they go into debt to improve their neighborhood is 100% wrong, IMO.
Suppose my place is worth a quarter million bucks, and somebody buys a minimum size lot next door and builds a crackerbox on it. Who will pay more in taxes, me or the guy next door? Will my kids get better schooling because of the extra taxes I have to pay? Will I get better police, fire, and EMT service? Will the county maintain the road in front of my place better than the road in front of Mr. Crackerbox?
My feelings are, since all taxpayers in a taxing jurisdiction are given equal treatment and equal services by the taxing authorities, EVERY property owner should pay the same amount in taxes, and improving your property should not raise your taxes.
Thanks for letting me have my say.
You are getting screwed over by history and expectations. Once upon a time, property tax was the only tax most people paid, and it was levied against the landed gentry, the "upper class" who could afford to own property. The lower class generally didn't have any money anyway.
The tax didn't pay for much. Roads, bridges and ferries were private, and you paid a toll if you used them. Schools started out private, and when universal education became popular in the 19th century, an 8th grade education was considered adequate. Kids were considered adult by age 13, and were ready to begin an apprenticeship, marry, or get a job in a factory. Jefferson's original concept of universal education had 1/3 of elementary students going on to secondary school, and 1/3 of secondary school students going on to university.
Your property taxes have been stretched to pay for more and more over the decades. Roads, schools, public health and sanitation, jails, law enforcement...the list goes on and on, and rates have increased to cover demand. Some areas of the country pay outrageous property taxes. My brother-in-law grew up in Connecticut in a big old house on the water. He told me property taxes on that property are over $4000 a month.
Oregon had a property tax revolt about 20 years ago. They rolled property tax operating levies back to 1993 rates, and capped increases at 3% a year. I have a 1750 sq. ft. completely remodelled and updated house, deck, gazebo overlooking the creek in the back yard, barn and 93 acres of timber. With the state timber deferral program (taxes paid at harvest on the timber) my property tax is only $1400 a year. Despite dire predictions, the state did not dissolve into chaos, though the voters passed an income tax rate increase a couple years ago that has been a real lifesaver during this depression. It sounds like you should look into revising property tax laws in Michigan.
Anyway, congrats on paying off the mortgage. I finished mine in August of 2008, and being debt free puts a lot more money in the bank account. I just switched to putting the mortgage payment into my retirement account. It's amazing how fast equity builds when you are not being sucked dry by the banking system. :2cents: