New Property Assessments -> Property Taxes!

[aaronc879]

Here they did a new assessment in 2018 and then started a new policy of doing a new assessment every year. In the last 4 years my property has gone up 53% and my property taxes have gone up 31%. I would not actually be able to sell for what they say my property is worth though. They don't do a physical assessment they just compare "similar" homes in the area. They say my 3bd ranch is worth the same as newer nicer 3bd ranches even though it is not.

 

[W2R]

In 2008 the property tax on my previous house was $864.

The assessment didn't change until I sold it and bought my Dream Home in 2015, and at that point my new home was assessed at purchase price, which seemed fair to me. Property tax at that point was $1,668.

But then we got a new, more energetic tax assessor/collector, who began actually DOING the re-assessments he was supposed to do every 4 years. (The previous guy just didn't bother).

So, last year my property tax was $2,121. This year's property tax isn't due until December, so the amount hasn't been revealed yet.

Honestly I've got no complaints thus far. From what I've read here on the forum, it could be worse.

 

[ncbill]

Online they are still showing the exact same millage for 2023 as 2019-2022, However, with some digging I found they will review the millage rates by July 1 (found that in the local paper, not the tax offices?). Furthermore, I found the county and city tax rates per $100K valuation for 2018 to 2019, last revaluation, and the millage rates decreased 24%. So while our property taxes will go up, it won't be at the same rates as valuation increases, probably much less.

Sorry, first time I've lived anywhere where property valuations changes so much!!!

Well, if you're 65 or older & can 'manage' your income from all sources to be under the current limit of ~$34k property tax is cut in half.

Must re-qualify every year, though.

 

[luckydude]

When I was a fresh out of college new hire, one of the older guys in my dept commented: "If you have to pay taxes on it, you never really own it".
The corollary is: "you rent your property from the government."

I would look at it this way. You do own your property, but you need to pay for services that make living on the property possible/convenient/pleasant. Such services include schools, fire, police, sewage, community amenities such as parks, libraries, etc. and even something as mundane as mosquitos mitigation or weed abatement (where applicable). That's what the proper tax pays for. Without these services, living on the property wouldn't be very pleasant or convenient.

 

[Teacher Terry]

My property taxes can’t go up more than 3% and are low to start with. Part of the formula is age of the property. My taxes are 400/year.

 

[MC Rider]

I think I like prop 13. Our tax went up some but not a huge amount in the years at our last place. Meanwhile the market value went way up. At the new place taxes are lower because the property price was lower in this relatively LCOL area.

 

[aaronc879]

My property taxes can’t go up more than 3% and are low to start with. Part of the formula is age of the property. My taxes are 400/year.

Where is that? How do you pay for schools? Just my local public school district alone was $1760 on a $168K house.

 

[audreyh1]

Ours went down slightly last year. I thought they assessed annually here as the assessment changes annually. At least as residents we’re limited to a 10% tax increase per year.

 

[Fermion]

Where is that? How do you pay for schools? Just my local public school district alone was $1760 on a $168K house.

Their next door neighbor with a new property who is assessed $10,000 pays for it

It is a very fair pyramid scheme, I mean system.

 

[Sunset]

I was hoping that would be the case, only seems fair. But the published millage rate for 2023 is the same as 2022 & 2021 for our country and city despite new property values. Taxes aren't due here until Sept, so maybe there will be change?

Our cabin had this issue, and so taxes went up 50% for everyone as the millage rate remained the same.
It was kept the same the 2nd year too, so I guess gov't in the tiny town like the extra cash

 

[harley]

I guess anything is possible, cost of living in paradise - LOL. But I've been in FL for 8 years, haven't seen anything close to 40% insurance increase. Highest I saw was just over 10% one year. This year change was flat.

You need to visit the Big Jump In Homeowner's Insurance thread. https://www.early-retirement.org/forums/f28/big-jump-in-homeowners-insurance-117100.html

Lots of examples of significant increases in homeowner's insurance there. Mine personally went up over 50% this year, with no changes, no claims. Of course, everything around me was completely destroyed by hurricane Ian, so it's sort of understandable. Rather than being surprised that others are seeing large increases, I'm rather shocked that you aren't. But keep your head down and fingers crossed, and maybe they won't notice.

 

[Teacher Terry]

Where is that? How do you pay for schools? Just my local public school district alone was $1760 on a $168K house.

