What Will A Recession Mean For Property Taxes?
What will the next recession mean for your property tax bills and other finances?
More and more analysts are expecting another recession this year. How might that impact your money, home, and taxes?
Recession Or Stagflation?
Bank of America has warned that ‘recession shock’ is coming to America. Several factors are all coming together to try and break the economic run that we’ve been on.
Unfortunately, a recession normally isn’t reported until months after it has kicked in, and the numbers are made public. So, experts may already be seeing it showing up in the data.
A recession is a general downturn in the economy. However, with today’s rampant inflation, a period of stagflation may be more likely than just a recession.
Stagflation is more feared, as it combines a stagnant economy, along with inflation, and rapidly rising prices.
The Side Effects Of An Economic Downturn
Whether it is a recession, depression, or stagflation, these periods are marked by falling economic activity, more crime, higher unemployment, and rapid losses in wealth and investment account values.
More foreclosures would also be likely to add costs to county budgets, resulting in the call for more property tax increases.
Ongoing inflation would mean that everything continues to cost more, including commuting, if you still have a job. Especially around the home. Including mortgage interest, insurances, maintenance, association dues, utilities, and of course, property taxes.
Put simply, it means that the majority of people will experience less money coming in, and more expenses going out each month and year.
Getting Help With Your Property Tax Bill
Rising costs, and income challenges are unlikely to be solved with more borrowing this year. As Home Depot’s founder, and Bloomberg report, the one way that the Fed can hope to get inflation under control is to rapidly hike rates to match inflation. Officially that is around 8.5%. Unofficially, inflation at the cash register is more like 30% to 100%. It will simply be too expensive to borrow, if there is even money available to borrow.
Many may be eligible for some property tax exemptions and discounts. Be sure to talk to a property tax professional about your eligibility for these savings.
At least half of property owners may also find that their property tax assessments and bills are overblown, and higher than they should be. Property Tax Adjusters, Ltd. can help you review them, appeal, and potentially save thousands of dollars each year.