Quote:
Originally Posted by Bunk
Must also account for population growth. Property tax is calculated from a revenue neutral position. So if population grows by 2.5% and Municipal inflation is 3.0% - property tax revenue must increase by 5.5% to break even.
|
Assuming you're saying the tax rate has to increase by 5.5%, this is wayyy too simplistic. It implies that the population growth does not pay any taxes. If the population growth is 2.5% and as a result property tax revenue also increases by 2.5%, then the % to be charged doesn't need to change.