can someone explain why property taxes are tied to the value of the home?

[rivan]

Seems some places like NoVA have centralized schools that still do well - it's working out ok for them. I wonder if it really relieved their tax burden though.

Without knowing for sure, I'll go ahead and hazard a guess that it didn't do anything positive for their taxes.

Surely the new centralized system looked at their combined budget and simply spent it. As is the mantra for everyone's budget everywhere (not just government) - spend it or you'll lose it.

 

[Capt Caveman]

Some people still think they actually own their property, a foolish notion at best.

You want police, fire, roads, schools, services, etc? You could move to a place without fire service and end up like that guy that had his house burn down b/c he wasn't willing to pay for fire service from the neighboring town. He doesn't own a house anymore, just some land.

 

[xj0hnx]

There's nothing fair about it. You could own a low rent shithole for years, and have property values price you out of a house you already paid for.

Not only this, but our county GOP chairman's house, same as everyone else on his block, but he property tax is about 30% less than all his neighbors. Nope, no good ol' boy, buddy system happening here. It a bullshit tax, and means you don't actually own your property.

 

[bignateyk]

Illegal? It's probably the most fair of the taxes we have.

The propery tax is complete bullshit. It forces long time residents out of their homes when land values skyrocket.

 

[holden j caufield]

You should be more angry that they probably appraise your house for 20% more than you could ever get for it!

My grandmas house was appraised at like 320 or something ridiculous... they gave her a deal for 280 after some complaining but the house is probably worth more like 260.

Banks who appraise your house should be on the hook for their expert appraisal. If they say it's worth 320k, you should be able to say Sold. Give me 320k and I'll give you the deed.

 

[Ausm]

The propery tax is complete bullshit. It forces long time residents out of their homes when land values skyrocket.

It didn't force me out of my house.

 

[bignateyk]

It didn't force me out of my house.

Congratulations. You probably own a standard house out in the suburbs.

Go talk to the people who had a house on the beach in southern california 30 years before it was worth anything. They might have paid 20K for it a few decades ago, and now they have to pay property taxes on a multimillion dollar property. Meanwhile they probably make minimum wage.

How about the people with hundreds of acres of land that suddenly happened to skyrocket in value?

Why should they be forced off their land because the property taxes are suddenly more than their yearly salary?

 

[Ausm]

Congratulations. You probably own a standard house out in the suburbs.

Go talk to the people who had a house on the beach in southern california 30 years before it was worth anything. They might have paid 20K for it a few decades ago, and now they have to pay property taxes on a multimillion dollar property. Meanwhile they probably make minimum wage.

How about the people with hundreds of acres of land that suddenly happened to skyrocket in value?

Why should they be forced off their land because the property taxes are suddenly more than their yearly salary?

Same problem happened in Las Vegas and Southern Florida.

 

[IGBT]

it's the tax payers fault for allowing the gov.parasites to go beyond a tightly controlled greatly difficult to change "flat tax". So now you never really own your property and have to pay the parasites what ever they deem based on a formula they control.

 

[mugs]

never mind that I think property taxes should be illegal... that's another thread.

but why on earth would they be tied to the value to my home?
does the value of my home have to do with how much social services I will consume?
If the value of my home goes up, do I automatically start having more kids that will go to school?
does crime go up and I will require more police protection?

It's an easy way to make it a progressive tax.

Illegal? It's probably the most fair of the taxes we have.

Probably one of those idiots who thinks you don't actually "own" something if you have to pay tax on it.

 

[rh71]

You want police, fire, roads, schools, services, etc? You could move to a place without fire service and end up like that guy that had his house burn down b/c he wasn't willing to pay for fire service from the neighboring town. He doesn't own a house anymore, just some land.

wow, link to that story? Does he not pay homeowner's insurance either?

Banks who appraise your house should be on the hook for their expert appraisal. If they say it's worth 320k, you should be able to say Sold. Give me 320k and I'll give you the deed.

Here, banks only appraise when you're buying a house and that's just so they can see there are no shenanigans going on with the money exchange. The realtor sort of urges them to agree that it's worth the amount it is selling for by showing comps and you have yourself an approved sale. And only applicable if there's a loan involved.

The appraisal applicable to property tax is done by the county who then multiplies that assessed value by the town's tax rate for individual items (ie. library, school, waste disposal, etc.). That's exclusively where the tax figure comes from. Am I missing something?

 

[1prophet]

It didn't force me out of my house.

That is the type of response I expect from a conservative Republican when looking at those struggling to make ends meet

 

[Capt Caveman]

wow, link to that story? Does he not pay homeowner's insurance either?

http://forums.anandtech.com/showthread.php?t=2110626

 

[torpid]

Congratulations. You probably own a standard house out in the suburbs.

Go talk to the people who had a house on the beach in southern california 30 years before it was worth anything. They might have paid 20K for it a few decades ago, and now they have to pay property taxes on a multimillion dollar property. Meanwhile they probably make minimum wage.

How about the people with hundreds of acres of land that suddenly happened to skyrocket in value?

Why should they be forced off their land because the property taxes are suddenly more than their yearly salary?

I have a hard time feeling sorry for someone who makes minimum wage but could be a multi-millionaire just by selling their house.

 

[Anarchist420]

property taxes are tied to the value of your home in name only. The state/city knows what it wants to squeeze out of you, and is more than happy to adjust the taxes accordingly to make sure they get it. I remember when we were in Virginia 2005 - 2010 and thinking to myself - well, it sucks my home has lost half its value, but at least I'll save on my property taxes. Wrong. Assholes just increased the tax % rate on everyone so the state was still making roughly the same.

