Property Tax Sticker Shock

[Mai72]

Which is pretty easy to do when payroll is stagnant for the low/middle class. Oh and productivity is up too. Work harder/better but get less purchasing power (income vs costs).

The middle class hasn't seen a true pay increase since the mid 70's. It also seems that most people have forgotten that just a few years ago we went through one of the worst financial crisis America has ever experienced.

It's going to happen again, and when it does the middle class will once again take the brunt of it.

 

[dmcowen674]

It appears that the costs of living in America are spiking at a rate greater than pay raises.

Yes indeed.

Apparently you don't ever look in P&N, this issue has been well documented in there since 2003.

 

[Phoenix86]

The middle class hasn't seen a true pay increase since the mid 70's. It also seems that most people have forgotten that just a few years ago we went through one of the worst financial crisis America has ever experienced.

It's going too happen again, and when it does the middle class will once again take the brunt of it.

People also forget we're in a massive economic recovery. We have recovered GDP but not jobs and certainly not wages. Making more with less people for less money. Corporate profits are way up so stocks are up.

 

[SearchMaster]

You have to be rich to have a house on the lake shore.

I paid $135,000 for the house originally (1500sf, 1.1 ac). I put another $70,000 to double its square footage, and another $9,000 for the 0.4 ac lot in question. So I have ~$214,000 into the house. If that makes me part of the evil rich, then so be it.

BTW, I helped a friend search for weekend houses in my neighborhood two years ago. There were at least a half dozen properties (including houses) for under $200,000. That is below the median and average home price at the time, so I must assume over half the country is "rich" to buy such extravagant houses. I know you're a troll, but not a very good one.

Now, if they increase my taxes by 5x every year, it won't take long to drive me out. I'm not complaining about the assessment on my residence, the overall tax bill is quite reasonable for the services I receive from the county (including educating my 3 children). I'm only complaining about the assessment on the small lot we own adjacent to my primary property, which is overvalued by a factor of AT LEAST 5 and probably 10+.

If you weren't so blinded by hatred of "the rich", you might be able to read a bit better.

ShoNuff, thanks for the link. That's third in my order of options: (1) appeal, (2) have the lot combined with my primary residence as I doubt it increases the assessed value much, (3) file for Conservation Use.

 

[SearchMaster]

UPDATE - the appeal on our secondary lot came back. They lowered the assessed value from $143.7K to $53.8K, and the tax due from $1694 to $589. While $53.8K is still 3-4x the actual value of the lot, this is a much more reasonable assessment. Now we have to decide if we accept this re-assessment, appeal (again, which I suspect will be unsuccessful), or try to combine the lot with our primary residence.

 

[Hacp]

It might be undervaluing the lot. If you can partition your lot and the secondary lot to make two lots that have comparable housing and amenities, then they deserve to tax you till you DROP. More taxes, less freedom.

 

[Mai72]

If you come to NJ get ready to take it in the pooter. Also, get ready to pay a huge increase in property taxes when people start retiring.

I can only imagine what it's going to be like in 20 years.

 

[Mai72]

People also forget we're in a massive economic recovery. We have recovered GDP but not jobs and certainly not wages. Making more with less people for less money. Corporate profits are way up so stocks are up.

This benefits who again?

It doesn't benefit the average person busting their ass on main street. The rich are the ones who are only benefiting.

Are you wealthy?

 

[cbrsurfr]

Property tax assessments should have a claiming rule. If they say it's worth X dollars, you should be able to sell it to the county for that amount.

I like this idea.

Property tax in IL is a joke. I have a rental house in a depressed area where homes sell in foreclosure between 40 and 70K (everyone seems to just be walking away but me), yet my house somehow always comes in at 130-150K. If they do adjust it down they just change the multiplier so you always pay more. The cash value of this house is probably 80K.

My primary house changes wildly from year to year. +900, -700, +750 It makes no sense. I figure eventually I will have to sell as the taxes per month will at some point exceed the P&I. Taxes already make up about 42% of my monthly payment.

 

[Phoenix86]

This benefits who again?

It doesn't benefit the average person busting their ass on main street. The rich are the ones who are only benefiting.

Are you wealthy?

Where did I say was a good thing? I was highlighting the problem.

 

[SearchMaster]

Property tax assessments should have a claiming rule. If they say it's worth X dollars, you should be able to sell it to the county for that amount.

There was a story in the Atlanta area (Woodstock, IIRC) about 20 years ago where the county had continued to raise the assessed value and taxes for a small farm to the point that the farmer couldn't afford to live there any more and began the process to sell his property. Then the county claimed Imminent Domain to take his property, and offered less than 10% of what the latest assessment had been.

