It’s happening to you and you might not even know it. Your taxes are increasing everywhere, but it’s being done without tax rate increases. How can you be forced to pay thousands more every year and your tax rate stay the same?
What’s happening is the base of how taxes are calculating is changing. In other words, more items are subject to tax and less items are deductible
You might have already noticed in your own home state how more things are subject to sales tax. Look for more here as the Internet tax issues heat up. Some states are taxing services now. Other states like Nevada charge sales tax on shipping and handling. Read the fine print – you may be paying more in taxes then you ever have before and the tax rate never changed.
The federal govt is doing it too. In fact, the GAO (General Accounting Office) just issued a new report on Property Tax. They feel there are BILLIONS just laying around here.
The strict interpretation of property tax deductibility is that property taxes may be deducted as long as the property taxes are being spent at the local level for maintenance. You don’t get a deduction if they are spent for a project that will improve the value of your property. So, if the money goes for new roads and sidewalks, no deduction for you.
Look for new reporting requirements for governments and lenders. And look for less of a deduction and more tax for you.