I live in Reno. Property taxes in general are lower compared to many states. I spent 32 years in Wisconsin and taxes are higher. However, Wisconsin has better schools and much better social programs.

 

[bobandsherry]

You need to visit the Big Jump In Homeowner's Insurance thread. https://www.early-retirement.org/forums/f28/big-jump-in-homeowners-insurance-117100.html



Lots of examples of significant increases in homeowner's insurance there. Mine personally went up over 50% this year, with no changes, no claims. Of course, everything around me was completely destroyed by hurricane Ian, so it's sort of understandable. Rather than being surprised that others are seeing large increases, I'm rather shocked that you aren't. But keep your head down and fingers crossed, and maybe they won't notice.

You probably hit it on the head, and what I mentioned previously, it's area/region specific. From your comments you obviously are in an area with higher risk of destruction and now a history of destruction. Ian didn't cause any damage in the area I'm in. And my new home built to the latest code for up to 150mph winds and no chance of storm surge due to elevation level. As I look at discounts on my policy it's shocking to me to see how much discount I get for hurricane mitigation.

And as you know, in our state another driver to higher home insurance cost is older roofs, some insurance companies no longer insuring homes with roofs over 10 years old. With a new home and tile roof that's another benefit to keep insurance costs down.

Maybe I'll see a bit come next renewal but can only comment about what I've experienced to date, who knows what the future will bring.

 

[rmorris50]

My assessment here in Charlotte NC jumped almost 30%. But how much of an increase that translates to is extremely hard to tell. My home is only 2.5 years old, new build in a hot area. So my value surely went up compared more compared to the long time residents in older homes. However there are still a ton of new builds going up. And I don’t think the city budget is going up much. So how that all pans out remains to be seen.

 

[troutnut1]

Online they are still showing the exact same millage for 2023 as 2019-2022, However, with some digging I found they will review the millage rates by July 1 (found that in the local paper, not the tax offices?). Furthermore, I found the county and city tax rates per $100K valuation for 2018 to 2019, last revaluation, and the millage rates decreased 24%. So while our property taxes will go up, it won't be at the same rates as valuation increases, probably much less.

Sorry, first time I've lived anywhere where property valuations changes so much!!!

Property taxes generally support our local communities wants and needs. All communities need basics like schools, police, fire, roads, public buildings, sewage treatment, etc. Property taxes are like room-mates in the community splitting the bills for things we wanted and voted for. The system is based upon “ad valorem” (according to value) taxes levied on the resident property owners. Basically there are three parts of the equation. Valuation, Budget, Mill Levy. Counties are not allowed to run deficits. They don’t generally budget for surpluses either. Their income must basically meet their expenses every year. We simply split the bills of the community we want to live in according to the values of our property. If all property values double, but the budget remains unchanged, mills would halve and taxes would remain the same. If all property values declined 50%, bills still need to be paid, and if the budget is the same, mill levies would need to double. Appraisals, whether going up or down in the community, are just one part of the equation, and cannot tell us whether taxes will be changing or how much. Tax increases are always a result of spending money. Worry if you and/or your neighbors vote YES on ballot issues that involve money. Most of the time, if you get a significant tax increase its because, you, or your neighbors voted YES on too many nice things. But sometimes a community can save money by spending money. My local volunteer fire department for instance gets a small levy, but saves me far more than their cost by reducing the cost of my homeowners policy. Another practically guaranteed tax increase comes when your valuation goes up far more than others in the community. If you build a new 4 car garage, but none of your neighbors do, expect a tax increase. If you remodel and make substantial improvements, expect a tax increase. If your home burns down, and you don’t rebuild it, expect a decrease. Tax appraisals are only a problem when they are wrong. If your property is erroneously valued at a higher than market value, that would be something that needs action on your part. Appeals are often needed or at least a visit to the local assessor. If your property is erroneously valued lower than market value, you might consider keeping quiet about it. Of course there are various exceptions to the above formulas when local or state governments pass certain caps or limitations on the ability to make changes annually. When this happens, local governments must find ways to do without, or get the money elsewhere.

 

[Koolau]

Our assessment went up about 12% or so. Our tax bill is still less than $2K/year in Paradise. YMMV

 

[ERD50]

Online they are still showing the exact same millage for 2023 as 2019-2022, However, with some digging I found they will review the millage rates by July 1 (found that in the local paper, not the tax offices?). Furthermore, I found the county and city tax rates per $100K valuation for 2018 to 2019, last revaluation, and the millage rates decreased 24%. So while our property taxes will go up, it won't be at the same rates as valuation increases, probably much less.

