Property Taxes

[Aimster]

2008 Property Tax: $4,000
However, I am buying the place at 1/2 the value of the 2008 Property Tax (value that they say the house was worth in 2008).


I am trying to compute how much property tax I should add to my mortgage. Should I go by the 2008 numbers?

 

[AndrewR]

Originally posted by: Aimster
2008 Property Tax: $4,000
However, I am buying the place at 1/2 the value of the 2008 Property Tax (value that they say the house was worth in 2008).


I am trying to compute how much property tax I should add to my mortgage. Should I go by the 2008 numbers?

Hmm, that's a good question. I know that our property tax for this year will be at our purchase price and not at the previously appraised value (purchase price was higher b/c the assessment was old). However, I would be surprised if the county/city would allow a lower value to replace the appraised value simply because that means giving up revenue, which any government entity is extremely good at avoiding.

I'll be interested to see an informed response.

 

[mugs]

You should assume that you'll pay at least what the owner paid last year, and you should assume that it will go up every year. Don't buy the house if you can't afford the mortgage + last year's taxes + more.

I mean, it may go down, but local government budgets don't get smaller just because the house values dip. The assessed value is not tied directly to the purchase price or the appraised value either.

 

[dbk]

http://www.fairfaxcounty.gov/dta/realestate_faq.htm

 

[Whoozyerdaddy]

Your mortgage will be based on last years property tax. Buy it anyway. Then file a complaint with the property tax office to have your assessment reduced based on the sale price. Where I'm from, property tax assessments are levied well below market value to prevent the tax assessor's office from having to deal with massive numbers of complaints.