Congratulations Nevada you have almost become California! (Reno: sales, house)

[2sleepy]

Originally Posted by lvoc

No. The Nevada in state tax load is roughly half that of California. The property tax is about the same for newly sold homes as a percentage but vastly higher in practice due to the high value of CA homes.

Depends what part of California you are talking about, there are areas in Northern California where housing prices are quite similar to the Reno area - and in California your tax doesn't go up every two years when it's reappraised.

[lvoc]

Originally Posted by 2sleepy

Depends what part of California you are talking about, there are areas in Northern California where housing prices are quite similar to the Reno area - and in California your tax doesn't go up every two years when it's reappraised.

Actually they do. They are limited in the amount. And the vast majority of the CA homes are located along the coast.

One can argue that the CA system is vastly unfair to the new buyer whose taxes reset on purchase and can be multiple times more than the next door neighbor.

[2sleepy]

Originally Posted by lvoc

Actually they do. They are limited in the amount. And the vast majority of the CA homes are located along the coast.

One can argue that the CA system is vastly unfair to the new buyer whose taxes reset on purchase and can be multiple times more than the next door neighbor.

compare housing prices in the Sacramento area to Reno, they are close. Say what you want about the tax system in California but I prefer it over being held hostage to the whims of the assessor in Washoe County. The weird thing about the 3% cap on appraisal increases in Nv is that if your house is appraised for more than that, they can spread the remainder of the increase out over the next several years, so if at the next appraisal your house value does not increase at all, and at the last appraisal it went up 6% your taxes will still go up 3%.

[lvoc]

Originally Posted by 2sleepy

compare housing prices in the Sacramento area to Reno, they are close. Say what you want about the tax system in California but I prefer it over being held hostage to the whims of the assessor in Washoe County. The weird thing about the 3% cap on appraisal increases in Nv is that if your house is appraised for more than that, they can spread the remainder of the increase out over the next several years, so if at the next appraisal your house value does not increase at all, and at the last appraisal it went up 6% your taxes will still go up 3%.

CA has a similar set up. Basically the same but 2% rather than 3%. Note also that CA jumps to the full 1% of value when sold. NV does not but continues at a max of 3%. Often a huge different when sold after some years.

In Clark County we are assessed at a good bit less than 1%.

[mitchmiller9]

California has Prop 13. Once you buy a house, the property tax cannot go up more than about 2% annually. There's also a way to transfer your prop 13 rate if you buy another house (I've forgotten exactly how that works since I'm a renter).

Anyway, a co-worker bought a house for $535K. The property taxes annually were only around $500 or $600 per year because the owner had lived there fifty years (she had died at the age of 94).

So long-time owners pay a really low property tax in CA due to prop 13.

[Ultrarunner]

The transfer is a one time deal to assist seniors in downsizing and is valid only if you stay in the same county or a handful of counties with reciprocal agreements.

As to the last part length of ownership is not a factor... only the fair market price at the time of transfer.

I paid 598k for my home in 2003... all 1725 square feet of 1958 Bungalow.

In 2011... a 10 year old home of 2500 square feet sold for 360k because of the Real Estate Crash...

So my new neighbor buying a much better home will always pay less taxes and he is the new kid on the block... my 12 years of ownership vs his 4 years...

[lvoc]

Originally Posted by Ultrarunner

The transfer is a one time deal to assist seniors in downsizing and is valid only if you stay in the same county or a handful of counties with reciprocal agreements.

As to the last part length of ownership is not a factor... only the fair market price at the time of transfer.

I paid 598k for my home in 2003... all 1725 square feet of 1958 Bungalow.

In 2011... a 10 year old home of 2500 square feet sold for 360k because of the Real Estate Crash...

So my new neighbor buying a much better home will always pay less taxes and he is the new kid on the block... my 12 years of ownership vs his 4 years...

And someone who owns a home similar to yours but purchased in 1976 will pay 25% of what the new guy pays.

SIL in Santa Monica pays less than $1100 on a home worth around 1.4 million.

[Ultrarunner]

Originally Posted by lvoc

And someone who owns a home similar to yours but purchased in 1976 will pay 25% of what the new guy pays.

SIL in Santa Monica pays less than $1100 on a home worth around 1.4 million.

Yes.. or even less.

I bought my home from the couple that built it in 1958... they were moving to a retirement community.

They are also the ones that paid the street assessment, drainage, sewer and utilities for all those years... kind of an early version of Mello Roos.

My elderly sellers last tax bill was $1200 or $100 a month

Based on my purchase price my tax bill went to $8,800 or almost $750 per month... no surprise there.

Here are my thoughts... the couple that sold me the home had 50+ years making it into the nice place it is and paid for all the infrastructure I get to enjoy...

The kicker is in 50 Years I plan to be the oldster with the lowest taxes on the block... or one of the lowest.

The beauty of Prop 13 is that it is simple, easy to understand and provides some predictability in Property Tax...

Prop 13 is not so rigid that is cannot be changed... this is why my tax rate is almost 1.7% simply because the voters here are generous... it only takes 55% voter approval to raise taxes to build a new school...

My sellers paid there dues and now it is my turn... besides their 38k social security could never afford the $9,400 taxes I just paid...

[2sleepy]

Originally Posted by mitchmiller9

California has Prop 13. Once you buy a house, the property tax cannot go up more than about 2% annually. There's also a way to transfer your prop 13 rate if you buy another house (I've forgotten exactly how that works since I'm a renter).

Anyway, a co-worker bought a house for $535K. The property taxes annually were only around $500 or $600 per year because the owner had lived there fifty years (she had died at the age of 94).

So long-time owners pay a really low property tax in CA due to prop 13.

No, under prop 13 your tax does NOT go up. I live in Sacramento County and my property tax is 1.15% of the price I paid for my home and it will remain the same as long as I own the home.

[Ultrarunner]

Not always...

Voter approval can add to the assessment this is how my rate is now almost 1.7%

Also, the inflation factor caps value increases at a maximum of 2% per year.