Quote:
Originally Posted by Parallex
Yes... but the high vacancy rate affects the assessed value no? So it's not that there isn't an owner to pay property tax but that the assessed value (and consequently the amount of tax gleaned from) is lower. If your building had an assessed value of say $10M but as a result of lower demand/over-supply the value drops to $6M... that's $4M dollars that the city won't be collecting tax on.
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Not really - the market value is more used to determine how much of the pie the property has to pay. Let's say the total property taxes to be collected last year and this year is $2.00, $1.00 between two properties. If this property was $10M, and the other property was also $10M, and both have a new assessed value of $6M, both would still pay $1.00. The mill rate used, which is multiplied by the assessed value, would go up proportionally. If one property went to $5M, and the other went up to $15M, the first would pay $0.50, and the second $1.50.