Increase in Property tax and Home Insurance Rates

[lazygood4nothinbum]

Quote:

Originally Posted by brewer12345 I have to disagree with the "step in the right direction."

i knew you would and i've no doubt you are more informed than i in such matters. for instance i don't know anything about the auto reference. i know that this could mean assessments into the future to refund after a bad storm but it seems to me that when spread out among all state property owners (& this is a huge state) it might not be so terrible as something similar in new jersey. we don't even know that we are going to get hit again. even since andrew which didn't get me bad, my house only took one really bad hit from wilma, 11 years later.

while weather chicken littles keep predicting stronger & more storms, i don't know that all the weather pattern hasn't changed. so while there may be more, they might even be stronger, if weather patterns are changing then why would i assume the steering bermuda high will set up as it has in the past. perhaps that would change too. maybe all the new canes will go up to the carolinas (no offense intended) or metro new york instead of here. only time will tell us that. still, i'd rather play the assessment odds and get hit every 10 years than be kept at the mercy of insurance companies year after year.

i'd feel more comfortable about this if i had more faith that citizens will be run efficiently. i won't be holding my breath, but hopefully beaurocracy will figure out how to do that.

[justin]

Quote:

Originally Posted by ferco I've noticed over the past 5 years our property and home insurance rates have increased by an average of 5-5.5% per year. This is in NC. Since the posters to this site are prodigious record keepers what have been your average annual increases in these 2 areas over the past 5-10 years.

I went back and checked on my property tax for Raleigh, NC.

Here's the results, expressed as a percent change for the year vs. previous year:

2006 7.0%
2005 0.0%
2004 1.0%
2003 4.2%
2002 0.0%
2001 0.0%

Over the six year period from 2000-2006, the average annual tax growth rate was 2.0%.

My homeowners and flood insurance - no clue.

Where are you in NC? When I owned a place in Chapel Hill, NC a few years back, we typically saw 10% annual increases in property tax for the few years I lived there.

[hellbender]

2002 Taxes: $1399
2007 Taxes: $1223

House last assessed at $305,800
Current tax rate is $.40/$100
King George County, VA

Assessments and values went up. Tax rates more than compensated in the other direction. Got a great deal on the lot I built upon. Most of assessment increases went to land. Lazy appraisers simply tack on a percentage increase each year to the previous assessment. Since my cost was low to begin with I continue to pay less than most of my neighbors.

[ijuba]

Hellbender,

Over here on the other side of the Commonwealth,(Charlottesville), I recieved my assessment today for property taxes. In 2 years, the assessed value has gone up 23%

[hellbender]

Quote:

Originally Posted by ijuba Hellbender, Over here on the other side of the Commonwealth,(Charlottesville), I recieved my assessment today for property taxes. In 2 years, the assessed value has gone up 23%

How much have the taxes gone up?

[wabmester]

Quote:

Originally Posted by ferco Don't these increases wreck havoc on a presumed/assumed 3% inflation rate. the only mitigating factor(s) might be if other budget items stay significantly below this rate to balance out the high ones................does(or can)FireCalc account for these wild increases?

I'm not sure how you'd model it. Obviously you'd have to weight it vs other expenses. That's exactly what the BLS does for the CPI calc.

Personally, I hate property taxes more than any other tax. But here in WA, it seems calculated in a fairly equitable way. There's a state/local-wide cap on increases (currently 1%/year, but that could change). The effect is that if you live in an area that isn't appreciating as fast as other areas, your taxes might go down even if your assessed value went up.

Also, like many other states, WA gives breaks to old and poor folks.

Regarding home insurance, I find that it varies a lot among insurance companies and it depends on other factors (like whether you insure your car with the same company).

Again, no idea how you would project a budget (ask the Bunny, he says he knows ), but the net effect is that our insurance costs have actually gone down over the last few years.

[ijuba]

The tax rate is .74/$1000 of assessed value.

