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THE Property Tax Thread (merged)

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Re: My property tax up 110%

Unread postby joeltrout » Tue 07 Oct 2008, 11:22:59

$this->bbcode_second_pass_quote('ROCKMAN', '
')I've heard for some time that CA prop txs were some of the lowest thanks to a public vote some years ago.


Prop 13 put a cap on property tax for people that bought years ago.

My uncle and aunt bought there house in 1969 for around $60,000. Their neighbor 2 doors down just sold their house for $875,000. Thanks to Prop 13 my uncle and aunt pay less than $800/year in property tax.

That equals to about 0.09142% of the homes value.

Unfortunately I bought my house in 2007 so my property tax is about than 12x their property tax.

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Property Tax Revolt Brewing

Unread postby deMolay » Wed 08 Apr 2009, 21:20:09

I can see the unionized Police fighting this one. As well as the Gubmint workers. http://abcnews.go.com/print?id=7254270&ref=patrick.net
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Re: Property Tax Revolt Brewing

Unread postby frankthetank » Wed 08 Apr 2009, 22:00:13

We just voted in a mayor and the reason he won was based on his property tax stand (lowering them)... We pay high property taxes up here!
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Re: Property Tax Revolt Brewing

Unread postby MarkJ » Fri 10 Apr 2009, 11:52:21

Rather than revolt, many of the middle class, upper middle class, wealthy and businesses simply cut and run rather than constantly fighting ridiculously high assessments and tax rates.

Even if they lowered assessments to actual market value, plus slashed budgets substantially, the tax rate in many regions would still be far too high to stop flight to areas with much lower taxes and a better quality of life.
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Re: Property Tax Revolt Brewing

Unread postby vision-master » Fri 10 Apr 2009, 11:54:41

lower taxes = lower paying jobs or no jobs.
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Re: Property Tax Revolt Brewing

Unread postby MarkJ » Fri 10 Apr 2009, 12:05:28

$this->bbcode_second_pass_quote('vision-master', 'l')ower taxes = lower paying jobs or no jobs.


Taxes are often lower in areas with a large amount of tax base growth due to large scale residential/commercial/industrial construction, renovation and expansion.
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Re: Property Tax Revolt Brewing

Unread postby Tyler_JC » Fri 10 Apr 2009, 13:43:04

$this->bbcode_second_pass_quote('vision-master', 'l')ower taxes = lower paying jobs or no jobs.


http://www.alec.org/AM/Template.cfm?Section=Rich_States_Poor_States

I urge you to consider reading this report.

America is a free country. People are allowed to vote with their feet...and they do.

Compare Texas to New York.

1.9 million people left NY between 1998 and 2007 while 740,000 moved to Texas. And despite the huge gains on Wall Street during the housing and stock market bubbles, Texas produced more per capita income growth.

Texas created 20% more jobs while NY produced only 8% more jobs.

Currently, New York has a 1.3% higher unemployment rate than Texas. (7.8% versus 6.5%)

New York has a massive and growing budget deficit, Texas has a deficit too but the size is much more manageable.

New York responds by hiking taxes, Texas responds by controlling spending.

In the 2007 fiscal year, the government of Texas spent $3831 per resident. New York spent $7846 per resident.

http://www.taxfoundation.org/research/show/287.html

The three year median family income for 2005-2007 in New York was $49,546. For Texas, the figure was lower. Texan families earned only $44,861.

The earnings gap is $4,685.

But the government spending gap is $4,015.

But it gets worse. That spending is per capita, not per household. When you assume that a household contains three people...New York exposes itself for what it is. An over-taxed economic black hole.

Texas spending on a family of three = $11,493 or 25.6% of that household's income.

New York spending on a family of three = $23,538 or 47.5% of that household's income. 8O

The only reason the people of New York aren't giving half of their paycheck's to Albany is that most of New York state revenue comes from the Wall Street bankers. With that money gone, the state will be forced to start pillaging middle class families. Just wait till the property taxes in New York start having to make up for the loss of banker bonus revenue, then you'll see one hell of a tax revolt.

To be fair, a big chunk of state government spending comes from the federal government but the gap between Texas and NY in terms of federal support is nowhere near $12K per household.

