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The problem is the government would never assess the property at $1,000. At first I was really kind of against "planned contracting" where housing stock is purposefully destroyed because a lot of these places are gorgeous old victorians, but nothing else has worked.
Our property taxes went up significantly because the county used to share it's sales tax 4% with the city and towns (townships- in NYS there is the state, county, and then town levels of government). I live on the edge of the city but not in the city proper, so I live in a town. The county struck a deal with the city to give all the sales tax revenue collected in the county to the city because the city is in financial trouble. There is not much left in the city itself as far as work (many of the businesses have moved out to the suburbs) except for the largest employers: the university and the hospitals. And they don't pay taxes as non-profits.
Anyways, despite all of this, the city is still in financial trouble and the only way I see any way out now is to plan to destroy some of the housing stock, and eventually turn off service to those areas. The only other solution is to get some business into the area, but that doesn't seem to be working either.
Knock it all down and build an oil refinery. At least gas would be cheap.
We have the same levels of government but we took back power from them long ago with Proposition 13. Our property tax is set at 1% no matter what. Every year they are allowed to increase assessed home value by only about 1.5%. It saved seniors from being kicked out of their homes. I know it helped my grandparents.
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