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So i'm in contract on the house and just trying to figure what my taxes will be. Im in LI NY and the current owners taxes are about 9k/yr and they pay about 8k with STAR. Should my taxes be the same or will they be reassesed? Do I get STAR automatically? if im paying 6 months tax up front at closing do I pay 6 months at the 9k/yr rate or at the rate with STAR?
That will depend. If their taxes are based on a home value of $500,000 but you buy the home for $600,000 the state will automatically raise your taxes to the purchase price.
I should add that this is the case in Texas and may vary from state to state.
From what I know of property taxes in NY (and that is not as much as some do...) I doubt your taxes will stay the same. For one thing, the yearly levies change with the needs of the taxing bodies, and right now they are probably going to be asking for more.
Similarly the assessed value changes in response to, among other things, the assessed valuation. That is based in part on the amount paid, but there is also a complex equation that is applied. That STAR thing is based on factors that include the annual eligibility of the area, and the owners, and the State's ability to fund the rebate program...
In pretty much all cases the more frequently a property changes hand the closer its assessed valuation is to the true market price, so if the previous owners were long time residents their assessed value could be way off, and if they were senior citizens their STAR classification could have netted a bigger rebate than you would qualify for.
Doesn't your real estate agent have the documents to estimate this?
I bought a house in NYS long time ago so things could have changed since. I think I paid the previous owner's tax for the year we bought the house. I believe it also depends on the time of year you buy the house. In your case, it's very possible that you will pay what the previous owner has to pay for 2009 year. You are likely to get STAR exemption as well for 2009 year, if the seller has this exemption. But you need to apply for next year.
if im paying 6 months tax up front at closing do I pay 6 months at the 9k/yr rate or at the rate with STAR?
IIRC, you are not paying 6 month tax to the seller. More likely, if you use escrow account, you are depositing 6 month tax to this account, which will then pay the property tax when it's due (November, December). So even if you over pay at closing, you are not actually paying more. Your escrow account will have more balance at the end. No need to worry, as long as your attorney is doing the right job. Make sure you understand all the figures in HUD1, when the closing approaches.
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