Potential Property Tax Freeze- WWYD?

[marko]

Your taxes went down and you're asking what to do about it?? Is that the question?

 

[rk911]

They make the rules. I'd do what is legal and best for my situation.

Absolutely. Increase your charitable giving if that gives you peace of mind but, objectively, I see no reason to not freeze your taxes.

 

[njhowie]

Turns out NJ has a similar program.

https://www.nj.gov/treasury/taxation/ptr/

The way NJ has it structured, based on my reading, we pay the property taxes, then apply for reimbursement for the difference above the tax in the first year of application. There are income caps (from all sources, including untaxed, like Social Security payments), but last year those caps were increased significantly.

We have a few years until we hit 65, but this is on my radar now.

 

[DallasGuy]

I live in TX and I have 3 tax districts....1) School 2) County and 3) City. The school taxes make up at least 2/3 of the total when you add them all together. The school district freezes the valuation when you have an over 65 exemption when you turn 65. I turned 65 two years ago and since then my home valuation has gone up about $100-120k. I'm not complaining. The other tax districts (county and city) have some over 65 breaks as well which is nice.

If I was you, I'd be happy that you lucked out with the lower frozen valuation and freeze it....count your lucky stars! And I wouldn't feel the least bit guilty about the lower taxes since many seniors (and I'm guessing you too) have been paying school taxes for quite a long time without having any kids going to school. And if you feel the need, increase your donations to a cause that you believe in.

 

[Al18]

Njhowie, In my opinion I wouldn’t expect the Senior Freeze program to be around much longer. The Anchor rebate program for the past two years was helpful for many homeowners and renters because there was no age requirement. The Governors address last week mentioned extending Anchor and the future StayNJ rebate programs, but I seriously doubt they will be fully funded at a cost of $4.5 billion per year https://www.nj.com/news/2024/02/youll-get-the-anchor-property-tax-benefit-again-under-gov-murphys-proposed-budget.html

 

[njhowie]

Njhowie, In my opinion I wouldn’t expect the Senior Freeze program to be around much longer. The Anchor rebate program for the past two years was helpful for many homeowners and renters because there was no age requirement. The Governors address last week mentioned extending Anchor and the future StayNJ rebate programs, but I seriously doubt they will be fully funded at a cost of $4.5 billion per year https://www.nj.com/news/2024/02/you...-again-under-gov-murphys-proposed-budget.html

Thanks. We've gotten the Anchor rebate the past two years.

 

[Texas Proud]

Best time to get a low valuation is just before it being freezed...


My BIL appealed his valuation (almost annually BTW) and he got his down maybe 25% from market... and the next year it was frozen for school taxes and stayed low for awhile..



I agree that as long as you are following the rule and law you have done nothing wrong...



BTW, the politicians here had given a 100% reduction on taxes to apartments that had a small number of units for low income... so EVERY apt complex started to have 'low income' units which were not that low BTW... guess who picks up the taxes lost on this? Yep, you do... so do not feel bad when you get a break...

 

[athena53]

BTW, the politicians here had given a 100% reduction on taxes to apartments that had a small number of units for low income... so EVERY apt complex started to have 'low income' units which were not that low BTW... guess who picks up the taxes lost on this? Yep, you do... so do not feel bad when you get a break...

Good point- when they figure out how big the revenue shortfall is after freezing property taxes and no longer taxing SS, they'll find a way to get more out of "the rich"- and that will include me.

 

[Rustic23]

I had just the opposite. My taxes froze, next yea they're appraised and values went down. They allowed me to pay the lower tax, but would not lower the ceiling.

 

[jbergsli]

Back when everything crapped out in '08 I went thru my townships reassessment procedure. They rolled back my homes value to a favorable (to me) level. They use an automatic system based on the cost of living to raise the assessed value. I have saved thousands over the last 15 years. I feel sorrow for the surprise who ever buys my home is going to get on the 1st tax bill

 

[Global Wizzo]

OK, OK, you have me convinced! I do think I'll increase my charitable donations accordingly. I've focused mostly on my church plus organizations that help people out of poverty (education, counseling, job help), but could add something like our local food assistance program that could help people struggling with the increased taxes.

You might check with the power company. Some have a foundation that can take donations to help low income folks.

 

[athena53]

You might check with the power company. Some have a foundation that can take donations to help low income folks.

One of my main charities helps the poor and the homeless and they do good work- but thanks for the suggestion.

Another thing that occurred to me- this tax break doesn't apply if your house is assessed at $500K or more. Right now I think $400K would be a reasonable market value although the assessed value is a little over $300K. It's entirely possible that a subsequent next valuation (end of 2026 or 2028) could push it up over $500K and that will be the end of the tax break. Yeah, I'll take it while I can.

 

[PatrickW]

Congrats

Congratulations to the OP on their good fortune. Lock it in!

I’m in Texas, and my assessed home value was increased 94% last year. We protested and lost. We’re going to pay for an independent appraisal and see if we have better luck next year…

The school districts here are downright predatory in their taxation (via property tax), to the tune of 73% of our total tax bill. A bitter pill for people like us who never had children.

 

[Amethyst]

I'm surprised there isn't a means test for scheenyerz, to exclude those who can afford tax increases, but since there isn't, I say go for it!

 

[athena53]

The school districts here are downright predatory in their taxation (via property tax), to the tune of 73% of our total tax bill. A bitter pill for people like us who never had children.

You made me look- it's 70% for mine. Back when I was paying crazy-high property taxes in Bergen County, NJ and also paying to send my son to NY Military Academy because he was falling through the cracks in the public school system, I at least had the comfort that our local school system was extremely desirable and I reaped the benefit when I sold. My current local school system is NOT well-regarded; the area has poorer demographics, so more single-parent households, more at or near the poverty line, etc. There are a lot of troubled kids in the school who need a lot of support. The mill rate for the schools did not change when the values skyrocketed. It will be interesting to see what they do with the windfall. I'd feel better about supporting a truly good school system.

 

[qwerty3656]

In Michigan, unless the property was sold, the taxable assessment can be increased only by the amount of the consumer price index (C. P. I.) or 5% (whichever is less). I've lived in the same house for 25 years and my property taxes are a little over 3k a year.

 

[DrRoy]

Play the hand you were dealt.