Assessed Value vs Market Value (Dover, New Castle: houses, school districts, property tax) - Delaware (DE) - City-Data Forum

margeaa · 08-15-2010, 02:17 PM

My brother and sister-in-law were recently in Dover looking at houses since they were considering moving there from Virginia, and had the following question: Why is the assessed value so much lower than the market value, sometimes as much as 75%? For example, they saw a house in Dover with a market value of $450,000, but the assessed value was only $120,000, and the taxes were only $1,800. They are concerned that there will be a reassessment soon and taxes will go way up. I told them that I would put this out on the forum for them. Thanks, in advance, for any comments...Marge

doctorjef · 08-15-2010, 02:31 PM

All three DE counties are overdue for a new tax assessment on residential properties but I doubt that taxes will rise dramatically. I would expect a small incremental rise. The highest property taxes in DE are in New Castle County and even these aren't at all very high in comparison to other states. Dover is in the central county, Kent, which has property taxes intermediate between New Castle and the southernmost county, Sussex. Sussex hasn't had a tax reassessment since the 1970s and there are houses in unincorporated areas that are worth a half million yet have an annual tax bill of as little as $400! I really wouldn't worry too much about a huge tax increase. Low property taxes are the Delaware way and I'm sure they don't want to slay one of the members of the State's little flock of golden-egg-laying geese.

jdoll · 08-15-2010, 03:20 PM

The $450k MV to $120k AV is the same percentage variance as my home, 20 miles north of Dover. And $1,800 sounds standard too.

ltdontcare · 08-16-2010, 05:56 AM

SSSSHHHHHH.. Iksnay on the axtay. We are paying too much for property tax now! When the gov learns to spend out tax money wisely, then we can talk about assessments!

Hollytree · 08-16-2010, 07:20 AM

Assessed value and market value are two entirely different things.

doctorjef · 08-16-2010, 10:24 AM

In regard to an issue raised by a poster above, it should be noted that in Delaware - and most other states AFAIK - property taxes support the local school district and local county and/or city works and services. In some jurisdictions the total property tax bill is clearly divided up into local school tax and county tax. In any event, it's usually nothing to do with the state government, but rather with the tax-setting authority of local school districts and county government. Delaware's taxes certainly are not unreasonable.

jdoll · 08-17-2010, 06:21 AM

Quote:

Originally Posted by ltdontcare

SSSSHHHHHH.. Iksnay on the axtay. We are paying too much for property tax now! When the gov learns to spend out tax money wisely, then we can talk about assessments!

Tell any resident of MD, PA or NJ what your RE taxes are and gauge their reaction as you tell them you "pay to much in RE taxes". The internet term for their reaction will be: ROFL.

Gone-2-Beach · 08-17-2010, 06:54 AM

Quote:

Originally Posted by jdoll

Tell any resident of MD, PA or NJ what your RE taxes are and gauge their reaction as you tell them you "pay to much in RE taxes". The internet term for their reaction will be: ROFL.

Add New York and Connecticut to that list! I'm going to build a home in Magnolia that will be approximately the same size and same market value as the one in which I'm living in New York ... and will be paying about 11-12% of what I now pay in taxes. Paying too much? I don't think so!