Property Tax Reassessment (Cary: house, to buy, new construction)

[sanrene]

So...looking through some homes I am interested in. I am noticing an approximate reassessment of 30-30% increase in assessed valuation. Even though the tax bills will not be out until July, I was informed by a wonderful gentleman at the Wake County Tax office that the new assessments ARE reflected in the assessed value now.

This is quite an increase in property tax payments. That is one of the things that make this area so attractive - low property taxes. Not anymore it seems.

What's the feeling by the natives - good, bad, indifferent?

It's still a bargain by Illinois standards, which is where I am. When it comes out in the wash, I pay about 2-2 1/2% in property taxes.

Just kinda took me aback, seeing the increases.

[sls76]

I think it's supposed to be revenue neutral, so the tax rate will go down. I think Wake County's portion will decrease from $0.67 to $0.53/$100 (based on preliminary estimates). I live in Cary and we also have an addition $0.42 tax which hopefully will go down too. It does make it tough when you're looking to buy and you won't know your tax bill until July.

[MrsSteel]

Just in case you didn't realize it, tax assessments are conducted every 8 years here. This was one of those happy years. But this means that the tax assessed value will remain the same until 2016. So that's nice.

Tax rates vary by area and can change. I think rates in this are range between 1 to 1.4% but as sls said, that isn't set in stone. Still pretty good if you ask me.

[sls76]

Originally Posted by MrsSteel

Just in case you didn't realize it, tax assessments are conducted every 8 years here. This was one of those happy years. But this means that the tax assessed value will remain the same until 2016. So that's nice.

Tax rates vary by area and can change. I think rates in this are range between 1 to 1.4% but as sls said, that isn't set in stone. Still pretty good if you ask me.

I have heard Wake is considering doing them more than every eight years going forward. I agree with Mrs. Steel, tax rates are still fairly reasonable. My parents pay over 2% in Michigan.

[sanrene]

The nice gentleman did say the WC tax rate would LIKELY be .53/100. Will know for sure after then budget/revenue crunching, so he said don't quote him on that.

As far as new builds go, that aren't yet sold, how does that work? The assessed value is very low for most built in 2006/2007/2008. Once you have occupancy, is it then assessed or do you get that low assessment for the next eight years?

[sls76]

Originally Posted by sanrene

The nice gentleman did say the WC tax rate would LIKELY be .53/100. Will know for sure after then budget/revenue crunching, so he said don't quote him on that.

As far as new builds go, that aren't yet sold, how does that work? The assessed value is very low for most built in 2006/2007/2008. Once you have occupancy, is it then assessed or do you get that low assessment for the next eight years?

My home was built in 2006. For 2006, we only paid taxes on the assessed value as of 1/1/06 (which in our case was the value of the land). At some point in 2006, they assessed the house so in 2007 we paid taxes on the assessed value which in our case was about 80 percent of what we paid. Our assessment then increased about 30% (to about 105% of what we paid in 2006 and more than our home is currently worth). So, I would expect if you buy new construction in 2008 that your 2009 property tax will be based on an assessment which will probably be pretty close (maybe within 10 percent on either side) to what you pay. I will say that Wake County's assessments are somewhat unscientific because they generally base it on the size of the home which they don't know how to measure (they have my house off by 400 square feet).