Sorry, first time I've lived anywhere where property valuations changes so much!!!

OK, but each of the three counties I've lived in (and it does seem to be the norm), adjust the rate - your assessment only represents your % of the total. So an increased assessment could result in a lower tax bill, if the total of the assessments (including new/improved building) went up a higher % than yours.

Didn't it seem unreasonable that you'd get a 46% tax increase, or that others would see double? That would have me looking into it, before I jumped to that conclusion.

I'm surprised how many homeowners just don't seem to get this.

That said, a high % property tax increase in some states would just be a rounding error to some of the IL property tax bills! I recall looking at the listing that an out of state relative was putting an offer on, and I thought the property tax was stated as a monthly bill - no, that was annual!

-ERD50

 

[sengsational]

How do you find one of those firms that do the appeal for you? I know you can do it yourself, but those firms do it in all situations and know what works and what doesn't. The documentation I might assemble might seem good, but might suffer from non-obvious flaws. I'd rather hire the service.

 

[Jerry1]

How do you find one of those firms that do the appeal for you? I know you can do it yourself, but those firms do it in all situations and know what works and what doesn't. The documentation I might assemble might seem good, but might suffer from non-obvious flaws. I'd rather hire the service.

Talk to a realtor or real estate appraiser. Basically, you have to bring comps to the tax authority and show how your valuation is incorrect.

 

[MichaelB]

How do you find one of those firms that do the appeal for you? I know you can do it yourself, but those firms do it in all situations and know what works and what doesn't. The documentation I might assemble might seem good, but might suffer from non-obvious flaws. I'd rather hire the service.

I think it varies around the country. In the Chicago area fees for a successful appeal are regulated and specialized attorneys regularly engage in direct marketing campaigns.

 

[Sunset]

I think it varies around the country. In the Chicago area fees for a successful appeal are regulated and specialized attorneys regularly engage in direct marketing campaigns.

Yes, we paid $150 one year and it supposedly reduced our assessed value so the taxes were less than originally increased.
However, it was awkward/hard to actually see the effect.

This year I attended a County meeting and filled out the paperwork myself to file an appeal (disagreement ), then went home and filed again as I wanted to add to my original filing, but couldn't find it online.
In my second appeal I pointed out the house across the street was 2x the size of our and assessed at only 5% more than ours.

A couple of months later we got a letter. We got $20K knocked off the value so I guess it's a small win, considering I also saved the $149

 

[ERD50]

How do you find one of those firms that do the appeal for you? I know you can do it yourself, but those firms do it in all situations and know what works and what doesn't. The documentation I might assemble might seem good, but might suffer from non-obvious flaws. I'd rather hire the service.

Around here (Chicago area/suburbs), they will find you! We get mailings, there are billboards. I've never used their service.

[mod edit]

 

[jazz4cash]

How do you find one of those firms that do the appeal for you? I know you can do it yourself, but those firms do it in all situations and know what works and what doesn't. The documentation I might assemble might seem good, but might suffer from non-obvious flaws. I'd rather hire the service.

When I started searching online to prepare my appeal, I found several attorneys that offered the service. They claim to only charge a %age of the 1st year’s savings if successful. It would’ve been $3-500 I think. I gave details to two of them to contact me but never heard back. I assumed they felt I had a lousy case but I filed it myself and got a decent reduction.

 

[skipro33]

Well, at least here in California, I'm still protected from unchecked property tax increases. Prop 13 limits the tax at 1% at time of purchase and an increase to 2% max per year. Bought our home for $97,500 and it's market appraisal is right about 10X that much today: just shy of a million. My property tax is a little over $3,000 a year. $2,800 is the tax and the rest are bonds.
Just because you are paying on your tax bill doesn't mean it's all tax, could be bonds included.

However, if I decided to sell this house and buy one for an equal amount someplace else in the state, my taxes would be $10,000 a year. (1% of $1M) This is a BIG reason older residents do not sell their homes to downsize in California: the taxes would not make it feasible.

 

[Gumby]

If our board of aldermen approves the budget just submitted by the town finance committee, our mill rate, and hence my real property taxes, will go up 1.09% starting in July. -- to $13,684 per year (plus another $1000 or so for the cars). It's our largest expense.