With property market values decreasing, the current real estate mortgage crisis, the 7-month backlog in real estate inventory, foreclosures going through the roof you’d think residential property taxes would go down. Think again. Some voices taut a 20-40% decrease in overall real estate market values by the end of 2008. Hopefully that will not happen, but if it did what would happen to residential property taxes?

Just because the housing market is down doesn't mean the government needs less money to do what they do. They are a monopoly and have you at the end of a gun barrel. If Ford or General Motors doesn’t sell enough cars they have the get rid of workers, close plants. Not the government. They have no competition and very few towns have placed residential tax restraints on their towns.

To lower property taxes they could reduce the number of dedicated building or full-time staff and contract with the county, neighboring cities and private firms for essential municipal services, such as plowing and fire coverage … etc

Will it happen by itself? No. The busy body bureaucracy will not voluntarily give up jobs or anything unless tied to a concrete budget anchor that allocates the running of the government to fixed percentage amount. Many lean and trim towns are able to function well on .50 per $1,000 property taxes.

It’s up to the voters to maneuver their way into government by placing, by way of ballot or legislation, spending limits. Iron-barred gates on government spending need to be installed. Hard fiscal parameters that a lean taxpayer effective government will work under need to be in place. Most municipalities in my state are obese; they have no desire to diet, no limits on spending, high voter apathy with foxes embedded in the hen house.