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Find a way to look closely at the details of the tax bill. For foreclosures, the extra water and sewer "taxes" on the bill might just be a long history of unpaid bills. They slap them onto the tax bill so it gets paid when the bank sells it (or they do here anyway). Your realtor should be able to help point out where to find the detail on the real tax rates.
The tax goes up every year and never comes down, it's for sure.
Actually, the tax may come down, as they have for many homes in the Phoenix area. We have lower tax valuations, and the budgets has been reduced by some local cities such that many get lower tax bills. As Mike said, it all depends on how the two variables of assessed value and tax rate are set.
My house is assessed lower by $60K and my taxes went up by $250. As MikeJ said, it's all about what the city needs from you. You can't do a thing about it except qualify for whatever exemptions there are: homestead, old age, limited income (but those are strict standards). Don't buy the max you can afford for just this reason. And if you buy in a condo or HOA, be aware they can hit you with assessments that can be $10K or more if the condo building needs a new roof or a/c or if the HOA decides the pool needs re-doing, etc.
Last edited by SouthernBelleInUtah; 09-08-2011 at 01:08 PM..
Thanks for your post and I will check out those links.
But for someone like me who has been considering buying in the future, how can I prevent or be aware of something like this in the future? Is there a way to know?
To keep taxes low, folks often move into unincorporated parts of a county, rather than within city limits. Usually cities charge a tax on top of the county taxes you are already paying.
Also different counties and different municipalities have different tax rates and they are subject to increases year after year. Sometimes there is a new tax that suddenly appears, such as for a major stormwater renovation or even a new football stadium. Areas that are growing a lot often get increases in school taxes because new schools are needed due to the volume of new students.
But it is very hard to predict what the future will bring for taxes.
You are very smart for looking at these things now. When we built a new home, we actually built it in such a way to keep the taxes as low as possible (smaller, fewer bedrooms, etc), picked an area with lower tax rates.
Even if you pay off your mortgage, you still have to pay the taxes each year. This could force you to sell your home if they get too high. It is a real issue that people face. Lots of folks sell due to high taxes.
> But for someone like me who has been considering buying in the future, how can I prevent or be aware of something like this in the future? Is there a way to know?
You have to do research into the area if it's that critical. Usually difficulties with the city budget that require big tax increases are not a surprise.
I think it is quite rare for taxes to increase dramatically although it does happen. Usually a slow upward march is more likely. If you own a house you have to expect generally increasing costs for taxes, heat, cooling, water, sewer, etc. etc. If you are really on the margin AND can't anticipate increasing salary then you are buying too aggressively.
Some towns do have special programs to control taxes for the elderly with lower incomes.
California for decades has had a limit on annual tax increases while you own a house. This has been great for long-term residents and a real big problem for those moving in.
Maryland's tax rate has not changed. In THIS particular property, the fiscal 2011 tax bill included over $3000 in sewer services and the fiscal 2012 tax bill included over $5600 in sewer services. This is decidedly NOT the norm. My sewer service for 2011 was $134.00.
This property was a foreclosure. Using the homeowner's name provided at the above linked site, you can go tohttp://www.mdcourts.gov and look up the case.
And if you're really curious about this or any other property in Maryland, you can sign up for access to the Maryland land records at http://mdlandrec.net. This link will allow you to search (for free) deeds, mortgages, assignments, etc. of all property owned in Maryland.
Best of luck in your search.
Terrific response.
An 80% increase is not normal.
Is it possible that a Special Service Adjustment was added?
This is not uncommon in some areas converting from well/septic or when major infrastructure renovations are required.
The local taxing authority should be able to explain the hike.
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