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We live in High tax anything that sits, walks or talks California.
Out here we do have Proposition 13. That helps all home owners. Prices can go up all they want and the biggest tax increase I will get is based on the value of the property when I bought it. Valuation can increase at 2% a year and then we are taxed on the new valuation. The county does not always increase the value of a home each month. While our neighborhood is in the $500,000+ range now, our tax value is in the low $300,000 range. We paid $310,000 for the home in 2010. Next door my neighbor inherited her home from her parents. They bought it in 1975. I think when Proposition 13 came about in the late 70's their home would have been valued at maybe $60,000.
In California you can sell your home and buy a home of the same of less value in the same county and keep your tax status. You can also move to another county that has an agreement with your county and keep your tax status. A couple counties have a deal where you can sell your home in your county and move to one of these counties and keep your tax status. Some people do that because they are rural counties with lower cost homes. Cashing out but staying in the state.
So let's say you were paying $6,000 annually in property taxes and now you're down to $4,500. That's a little over $100/month in savings. Nice, but not world breaking.
The CO senior exemption is actually 50% on the assessed value, up to a maximum of $200,000 assessed value. So if you have a $200,000 assessment it's cut to $100,000. But if it's a $500,000 assessment it gets cut to $400,000.
I'd guess it's worth $50-$75 per month in most areas.
Just reading about the huge property tax bills in some locales on here, leads me to believe that is a major reason why we have disagreements on how much income one needs to retire on.
I'd be out working until I hit the grave, if I had one of these bills.
Just reading about the huge property tax bills in some locales on here, leads me to believe that is a major reason why we have disagreements on how much income one needs to retire on.
I'd be out working until I hit the grave, if I had one of these bills.
I'd agree with that.
Until I joined CD, I never realized how lucky I am to live in a state with low property taxes.
If I followed my kids to California and retired there, my property taxes would go up by at least 4X for an acceptable house.
Until I joined CD, I never realized how lucky I am to live in a state with low property taxes.
If I followed my kids to California and retired there, my property taxes would go up by at least 4X for an acceptable house.
Sounds like you are screwed if you move to California and buy a house. You pay a fortune for the house
and then pay very very high property tax. If you lived there and bought long time ago your golden..
Sounds like you are screwed if you move to California and buy a house. You pay a fortune for the house
and then pay very very high property tax. If you lived there and bought long time ago your golden..
Everyone thinks of CA, NY, and NJ as having high property tax...but in IL I have a quite modest 3 bedrm, 2 bath house and I pay more than $4k a year in property tax - I shoulda had kids to at least make that more worthwhile!
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Originally Posted by Willistonite
Sounds like you are screwed if you move to California and buy a house. You pay a fortune for the house
and then pay very very high property tax. If you lived there and bought long time ago your golden..
of a zillion co-workers who were 'displaced' from CA (1960s-current), the vast majority of the 'long-term thinkers' retained their Prop 13 properties while in exile, and are now happily and affordably retired back in CA.
When CA allowed their over inflated prop valuation equity to flee the state (bad idea), it ruined the affordability of housing in all of the adjoining and nearby western states. Fleeing CA equity ruined CO, MT, and WY by 1990, displacing millions of lifelong residents. (due to property tax and valuation increases). No real benefit to home owners, as if housing prices increase and you must stay in region for family or employment, you either pay the increased tax, or downsize to the cardboard shack under a bridge..
We've all seen the recent news stories about the tight real estate market. In many locations, especially in desirable metropolitan areas, property values have zoomed up since the last reassessments occurred.
Locally, we've seen some increased valuations, and properties were reassessed, I think, this spring or so, and are on a four year reassessment schedule. Our property tax rates here are pretty low as well, so owners won't feel as much of an impact as they will in areas that tax at a higher rate.
We're an older than average community with a lot of retired folks on (low) fixed incomes. My grandmother's taxes went up nearly 33% - from $600 annually to roughly $800. That's not a big increase, but is concerning for lower fixed income people. Now consider how big increases might be in areas like Dallas. Dallas is absolutely on fire and TX is a very high property tax state. These increases could really be burdensome for a retired Dallas couple on a fixed income, as the property has not only soared in value, but the rates are so high that owners are going to see increases of perhaps thousands of dollars per year. TX may offer some senior exemption or cap, but I'm assuming just straight increases for purposes of discussion.
Should states with high property tax rates provide some sort of cap on increases or exemptions for seniors? I wouldn't think it would be unreasonable to think a reassessed property's taxes in a high tax state like TX may be $3,000-$4,000 a year. With values continuing to rise, what can we do to hedge fixed income seniors against massive property tax bills?
perhaps a fair solution would be to exempt the owner property taxes up to median price for the city or county.
This would ensure people are mildly encouraged to dispose of large homes to save on taxes. Thus if you choose to have a costly home you pay taxes on the value above median.....
It would be fair and would provide some relief to a group that is going to find itself struggling more and more . and it would be a little more progressive for a nation that is very recessive in its taxation.
On Long Island where I live and much of the east or west coast metro areas, taxes are ten times the amount. Taxes on a modestly priced 3 br house can easily exceed $10,000.
lol. I've heard of that kind of thing.
I've always been positively, astoundingly bumfuzzled by the fact that people are willing to pay property taxes of that size.
Everyone thinks of CA, NY, and NJ as having high property tax...but in IL I have a quite modest 3 bedrm, 2 bath house and I pay more than $4k a year in property tax - I shoulda had kids to at least make that more worthwhile!
You would pay $12K-15K in taxes for that house on Long Island.
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