Any complete budget must include taxes. In Clayton County, the taxes we pay to the federal government can be found on the IRS’s website. The taxes we pay on our properties are different. They depend on what is decided by the municipality in which we live. They also fluctuate more frequently—and more sporadically—than state and federal taxes. They can go up with little notice, but if you know what to look for and the right questions to ask, you can keep ahead of changes in your property taxes. The easiest way to figure out which property tax changes you may be facing is to check with a property tax service. However, it would be wise to inform yourself of some factors that can cause your taxes to go up.
When Home Sales Increase in Your Area
The principles of supply and demand are the basis of all market fluctuations, and when it comes to real estate, these can affect your property taxes as well. In Clayton County, for instance, if there is a relatively sudden increase in the number of homes that are sold in an area, this will often trigger an increase in property taxes. If an area is seen as more desirable, for whatever reason, the demand for homes in the area will increase. This results in a bump in value for homes in the area.
In the case of the volume of sales an area experiences, potential buyers are more likely to see the area as more attractive by virtue of the fact that others feel the same way. It’s the crowd-thinking mentality. We desire what others desire. Because of this, an assessor can get away with bumping up property taxes using the reasoning that the area is attracting more people due to a higher demand. If you disagree with the assessor’s reasoning, you can find a property tax service that deals with Clayton County, and they can make an argument to the contrary through the contestation process.
New Construction Projects in the Area
Typically, investors will only put their money into construction projects that are going to increase in value. Hence, when a new construction project begins in an area like Clayton County, the property taxes may go up. Whenever something new is built on a property, the value of the entire area goes up. The perception of the people who financed the project and all those who will in some way be patrons of the project is interpreted as a positive sign for the area.
An example would be when a new shopping area is constructed. Starting a project like this typically takes many months or even years of research. The demographic profile of the area is considered. In conjunction with this, the income levels of the people are also factored in. When people make more money, they can afford more things. Their discretionary income goes up, and some of this is going to be spent on goods that could be purchased in the shopping area. The presence of a new retail establishment makes a variety of implicit statements about the income and financial stability of those in a particular area.
Due to this, the property taxes are likely to go up. If you are considering a move to a new area, and there is a significant retail establishment under construction, you may want to check with a property tax service to get their input about how much this may affect your future property taxes. It may not be enough to dissuade you from moving to the area, but it can’t hurt to get some figures to work with. Counties like Clayton that see steady growth are always seen as prospective spots for new construction, and this could mean new property taxes as well.
When the State or Local Budget Increases
Perhaps you’ve visited an area where property taxes are very low. There are many countries in the world where tax revenue in general is low. Some choose to keep property taxes low in order to encourage outside investors to build in the area and stimulate the economy with the other spending they engage in.
You may also have noticed how the facilities and infrastructure in these areas is different than a place like Clayton County. Schools may be older and less technologically equipped. Public buildings or roads and sidewalks may be in need of repair as well. This isn’t because the public officials don’t care about infrastructure; it’s at least partially because they aren’t getting enough revenue from property taxes. In Clayton County, an area that already has thriving infrastructure, it wouldn’t make sense to allow it to backslide. Therefore, the local budget is calculated in a way to make sure the standard of living is maintained—and improved. To fund these efforts, property taxes sometimes have to be raised.
It isn’t as simple as roads and sidewalks, however. Teachers need pay raises, as do firefighters, the police, and even government officials. If there is an increase in the cost of energy, including natural gas, coal, or oil, that increases the costs required to keep Clayton County an attractive place to live and work as well. There are hundreds of factors, and all have to be accounted for using property taxes. However, the increase you and even your neighbors see can be disputed. For that, you can enlist the help of property tax services. The process used to contest property taxes can be complex, and it’s usually wise to get the help of professionals.
Taxes in Clayton County and in most areas of the country tend to go up more often than they go down. However, if you keep an eye out for things that can trigger these increases, you can take steps to mitigate the amount of property tax you pay. In addition, even if the taxes do go up, you can contest the increase in order to make sure you aren’t paying more than you should.
