Although the housing crash has devastated much of the country, Dallas – at least North Dallas – has fared relatively well. But there is a storm brewing.

When 100 percent mortgages were plentiful at 5 percent interest, many found they could purchase a $1 million new-construction home with monthly payments of only about $5,000. Stretched, but seeing a dream realized, families gobbled up the new construction.

Property values climbed, property taxes followed, and Dallas County and other local governments spent money.

Developers moved in and bought up older homes in disrepair, knocked them down and built more new homes, increasing the tax base and taxes. Drunk on their "success" and eager to feed the beast more, tax appraisals increased for older homes, encouraging owners to sell out and make way for new properties with a higher tax base. Decent older homes in good repair also began to fall victim to a trend not isolated to North Dallas. Many Dallas neighborhoods experienced the feeling of living in a construction zone, and the tire repair business flourished.

Ah, but the new homeowners were also hit with a higher tax base and climbing taxes. The Dallas Central Appraisal District, based upon no more than photos of houses, began increasing values to the maximum amount allowable by law.

Their justification for the value was the comparability to the neighboring houses – based upon values also set by DCAD.

Now that $1 million house is "worth" considerably more on the tax rolls. It is possible that some of those new homeowners understood that their taxes would be $25,000 to $30,000 a year, but many have been more than a little shocked.

Consider the baby boomers nearing retirement. The average American has little, if any, savings for retirement.

For the sake of argument, let's say the average North Dallas resident has covered college tuition for his or her children and has $1 million in a 401(k) for retirement.

Most financial planners currently recommend pulling 4 percent per year to live on, or $40,000 plus any miscellaneous earnings.

What happens when those $40,000 retirees find themselves in houses with a $30,000 tax bill? They sell, of course – all at the same time. Some estimates place half – yes, half – of the workforce over 65 by 2015 (only seven years away).

For most of these homeowners, their children will be gone, and they will be sick of maintaining a huge empty house. Their choices? Continue to work to pay property taxes or move.

Sure, for some the property taxes will pose no problem, but many will not be able to – or simply will not want to – pay those taxes.

Large commercial property owners can afford to file lawsuits to contest their property values and taxes. Many commercial owners who were granted large abatements, of course, have no need to file a protest of lawsuit.

Get wise, local governments. Get rid of the budget fat and bureaucrats, because it is only going to get worse.

Betty Meis is a native Dallasite, a CPA and CFO for a Dallas health care provider. Although raised on the west side, she has been paying North Dallas property taxes for 23 years. Her e-mail address is bettyboydmeis @sbcglobal.net.

Collin County

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