Property Taxes

[janclan]

Does that mean if I bought a home for $500,000, my taxes for the first year would be around 5500. year two $5610, year three $5722. ... when does it end?

[shiphead]

Originally Posted by janclan

Does that mean if I bought a home for $500,000, my taxes for the first year would be around 5500. year two $5610, year three $5722. ... when does it end?

Sounds scary. Maybe that's why my parents moved out of that place.

[wburg]

Considering that inflation goes up about 3% a year, that means in real adjusted dollars your tax rate is going down: $5500 in 2009 dollars in year 1, $5610 in 2010 dollars (but 5388 in 2009 dollars) in year 2, $5722 in 2011 dollars (but $5278 in 2009 dollars) in year 3, and so on.

Considering that your mortgage payments (assuming you are borrowing about 400K) for the same year will be around $30,000 (not counting PMI etcetera) it doesn't seem like such a big pinch.

[shiphead]

Without accounting inflation, the property tax percentage rate in Sacramento,CA is 1% every year? Or does it go 1,2,3,4,5,6,ect...? I want to make sure i understand how it works in the republic.

[wburg]

It doesn't necessarily go up: if your property value goes down, you can get re-assessed at a lower rate.

[shiphead]

I see. Thank you wburg.

[GLS]

Originally Posted by janclan

Does that mean if I bought a home for $500,000, my taxes for the first year would be around 5500. year two $5610, year three $5722. ... when does it end?

The actual rate varies depending upon your County and local assessments.
Perhaps a specific example will help. I live in El Dorado County and my Land is assessed at $93607, with "Improvements" (house, garage, outbuildings,etc) at $319207. Therefore, total assessed property value= $414,914.

The first adjustment is a "homeowners exemption" which decreases the taxable value by $7000 to a net value of $407914.

Taxes (7/1/08 to 6/30/09):

Prop 13: General tax levy 1%: $4,079.14
El Dorado High School bond-1997: 20.39
El Dorado High School bond-2008: 64.45
Los Rios College bond-2002: 30.18
TOTAL GENERAL TAX: $4,194.16
El Dorado Irrigation District 9.72
CSA#10 Solid Waste: 17.00
CSA#10 Liquid Waste: 15.00
CSA#10 HSE Hazardous Waste: 3.00
Pleasant Valley Fire Dept: 42.00
CSA7 Ambulance West Slope: 25.00
TOTAL TAX AND DIRECT CHARGES $4,305.88

TAXES LAST YEAR: $4158.70
2006 TO 2007: $4081.16
2005 TO 2006 $3989.96

I hope the above helps. To answer your specific question....it never ends, and it's going to get worse.

[suzie02]

Don't forget the Mello-roos(sp?). Ours is over 2000 plus the 1% for a total of almost 6000.
In GA we paid 2k for a larger home.