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Old 08-22-2008, 01:58 PM
 
Location: Not on the same page as most
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If property values decline, will property tax burden decline as well? Will homeowner's insurance costs decline? Any thoughts on how this will affect the bottom line? Thanks.
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Old 08-22-2008, 03:52 PM
 
Location: Looking East and hoping!
28,227 posts, read 19,613,598 times
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That's wishful thinking-they'll never do it voluntarily. Our assessment just went up higher than what we're asking. In 4 yrs. it has gone up $86,000 according to the taxman.
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Old 08-22-2008, 04:15 PM
 
Location: Venice Florida
1,380 posts, read 5,241,134 times
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Property taxes are handled differently in each state. Here in Florida the taxable value is supposed to be based on fair market value. In many cases the assessed value of property is still below fair market value. The local government still has the ability to adjust the millage rate. So I don't think we will be seeing major reductions in our property tax bill.

Insurance is based not so much on fair value, but replacement costs. The cost to build has not gone down as the RE market has declined. In fact the materials used to build have increased.
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Old 08-22-2008, 04:24 PM
 
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In my county, the assessed value was always way lower than the market value of the home. Our taxes are pretty low. However, I am sure since the market value has dropped, there is no way they will lower the assessed value even more. In two counties over, the assessed value was actually the market value of the house. In that county, house prices were very high and now they have dropped significantly.

A house that was purchased in 2006 for $705,000, is now listed for $465,000. The annual tax is assessed at around $7500 (rough figure) based on the $705,000 price. I am told if the house is bought for $465,000 or whatever price, the new owner can request a reassessment based on the new sales price. I have nothing to back this up if it's true or not but it was what I was told.
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Old 08-22-2008, 04:26 PM
 
Location: Great State of Texas
86,093 posts, read 72,469,891 times
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If your assessments go down then the rate will go up.
If the rate goes down then your assesment goes up.

Either way the government will get their money ..at least what they got last year if not more.
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Old 08-22-2008, 09:03 PM
 
396 posts, read 927,437 times
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It should. But as the above mentioned, the mill rate will go up! I like to call that taxation without representation...
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Old 08-22-2008, 09:58 PM
 
Location: Not on the same page as most
2,502 posts, read 5,575,231 times
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So let me see if I understand this:

Costs to build are high, so your house value/replacement costs for insurance purposes is high, so premiums are high

but if you're talking about selling your house, then the value is low, the bubble is over, and you need to give your house away for less than the cost to build it.

but if you are talking about taxes, they will just raise them regardless of current decrease in housing prices by changing valuation numbers?

If this is the case, we should all go live in a different country....this one's broken.
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Old 08-22-2008, 10:43 PM
 
Location: Not on the same page as most
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Maybe we need to start a grass roots revolution about the tax situation. How would we do that?
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Old 08-23-2008, 05:48 AM
 
Location: Stewartsville, NJ
7,577 posts, read 20,381,922 times
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My taxes actual went down this year..without any appeal! Same for all of my neighbors as well. Mine went down by almost $600.00/yr. It was a nice surprise : )
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Old 08-23-2008, 10:25 AM
 
Location: Not on the same page as most
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Quote:
Originally Posted by wileynj View Post
My taxes actual went down this year..without any appeal! Same for all of my neighbors as well. Mine went down by almost $600.00/yr. It was a nice surprise : )
Wow, that is amazing! Great to hear some good news.
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