A home that gains value is part of the American dream — except for the taxes. In the past two years, 17 states have lowered or limited property taxes as politicians respond to escalating prices.
The idea is seductive, particularly for longtime residents who benefit most. But just as the perfect home can contain serious hidden flaws, underexamined tax reforms can distort the housing market, deplete budgets and sap local autonomy.
One current example is Florida. As its population has surged over the past decade, home prices and property levies have more than doubled. Taxes have jumped 40% since ...