Exactly... value is subjective, so the "assessed value" and the rate applied to it are both arbitrary. My county in VA has been raising the rate while dropping the value and spending more. Surprisingly, my county has been running surpluses for at least 2 years and paying the debt down (although they should just repudiate the remaining debt).

 

[Ausm]

That is the type of response I expect from a conservative Republican when looking at those struggling to make ends meet

LOL I disagree with much of the Republicans Ideology but the reason why house prices are the way the are is because of market forces which the Republicans....LUUUUV!

 

[cbrsurfr]

I don't mind taxes based on the value of my home but at least get the value right and don't change the multiplier to negate a lower assessment. My current house was finally reassessed at a lower amount (about 15% lower), but that's still at least 20% higher than I could currently sell it for. On top of that my taxes still went up despite the 15% lower assessed value because they just increased the multiplier.

 

[PingSpike]

Congratulations. You probably own a standard house out in the suburbs.

Go talk to the people who had a house on the beach in southern california 30 years before it was worth anything. They might have paid 20K for it a few decades ago, and now they have to pay property taxes on a multimillion dollar property. Meanwhile they probably make minimum wage.

How about the people with hundreds of acres of land that suddenly happened to skyrocket in value?

Why should they be forced off their land because the property taxes are suddenly more than their yearly salary?

I thought California had some crazy thing where the property tax could go up no more than 1-2% a year? (Prob 13 or something?)

 

[Pulsar]

I thought California had some crazy thing where the property tax could go up no more than 1-2% a year? (Prob 13 or something?)

Many places do. Michigan does as well. It prevents the exact situation some others were talking about where people are forced out of their houses by over taxation. It's limited to a very small percentage increase based on the original value of the home when purchased.

On top of that in Michigan, and likely in many other places, you can take your tax accessment to your local board / government accessor etc and challenge them on it. If you can back up yourself with data by showing neighbors, sales of similar houses, and other information then then they can be forced to move it to an appropriate value.

I wonder how many people here complaining about their property taxes have truly ever bothered to educate themselves. It's so much easier to just complain.

 

[ShawnD1]

On top of that my taxes still went up despite the 15% lower assessed value because they just increased the multiplier.

It's either they jack up the taxes to pay for shit or they fire all the police officers and let minorities rape your children.

I had a similar conversation with my dad (sans rape). The province is losing money like crazy because the economy is still down, but he refuses to admit that taxes need to go up. He voted for the party whose platform was "credit card = free money!!!"

 

[Bateluer]

property taxes are tied to the value of your home in name only. The state/city knows what it wants to squeeze out of you, and is more than happy to adjust the taxes accordingly to make sure they get it.

I remember when we were in Virginia 2005 - 2010 and thinking to myself - well, it sucks my home has lost half its value, but at least I'll save on my property taxes. Wrong. Assholes just increased the tax % rate on everyone so the state was still making roughly the same.

Nearly the same thing here. My tax appraisal form actually had two values, the market value of the house and the vale of the house for tax purposes.

 

[Destiny]

Congratulations. You probably own a standard house out in the suburbs.

Go talk to the people who had a house on the beach in southern california 30 years before it was worth anything. They might have paid 20K for it a few decades ago, and now they have to pay property taxes on a multimillion dollar property. Meanwhile they probably make minimum wage.

How about the people with hundreds of acres of land that suddenly happened to skyrocket in value?

Why should they be forced off their land because the property taxes are suddenly more than their yearly salary?

No... that is not true! If you bought your California house before 1978 I think (correct me if I'm wrong) you are protected by state law and only have to pay property taxes based on the value what you purchase the house back then... but if you refinanced your house after that year you're are basically screwed!

Basically property taxes is a for sure way to generate revenue for state, local, and federal gov't. Where some states have low income taxes, their property taxes are HIGH! I found out california property taxes is lower than some states.

Even if your house is paid off - if you stop paying poperty taxes the gov't seizes your home and sells it to someone that can pay the property tax. That is why you are never truely an OWNER (If you are, no one can take it from you). It's Real Estate 101 (You never OWN your property or home, you only own the RIGHT to access it and use it and you can SELL that RIGHT to someone else).D:

 

[DCal430]

I thought California had some crazy thing where the property tax could go up no more than 1-2% a year? (Prob 13 or something?)

Only the ad valorem portion is restricted to a 1 to 2% increase, there is also a flat and square feet based tax that can increase by any amount each year, each increase requires a 2/3s vote though of the area.

 

[DCal430]

No... that is not true! If you bought your California house before 1978 I think (correct me if I'm wrong) you are protected by state law and only have to pay property taxes based on the value what you purchase the house back then... but if you refinanced your house after that year you're are basically screwed!

Basically property taxes is a for sure way to generate revenue for state, local, and federal gov't. Where some states have low income taxes, their property taxes are HIGH! I found out california property taxes is lower than some states.

Even if your house is paid off - if you stop paying poperty taxes the gov't seizes your home and sells it to someone that can pay the property tax. That is why you are never truely an OWNER (If you are, no one can take it from you). It's Real Estate 101 (You never OWN your property or home, you only own the RIGHT to access it and use it and you can SELL that RIGHT to someone else).D:

That is true only for the ad valorem, some places have added on flat and square feet based taxes that amount to thousands of dollars a year.

 

[BlahBlahYouToo]

It's either they jack up the taxes to pay for shit or they fire all the police officers and let minorities rape your children.

you mean jack up taxes to pay for all the OT the police officers put in the year before their retirement to bump their pension pay, while they pull me over for going 35 in a 30 because they have nothing better to do.

yeah, that sounds about right.