Car registration is dirt cheap (<$100/year), housing is dirt cheap (200k get you a house with a swimming pool), electricity is super cheap (when it is not snowing) and gasoline is almost half price compared to California.
Let's say you bought a house for $100k 10 years in a small town in Texas. People start moving in, but you still only make $50k/year. Now your house is worth $500k. That 1-3% property tax still hits your income.
Further, the big problem here is ridiculous growth in property prices. While obviously some areas do occasionally experience a few years of exceptional growth, it would be dumb to assume that any given area is going to 5x in property value in 10 years. Even if it did in the past, such growth should not be expected to continue in perpetuity. Over the long term, property appreciation rates average around 4% annually, over 10 years you ought to expect a 100k house to go up in value to 148k. By comparison, assuming a 3% raise every year on average and no job changes, someone starting at 50k/yr should be making 67k/yr after a decade. Under such normal circumstances, a 2% property tax with no income tax would have a tax to income ratio of 4% versus 12% for a 10% income tax and 1% property tax. The rate of change in tax to income ratio is better with the income tax, a 2% increase in 10 years versus a 10% increase, but still it takes 166 years for for the high property tax option to overtake the income tax option. While some people may get unlucky (if you can call your net worth skyrocketing unlucky), going with the high property tax option is objectively the better strategy.
https://www.cnbc.com/2021/11/10/home-prices-are-now-rising-m...
Wages for equivalent jobs have been pretty stagnant for the past 50 years, but people personally tend to make more money year over year as they gain experience. Or in otherwords, a 25 year old right now is not much better off than a 25 year old 20 years ago, but a 45 year old right now is likely much better off than a 25 year old 20 years ago.
Looks like most of it comes from sales and excise taxes.
And that's just a random suburb nobody outside of TX has ever heard of.
So what’s the angle here? Things that make you go hmmm…
So they raise your valuation 20% a year (if you're in an avg market). For the last 10 years. And then the rate goes from 1.2% to 1.9% over the same time. And that doesn't even cover highway use, as they've all got tolls now.
With no Prop 13, anyone who picked the right hood as poor or middle class can no longer afford to stay.