During the day, Tracy Price pilots Boeing 737s through the skies.
But when he's not in the cockpit, one of his real passions is trying
to get the property taxes lowered on his colonial in Fairfax
"The increase in my property taxes over the past seven years is
enough money to pay for college for both my sons," says Mr. Price,
who is a member of VOTORS, a grass-roots group pushing for a
Across the country, homeowners are waging revolts as property
taxes post massive gains. Faced with these protests, legislatures
are considering ways to provide relief:
* Besides implementing a two-year cap on property taxes, Nevada
is studying a constitutional amendment that would change the way
property taxes are figured.
* Maine is picking up a larger share of education costs, which
may lower property taxes.
* Voters in New Jersey are trying to force a constitutional
convention that would reform property taxes. The State House has to
authorize the convention.
"Almost every state is looking at some form of property-tax cap,"
says Myron Orfield, an expert on property taxes and a law professor
at the University of Minnesota in Minneapolis. "It's a 'perfect
storm' for property taxes: There are rapidly increasing home values
while states are not keeping up with their contributions to school
The talk of a real estate bubble is causing additional angst
because many homeowners are afraid that their taxes may be based on
a market value that no longer exists. "If northern Virginia is any
guide, when it does burst, no local government is going to trim
spending. They didn't when the value of their housing stock dipped
in late 1989 and 1990," says William Ahern, a spokesman for the Tax
Foundation in Washington.
Some are particularly concerned about the impact of rising home
values on the elderly and those living on fixed incomes. Michigan,
for example, this year increased the eligibility for a tax-deferral
program on the basis of income. "They are expanding homestead
exemptions that may or may not be based on age," says Bert Waisanen,
a fiscal analyst at the National Conference of State Legislatures in
The pressure is particularly intense in some of the nation's
hottest real estate markets. Nevada, for one, last month signed into
law the two-year cap on property taxes, which limits increases to 3
percent a year on single-family primary residences and 8 percent on
commercial property and second homes.
Valued at $60 million
Behind the effort was a tax revolt started by the residents of
Incline Village, a small community on Lake Tahoe, about 35 miles
south of Reno. Property values, particularly along the lake, have
risen at eye-popping speed. Over the past year, the median price of
a home in Washoe County (which includes Reno) rose from the low
$200,000 level to more than $270,000. Along the lakefront, prices
are astronomical: One property is listed for sale at $60 million.
Some residents are paying as much as $75,000 a year in property
"It's a closed development - there is no more developable land -
so people can ask ridiculous prices and get it," says Ted Harris,
chairman of the tax-revolt committee of the Village League to Save
Incline Assets. "I'm retired and on fixed income, and I don't know
if two or three years down the road, I can afford to live in my
Right after it was finished in 1989, the Harris house was
assessed at about $400,000. Today, the assessor says it's worth $1. …