New York just taxes and spends too much. Or at least that's what the 1.9 million people who left the state think.
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Re: Property Tax Revolt Brewing

Unread postby vision-master » Fri 10 Apr 2009, 14:21:13

New Yark don't coun't................. :mrgreen:
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Re: Property Tax Revolt Brewing

Unread postby gnm » Fri 10 Apr 2009, 14:27:00

$this->bbcode_second_pass_quote('vision-master', 'N')ew Yark don't coun't................. :mrgreen:


Thats the best ya got?

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:lol:

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Re: Property Tax Revolt Brewing

Unread postby MarkJ » Fri 10 Apr 2009, 15:06:35

$this->bbcode_second_pass_quote('', 'T')he county (Saratoga) can spend the money without raising most tax bills, officials said, because of its continued residential and commercial growth. It has been among the fastest growing counties in the state for 40 years, and has added $1.3 billion to the tax base in the last year.

New York residents vote with their feet by moving to different cities, towns, villages, suburbs and school systems within New York. Most of our local population growth is from other New York counties.

In some of the high tax cities, close to 60 percent of property taxes is used to support Medicaid alone. Their cost per school student in these regions is often much higher than surrounding upper middle class & wealthy suburban school districts, plus their student achievement is lower and the dropout rate is higher.

Since many city properties are multi-family homes, or apartment buildings, they also get short changed on property taxes, not including the tax exempt public housing in comparison to the taxes collected on recent/new construction single family homes, commercial/industrial development and newer luxury apartments, townhouses and condos in surrounding regions.

Since many city homes and buildings are 1800s to early 1900s structures in relatively poor condition, their values and assessments are fairly low. Many city properties have also been demolished, scheduled for demolition, or they're vacant, abandoned or condemned which kills tax revenue.

Even if these regions had growth potential, (which they don't) many people wouldn't build, expand or improve when neighboring counties have much lower taxes, better school systems and a better quality of life.
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Re: Property Tax Revolt Brewing

Unread postby deMolay » Fri 10 Apr 2009, 16:02:43

Just found this one on You-tube. http://www.youtube.com/watch?v=Gv4OeKmWjOI
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Re: Property Tax Revolt Brewing

Unread postby Tyler_JC » Sat 11 Apr 2009, 01:38:40

The New York vs Texas question is just one example. I could draw a dozen comparisons.

Think about New Hampshire versus Massachusetts. One state has as its motto, "live free or die". The other one is known as "Taxachusetts".

Massachusetts has high income taxes, high sales taxes, and a strong welfare state.

New Hampshire has no income taxes, no sales taxes, and few government services (relative to its neighbor).

Which state gained 60,000 people over the past decade? And which one lost 335,000?

Massachusetts has a 2.5% higher unemployment rate.

And, believe it or not, New Hampshire has more economic equality than Massachusetts. NH is actually the third most egalitarian state in the country.

Lastly, the 2007 poverty rate in Massachusetts was 11.2%. New Hampshire, 5.8%.

And the best part about this example, compared to the Texas/NY example, is that it is very easy to move from Mass to NH. People do it all the time. 8)

As for property tax revolts. We are currently experiencing one in Massachusetts. In order for a town to raise its property tax rate more than 2.5% in any given year, they need voter approval. This year, the towns aren't getting it.
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Re: Property Tax Revolt Brewing

Unread postby MarkJ » Sat 11 Apr 2009, 07:38:15

I've hired an attorney to fight the many of my assessments since I was a teenager. I used to buy a lot of distressed or vacant properties in regions where properties were often assessed at 2X Plus actual market value. Since they had little residential/commercial construction, expansion and renovation, they'd inflate appraisals to prevent raising tax rates and cutting budgets.

The inflated assessments also give them wiggle room. Joe Six Pack is often happy when they reduce his assessment buy 20K although his property is over-assessed by 50K Plus. They bank on the fact that many people still won't grieve their taxes, challenge their assessment in court, or cut and run.
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Re: Property Tax Revolt Brewing

Unread postby Ludi » Sat 11 Apr 2009, 08:25:52

$this->bbcode_second_pass_quote('MarkJ', 'T')hey bank on the fact that many people still won't grieve their taxes, challenge their assessment in court, or cut and run.