My county's "soak the rich" policy this year pisses me off but that story of the farmer absolutely infuriated me.

 

[Jimzz]

Mine went from $172k in 2000 to $476k in 2014. Jumped over 60k the last year. Its now higher than during the housing boom.

But they raised everyone's on my road the same amount so no chance of appeal.

 

[dmcowen674]

There was a story in the Atlanta area (Woodstock, IIRC) about 20 years ago where the county had continued to raise the assessed value and taxes for a small farm to the point that the farmer couldn't afford to live there any more and began the process to sell his property. Then the county claimed Imminent Domain to take his property, and offered less than 10% of what the latest assessment had been.

My county's "soak the rich" policy this year pisses me off but that story of the farmer absolutely infuriated me.

Awesome

Americans deserve every bit of this "soaking".

It's Eminent Domain and what did Woodstock do with that farm, a new Courthouse?

 

[meltdown75]

Property assessor here

I work in Ontario (Canada) so I am not familiar with the US system. I am sure it varies state to state, as it does in our provinves.

Ontario's system is based on market value, and the onus is on us to prove that it would sell in the given market for what we have it valued at as of a specific valuation date.

I've seen my fair share of appeals for all types of properties, but after 15+ years in this business, I still have not seen an appeal where we couldn't reach an agreeable value.

 

[alkemyst]

Property taxes are a complete joke. Its just another way for the government to steal from you every year... + some extra % they feel like taking to remind you whos in charge.

You understand that federal taxes don't apply to local areas, right.

Schools and roads don't build themselves for free.

 

[McLovin]

Mine went from $172k in 2000 to $476k in 2014. Jumped over 60k the last year. Its now higher than during the housing boom.

But they raised everyone's on my road the same amount so no chance of appeal.

Jesus christ. I'm all for making extra money, but how the hell are you supposed to budget for that type of increase?

 

[alkemyst]

Jesus christ. I'm all for making extra money, but how the hell are you supposed to budget for that type of increase?

There usually has to be home sales that back up these increases...so the option is to sell and move.

They do this in our ocean/intercoastal front areas a lot to force out old families that don't keep up with their neighbors.

There was a half acre property pretty much surrounded by $15-20MM homes and the dwelling value was only about $150k. They re-assessed it and the value of the land went to $6MM forcing those owners out.

 

[McLovin]

I get if someone wants a million dollar house on the beach, they should be able to build it, but if I'm content with my "dinky" $150k house and I'm not a complete slob that leaves the house In disrepair, why should I be forced out?

$6 million is a nice sale for a small invest obviously, but if I was living on the beach, not sure you could talk me out of it.

 

[cabri]

I get if someone wants a million dollar house on the beach, they should be able to build it, but if I'm content with my "dinky" $150k house and I'm not a complete slob that leaves the house In disrepair, why should I be forced out?

$6 million is a nice sale for a small invest obviously, but if I was living on the beach, not sure you could talk me out of it.

Taxes paid on your $150K house is much less than the taxes paid on the $1M.

So with a "normal" ratio of 80/20 means for a $1M house the land should be worth 200K.

So the tax people way of looking is the property should be taxed at a 200K lot value and a 120K house value.

 

[alkemyst]

I get if someone wants a million dollar house on the beach, they should be able to build it, but if I'm content with my "dinky" $150k house and I'm not a complete slob that leaves the house In disrepair, why should I be forced out?

$6 million is a nice sale for a small invest obviously, but if I was living on the beach, not sure you could talk me out of it.

They didn't want to leave either. They were one of the original families there (the original's worked for a millionare).

This is the way it works though when you have really old property at below rate.

All the homeowners there voted for a re-assessment across the board so instead of just going up whatever percentage limit there is per year, everyone was hit with current value.

The wealthy there have more money then they need in several lifetimes. It just forced the other family to have to sell out.

 

[eng2d2]

People also forget we're in a massive economic recovery. We have recovered GDP but not jobs and certainly not wages. Making more with less people for less money. Corporate profits are way up so stocks are up.

Not only corporate profits are pushing stock higher. The stimulus and making bonds less attractive.

 

[alkemyst]

Taxes paid on your $150K house is much less than the taxes paid on the $1M.

So with a "normal" ratio of 80/20 means for a $1M house the land should be worth 200K.

So the tax people way of looking is the property should be taxed at a 200K lot value and a 120K house value.

As land value scales up, the dwelling/construction part becomes the lesser item many times.