[hope_full]

We pay $4500 a year for property tax on our average home in a less-than-average (more crime than average) neighborhood in Virginia. In fact, this elderly house cost about $250,000 less than a "fancy" house in the safe suburbs. I don't know how people afford those fancy houses in the suburbs.

A scant 20 years ago, my house payment was $360 a month, PITI (principal, interest, taxes and insurance).

Now how does the average joe pay $4,500 a month in property taxes? That's just an obscene amount. And we pay $200 a year in property taxes on our old cars, too. I don't know how J6P does it.

BTW, our taxes have gone up 50% in the last 12 months.

Hope

[MarkJ]

I've looked at hundreds of tax seizures, foreclosures, vacant homes and abandoned homes that should be demolished with annual taxes in the $2,000 to $4,000 range. Many of the homes have a negative value when you factor the cost of lead/asbestos abatement, demolition, clean fill, hauling, landfill fees etc.

[joeltrout]

$this->bbcode_second_pass_quote('hope_full', '
')Now how does the average joe pay $4,500 a month in property taxes?

[lowem]

Always wondered how my American friends put up with these property taxes. Major, major expense. Over here, I'm paying around $100. Per year.

On the flip side, people here pay $14,000 for the "right" to own a car.

[DomusAlbion]

In the low tax land of the free (Idaho) we pay around $950 per year for our 7.5 acre farm and 2400 sq ft house. Idaho has a "resident" deduction. If you live on your property year 'round you get a 50% reduction in taxes. All vacation properties pay the full tax, so all those wealthy folk who come to Idaho for the summers are defraying our tax burden. Thanks Hollywood scum.

[Pretorian]

$this->bbcode_second_pass_quote('oilluber', 'y')our just off loading taxes on your neighbour.
Anyways , most homes going down in value, so they will
re work the formula so they can collect more as the value of
the house goes down.
The state needs $$ right now, property tax is the governments
best thing going.
If you don't pay, they kick you out of your house , sell your house,
and they get paid.

[Pretorian]

$this->bbcode_second_pass_quote('joeltrout', '')$this->bbcode_second_pass_quote('hope_full', '
')Now how does the average joe pay $4,500 a month in property taxes?

[joeltrout]

$this->bbcode_second_pass_quote('Pretorian', '
')Many, if not most houses won't bring in enough revenue from rent to cover property tax/tear&wear.

[joeltrout]

$this->bbcode_second_pass_quote('Pretorian', '')$this->bbcode_second_pass_quote('joeltrout', '')$this->bbcode_second_pass_quote('hope_full', '
')Now how does the average joe pay $4,500 a month in property taxes?

[joeltrout]

$this->bbcode_second_pass_quote('joeltrout', '
')Check out this article on MSN Money titled Property taxes: Where does your state rank?

Wisconsin has the highest at 1.82% of the home value.

joeltrout

[Pretorian]

Ok, what about tear&wear, maintenance?

[hope_full]

Oopsie. I meant, how does the average joe pay $4500 a YEAR for property taxes, not $4500 a month. Yeesh.

$4500 a year is about $400 a month (little less, I know). It just seems outrageous.

[joeltrout]

$this->bbcode_second_pass_quote('Pretorian', 'O')k, what about tear&wear, maintenance?

[grassland]

$this->bbcode_second_pass_quote('hope_full', 'O')opsie. I meant, how does the average joe pay $4500 a YEAR for property taxes, not $4500 a month. Yeesh.

$4500 a year is about $400 a month (little less, I know). It just seems outrageous.

[Kez]

$this->bbcode_second_pass_quote('Pretorian', 'W')hat is the point of owning a house in US exactly?

[ROCKMAN]

Joel,

I have to question that list. Property tax on my $125,000 house in Tx was over $4500. I wonder if they mean just a county property tax? In Texas the school districts are allowed to set and collect taxes directly from home owners. The school taxes are by far the biggest chunk. True, we have no income tax, but long ago I saw a study which showed the effect of all taxes: property, sales, corporate, income, etc. It showed Texas had the third highest effective tax rate in the US. But that study was at least 10 years ago.

[joeltrout]

$this->bbcode_second_pass_quote('ROCKMAN', 'J')oel,

I have to question that list. Property tax on my $125,000 house in Tx was over $4500.

[Ludi]

$this->bbcode_second_pass_quote('jimmyz', 'J')ust saw the new proposed taxes up 110% on my house from last year, That is just the parish i don't even live in the city limits. pork pork please.

[PrairieMule]

$this->bbcode_second_pass_quote('Ludi', '
')
I'm not familiar with Louisiana's tax code, so I can't really give you much specific advice.

[ROCKMAN]

Yes to both Joel. Most here also pay a water/sewage tx based on property value. Of that $4500+ tx I think the actual county tx was around $1100. That might be the number they used to generate such a low percent. It's those school txs that really make the big bite. Some of the best school districts have txs 50% higher then mine. Great if you have kids going to those schools....really sucks if you're childless.

I've heard for some time that CA prop txs were some of the lowest thanks to a public vote some years ago. I know some other states were considering imposing such restrictions. Right now, given the current real estate market meltdown, it would seem collecting txs based upon real estate values is a poor process. It particularly hurts seniors in TX. They get a small senior tx break but it's easy for some retired folks to end up paying more monthly txs then they had been paying P&I on the original mortgage. Thus at a time when their income may be lowest they are faced with ever increasing txs. As much as I hate the paper work a state income tx seems the most fair. It would also force the state to adjust its spending with shifts in the economy.