As with everything the COVID-19 pandemic has touched, property tax revenue is something that has also been affected. Property taxes are the taxes you will pay on a property, but things have been changing slightly thanks to the uncertainty and turbulent nature of the last few years.
Keep in mind that there are some positives, but there are more negatives, unfortunately. Make sure you’re aware of what’s going on so that you’re not surprised by anything when tax time comes around!
The great news is that those companies or commercial property owners who might be a bit late on their taxes are still seeing the benefits of the shift from the previous fiscal year. Those taxes have been paid, meaning that revenue tax hasn’t yet changed despite the lowering of home sales in the past few years.
However, if this year follows the last few, there will be an increase in the number of homes that are sold in the latter half of the year, which can be recognized as an income increase for the taxes that will be due in 2023.
Not all things have been great, however. The pandemic has suppressed the inflation level (which had already been quite low), which changed the percentage you will be charged due to the inflation factor that’s applied to the tax roll. For many people who are in charge of commercial properties, the higher the number of the inflation rate, the higher they’ll receive in growth value (which is a type of income). However, if inflation remains low, the growth rate will also remain low, which will eat into your potential profits.