Actually, no, that is the way property taxes work. If there are 100 homes in a municipality, each worth 100,000 and with a tax rate of 5% (total property taxes of $500,000) and all of the homes depreciate to 50,000, the tax rate MUST increase to 10% to make up the difference.
What you don't seem to realize is that the town has a set amount of money it must raise via property taxes, your assessed value is there to determine what portion you should be responsible (compared to the total assessed value of all property in the municipality).
Do you have to like it? Nope. Should you expect it? Absolutely. If everybody's value drops the rate has to go up otherwise your municipality has a budget deficit.
(FYI, your assessed value going down is always good once you consider that everyone in your town has the same rate. If you want to sell or re-finance your property, you'll have to get your own appraisal done anyway which is usually based on sales of similar properties and not assessed values.)
mugs
Lifer
- Apr 29, 2003
- 48,920
- 46
- 91
Clearly, the town's expenses don't go down when property values go down. The response you're going to get is that the rate stayed the same when values were going up, so the town took in more money. And I have to ask, why wasn't anyone complaining then? Why let the government waste money just because it can? If the town has expenses that are unnecessary, complain about THAT! Complaining about the taxes is silly, because the taxes follow the spending. If you want to reduce taxes, you need to reduce spending.
Mugs is pretty much right on the money here. I just want to clarify something, though. One person's property can go up or down quite a bit without affecting the rate of the town. That is part of the reason you might find that specifically your property has gone up in assessed value without the rate changing. That's because the total assessed value of all of the property in the town is staying in relatively the same place. The rate gets changed by the total, and thats exactly why you usually want your property to go down in assessed value, because you're hoping the rest of the town stays in the same place (or goes up in value) and the rate stays the same (or goes down).
Squisher
Lifer
- Aug 17, 2000
- 21,204
- 66
- 91
The value on my house dropped over $40,000. I figured that my taxes would drop also- but, no. The assessor's office said the tax rate would not change until a year after. What the hell it up with that?
BoomerD
No Lifer
- Feb 26, 2006
- 66,060
- 14,470
- 146
Prop 13 FTW. My taxes can only go up a max of 2% annually...
We paid 132K for the house in 99, it was "valued" at just over $400K 3 years ago, and we're back to just under $200K. My taxes have remained more-or-less the same since we purchased it. The one big increase was when we built a covered patio...cost us about $2,000 to build it...increased my taxable valuation by $6,000.
We paid 132K for the house in 99, it was "valued" at just over $400K 3 years ago, and we're back to just under $200K. My taxes have remained more-or-less the same since we purchased it. The one big increase was when we built a covered patio...cost us about $2,000 to build it...increased my taxable valuation by $6,000.
hanoverphist
Diamond Member
- Dec 7, 2006
- 9,867
- 23
- 76
mine went from 35k 10 years ago to 250k 2 years ago to 88k this year... the market in the neighborhood is still up around 140ish tho, despite the assessor saying its down
isn't it a good thing to have the county assessed value lower? mine is down by $100k, and i had to apply to get it lowered...i was actually fighting for $150,000 lower!
My parents house went up in assessed value by 40% over the last year. It's now assessed at way more than they could ever actually sell it for.
The local gov't/politicos seem to think they're supar-dupar-smart: they tell the public they're lowering taxes (and technically they do). Yet at the same time, they pressure the assessors office to assess property values way higher. Net result -- homeowners pay less tax as a percentage of property value, yet way more actual cash. They also do this to get around Mass's "Prop 2 and a half", which restricts how much municipalities can raise taxes each year. They paid around $4k this year... and that's for a 1/3 acre in one of the most crime-ridden areas of the state. :/
The local gov't/politicos seem to think they're supar-dupar-smart: they tell the public they're lowering taxes (and technically they do). Yet at the same time, they pressure the assessors office to assess property values way higher. Net result -- homeowners pay less tax as a percentage of property value, yet way more actual cash. They also do this to get around Mass's "Prop 2 and a half", which restricts how much municipalities can raise taxes each year. They paid around $4k this year... and that's for a 1/3 acre in one of the most crime-ridden areas of the state. :/
Red Squirrel
No Lifer
Wow here they're only going up. Our house right now is worth way above 200k and think it was like 80k when it was built about 23 years ago.
ultimatebob
Lifer
- Jul 1, 2001
- 25,134
- 2,450
- 126
Yeah, consider yourself lucky! The so-called assessed value of my condo is $20,000 more that what I could actually get for it right now! Double whammy... my home values went down AND my taxes went up :|
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