Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Connecticut's Coming Crash


$1 billion of one town's property value lost in decade-long rout.

Half the town is in for a surprising tax hike in the New Year.

Critical moment for staying competitive before it is too late.

What happens when a town’s revenue base declines for a decade while the government goes on a spending spree?

We’re about to find out.

Home Value Rout

For revenue, New Canaan’s government relies on taxing property. That property is getting reassessed much lower—with a proposed assessment decline of more than $500 million representing a fair market value loss of almost $750 million. On average, more expensive homes have declined the most, with the assessment of homes previously assessed at between $2 million and $5 million declining by 10 percent. At the same tax rate, those property owners will pay for a smaller percentage of government spending as a result of that decline. A majority of New Canaan homes were previously assessed at under $1 million. Their new assessment shows an average 2 percent decline. These 4,200 New Canaan property owners are about to get hit with a tax hike necessary to pay their greater share of the tax burden combined with the greater government spending. Many rates will increase by more than 10 percent.

Click here to keep reading...