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Old 02-20-2009, 04:13 PM   #21
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Gpond, this could be your big chance to "own" rather than rent! The old lemons/lemonade situation. Heh, heh. Why not offer the landlord $375K and then wait out the market? Of course, YMMV.
Caveat Emptor BIG TIME here. Unless they have a Ft. Knox sized reserve fund, watch out!

"Of the 42, 9 are in foreclosure, 2 have been for sale for over 2 year, 5 have been for sale for over 1 year and 3 of them are vacate and are for rent." = soon to be a low collection rate of HOA dues if not already.
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Local governments in big trouble
Old 02-21-2009, 07:25 PM   #22
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Local governments in big trouble

The problem with falling home values is that all the local governments (as well as the state governments) kept increasing their spending as the prices of homes inflated from 2000-2006. Now that home prices are deflating they are faced with either cutting spending or increasing assessments and taxes to maintain status quo. Of course the former option of reducing spending just isn't in the vocab of many politicians, so get ready for higher taxes. Still quite amazed how these folks were able to spend all that extra money they were getting in taxes and assessments and still weren't able to save virtually a single dime of it for a rainy day! Seems these folks are truly clueless wrt to economics.
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Old 02-21-2009, 10:03 PM   #23
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The problem with falling home values is that all the local governments (as well as the state governments) kept increasing their spending as the prices of homes inflated from 2000-2006. Now that home prices are deflating they are faced with either cutting spending or increasing assessments and taxes to maintain status quo. Of course the former option of reducing spending just isn't in the vocab of many politicians, so get ready for higher taxes. Still quite amazed how these folks were able to spend all that extra money they were getting in taxes and assessments and still weren't able to save virtually a single dime of it for a rainy day! Seems these folks are truly clueless wrt to economics.
Is this really true? Obviously the tax rate per $100 value will have to increase if values drop. However, the average tax imposed per residence, all else being equal, will remain the same. If my house value gets cut in half and the tax rate doubles, then I'm still paying the same amount of tax. At least in my local jurisdiction.
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Old 02-21-2009, 10:38 PM   #24
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Is this really true? Obviously the tax rate per $100 value will have to increase if values drop. However, the average tax imposed per residence, all else being equal, will remain the same. If my house value gets cut in half and the tax rate doubles, then I'm still paying the same amount of tax. At least in my local jurisdiction.
And do you imagine your tax rate will be cut in half once your house value goes back to its original level?

Would you accept a 100% tax if your house value dropped to the percentage you are being taxed now?
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Old 02-21-2009, 11:51 PM   #25
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And do you imagine your tax rate will be cut in half once your house value goes back to its original level?
That is exactly how it works in my County.

The total tax amount is set by formulas (CPI and referendums are part of it). Those formulas have nothing, nada, ZERO, to do with the price of anyones real estate.

The assessed value of your property determines how the tax amount is *divided* up across tax payers.

Really.


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Old 02-22-2009, 12:54 AM   #26
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Got my property tax bill. House dropped 10% but there was a flyer saying that my taxes would not do the same.
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Old 02-22-2009, 09:50 AM   #27
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And do you imagine your tax rate will be cut in half once your house value goes back to its original level?

Would you accept a 100% tax if your house value dropped to the percentage you are being taxed now?
Yes, this is exactly how it works in my county. My 2008 property tax bill actually dropped (versus 2007) because the assessed value of my house increased less than the average assesssed value in the whole county. And since they just reassessed in 2008, the tax RATE dropped very sharply since we saw a large county wide average increase between 2000 (the previous assessment) and 2008 (when they just reassessed).

Our county is fairly fiscally responsible and they don't look at property values going up as a magic way to inflate their budgets. They set the budget THEN establish the required tax rate based on what their tax base is in any given year. How do other counties do this??

I am always confused when I hear about other people who have experiences different from my county's and I wonder if it is other folks not understanding how their county property tax system works, they are misrepresenting the facts, or other counties really do double their budgets if the average house increases 100% in value. If the latter, then ouch! You guys have some "adjusting" to do!
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Old 02-22-2009, 09:58 AM   #28
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Although in Florida the prices of houses have gotten killed the property taxes stay the same or go higher. Last year we voted for an additional 25K homestead exemption yet my taxes went up again this year. They do this by just adjusting the millage rate up to compensate for lower house values and the possible reduction in tax revenue.

I paid my $15 last year for a tax hearing, what a joke.
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Old 02-22-2009, 10:24 AM   #29
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Our county ... set the budget THEN establish the required tax rate based on what their tax base is in any given year. How do other counties do this??

I am always confused when I hear about other people who have experiences different from my county's and I wonder if it is other folks not understanding how their county property tax system works, ....
My county handles this the same as yours. And most people I discuss this with in my neighborhood do not understand how the property tax is calculated. And they complain loudly, in complete ignorance of the facts.

They assume that a 10% increase in assessment means a 10% increase in their tax bill. That is not the case. I have that in writing in an email from our Assessors office, and it is stated on their website, but wrapped in some complex formulas, because there are a dozen different taxing bodies (schools, library, fire, mosquito abatement, roads, etc) all with their own budget. After all those budgets are in, an "equalization factor" is calculated, based on the sum of assessed values in the district.

I wonder just how many districts *really* tax based directly on assessed value, w/o an "equalization factor" (our district's term for it)? Based on my experience, I bet it's far fewer than most people who complain about it think.

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Old 02-22-2009, 10:34 AM   #30
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Similar reassessment here. House dropped about ten pct in assessed value (and a realistic estimate at that) and a good explanation of how the tax rate will be adjusted to compensate. Keeps the assessed value realistic and real estate tax income stable for the town.

Actually, in this state the towns are limited to their annual tax rate increases, and if I got a big COLA, then sure would expect taxes to go up commensurately.

Agree that many folks just don't understand that tax rates/assessments go up and down in concert with one another.
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