@1
Wrong again.
If I build a large and expensive home, my neighbors’ taxes do not rise.
Property tax mill rates are set for the municipality and applied based on government formula for assessed/market value.
The value of the other homes does not increase because a more expensive home is built on the block. In fact the market value/assessed value of what was once the premier house on the block may fall, leading to lower taxes.
Example:
There are 8 building lots on a street. 4 houses exist, all 4 bedroom 3 bath, 9 room colonials on 1 acre lots with 2 car garages, central air. Market value $550,000 each. 4 New Mcmansions are built on the remaining lots: 6 Bedrooms, 5 baths 12 rooms,3 car garages, central air, granite kitchens, built in swimming pools, They sell immediately at $925,000 each.
The existing houses will see their market value fall 10% because they don’t have the features of the new larger homes on the block, Their taxes will also fall.
I spent many years in Town Government, including 4 years on the Board of Assessment Appeals Newer, bigger and better can drive down the prices of existing housing stock and then their taxes fall as well.