Here in TX it costs at least $5000 to challenge property taxes in court. We looked into this when we were illegally denied Open Space Valuation, but decided we couldn't afford it. Fortunately the following year we were granted the lower valuation, because we had changed our livestock from "horse" to "wool sheep." The county tax board had said it "wasn't fair" to grant open space valuation for "horse" even though the tax code specifies "horse" as an agricultural livestock.
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Re: Property Tax Revolt Brewing

Unread postby MarkJ » Sat 11 Apr 2009, 09:13:53

$this->bbcode_second_pass_quote('Ludi', '')$this->bbcode_second_pass_quote('MarkJ', 'T')hey bank on the fact that many people still won't grieve their taxes, challenge their assessment in court, or cut and run.



Here in TX it costs at least $5000 to challenge property taxes in court.


Local homeowners that want to challenge their own assessments in court pay a $30 filing fee. Of course they need to do some paperwork, research and/or pay for an appraisal as well.

Many of the attorneys that specialize in tax grievance only charge a percentage of your tax reduction, plus they don't charge if they don't reduce your taxes.

When I've grieved my own taxes, often the assessors office has reduced my assessment before my court date.
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Re: Property Tax Revolt Brewing

Unread postby Ludi » Sat 11 Apr 2009, 09:18:53

$this->bbcode_second_pass_quote('MarkJ', '
')When I've grieved my own taxes, often the assessors office has reduced my assessment before my court date.



That's good to know! :)
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Re: Property Tax Revolt Brewing

Unread postby vtsnowedin » Sat 11 Apr 2009, 09:19:32

8) The difference in taxation between New Hampshire and Massachusetts is not as big as the NH politicians would have you believe.True there is no general sales or income tax but there is 'Business profits tax' 'Dividends and interest tax', ' Town tax on car registrations, 'A real estate transfer tax' and county property taxes on top of town and school property taxes.
And then you have tens of thousands that live as far north as the Concord area that commute to Boston for work that travel on toll roads that are only now getting their first major upgrade after their initial construction in the 50s. But if the traffic is backed up AGAIN you can pull into the rest area by the toll plaza and stock up on cheap booze ,lottery tickets and cigarettes in the state owed and operated liquor store.
The two largest things you buy and might pay sales tax on are your home and car. The real estate transfer tax wacks you and the seller when you buy a house and of course there are a few NOMINAL fees if you need a permit to do any upgrading. There is no sales tax when you buy a car but when you try to Register it you must pay the town you reside in a tax based on its value before you can pay for and get you state tags. It goes down each year but over the life of the car it amounts to a 6% sales tax or at least it was the last time I crunched the numbers on a real car. It might be higher today. So there you have perhaps fifty percent of your income exposed to a sales tax but go to the big box stores and your saving big bucks right? Wrong. There is that pesky little business profits tax the stores have to pay. It isn't on a separate line on the receipt but like Prego sauce its IN THERE. When I built my house I shopped for a name brand window in both NH and VT. The price of the windows delivered with the tax paid in VT was less then the pick up price of the same windows over the line in NH.
The jails, court houses, and government nursing homes are run by the counties and paid for by a county property tax collected by the towns and passed on to them. And of course you have your ever popular schools police and fire/ rescue departments funded out of town property taxes.
And then you retire and try to live on whats left of your investment portfolio. Don't forget to pay your dividends and interest tax. You didn't really have to work for that money so you don't mind sending a little to the state do you. You have so much and others have so little.
If you add up Every tax dollar leaving nothing out then you have very similar levels of taxation and per capita government spending.
What NH does have is a very low level of corruption. People really show up and do their job for the money. No political hacks and union thugs pulling down sixty large for a no show no work job. Makes all the difference in the world.
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Re: Property Tax Revolt Brewing

Unread postby vision-master » Sat 11 Apr 2009, 09:19:49

The tax assessor stopped by house a few Months ago. I talked him into lowering my assessed value. :mrgreen:
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property tax

Unread postby dsula » Fri 22 Jan 2010, 16:36:35

I own a decent amount of land. Paying my property tax I realize that without a job I won't be able to pay the tax.
If I loose the job my plan of going into low-power survival mode living of the land won't work because I can't pay the tax.

How are you guys who own land handle this ?
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Re: property tax

Unread postby ian807 » Fri 22 Jan 2010, 16:46:19

I rent out the land, well, housing, and have someone else pay it. If I had a lot of "land" land, I might rent it out for farming, hunting or recreation. Perhaps put a fish pond on it and charge to fish in it. That's what some local farmers did where I grew up. It really depends on the location and characteristics of the land in question.
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