The problem with this county (Albemarle) is that the "assessment to market value" ratio is consistently one of the highest in the state....ie: they get their money.

There is talk about lowering it 2 cents - still pales in comparison to the value increase yoy.

The good news is that I will not ultimately stay here and will cash in when we move to a lower cost area - after the youngin' gets through with school.

[bssc]

In Phoenix, AZ

Maricopa County Property Taxes on our house
2006 $1,904.44
2005 $1,953.32
2004 $1,891.38
2003 $1,868.92
2002 $1,684.24
2001 $1,615.28
2000 $1,549.54
1999 $1,250.12
1998 $1,166.30
1997 $1,161.66
1996 $1,070.66

Insurance has risen to cover our house's replacement value.

[jazz4cash]

Quote:

Originally Posted by Andre1969 I'm in Glenn Dale, Maryland, DC suburbs. As for homeowner's insurance, I think it actually came down a bit. I can't remember what I paid in late 2004, but in late 2005 I paid $795, and I think it was down a bit to around $750 when the bill came up again this past November.

Hey there Andre, I'm your "neighbor" in Laurel, MD. My homeowners went down this year also....about 6% I don't insure for market value, only the greater of replacement cost or mortgage balance. If something happens that destroys the lot.........I guess Im in trouble.

On the property taxes, I understand there is something here called "TRIM" which is the local version of Prop 13, but I am not familiar with the details.

[Helena]

Quote:

Originally Posted by MasterBlaster Other states like Texas have no income tax but really soak someone in their property taxes.

Here in Dallas, my property tax actually went DOWN... a little.
The state had to do something about the high property taxes.
Next year it is supposed to go down more... we'll see.

I pay $3900 for a $153,000 home... OUTRAGEOUS !

[73ss454]

We moved Fla. last month but owned the house for 4 years prior. Since we did not homestead the Fla. house our taxes went from $2800 to 8K. This is one crazy state for property taxes. Our next door neighbor has the same house with a pool which we don't have. He pays $3800 because he homesteaded when he bought 4 years ago. His taxes can only be raised 3% a year on the other hand we got killed with taxes. Even though we homesteaded last month Fla. can raise us for one more year what ever they see fit. After next year they can only raise us 3% but 3% of 8 or 9K is a lot more than 3% of $3800. I will always pay more than my neighbor even though the house is the same and we have the same services.

Our home owners ins. doubled this year also. Maybe I'll go look for a job tomorrow.

[cute fuzzy bunny]

Quote:

Originally Posted by wab I'm not sure how you'd model it. Obviously you'd have to weight it vs other expenses. That's exactly what the BLS does for the CPI calc.

Where is that exactly, can you point it out? I could have sworn the CPI used area rents and didnt include property taxes at all.

[wabmester]

Quote:

Originally Posted by Cute Fuzzy Bunny Where is that exactly, can you point it out? I could have sworn the CPI used area rents and didnt include property taxes at all.

Well, my point was that one needs to assign a *weight* to budget components in order to figure an inflation rate, but if you want info about the OER, check

FAQ

rent

10. How are taxes treated in the CPI?
Certain taxes are included in the CPI, namely, taxes that are directly associated with the purchase of specific goods and services (such as sales and excise taxes). Government user fees are also included in the CPI. For example, toll charges and parking fees are included in the transportation category and an entry fee to a national park would be included as part of the admissions index. In addition, property taxes should be reflected indirectly in the BLS method of measuring the cost of the flow of services provided by housing shelter, which we called owners' equivalent rent, to the extent that these taxes influence rental values. Taxes not directly associated with specific purchases, such as income and Social Security taxes, are excluded, as are the government services paid for through those taxes.

[cute fuzzy bunny]

Right. So they include rents and presume that the property tax changes on apartment buildings are going to even out with property tax changes on a residence.

That might be reasonable in some areas. In mine I can rent a 400k house with a $4000 a year property tax bill for $1100 a month or less.