$75k annual property tax - Saratoga (sales, house, transfer)

[80skeys]

Out of curiosity, if someone is paying $75,000/year property tax on a house in Saratoga, roughly what is the value of that property?

[ccm123]

Probably around 7.5 million assessed value. Generally, property tax is 1% or so of the assessed value.

[MediocreButArrogant]

Originally Posted by ccm123

Probably around 7.5 million assessed value. Generally, property tax is 1% or so of the assessed value.

It's always over 1%, because of the additional taxes associated with each tax district. For Saratoga it is closer to 1.16%. I round up to 1.2%, and figure 1/10th of 1% per month. That house with a $75,000 property tax bill is assessed at closer to $6.45M, not $7.5M.

http://www.sccgov.org/SCC/docs%2FFin...02011-2012.pdf

[HDL]

One of the homes that I like to follow in Saratoga near West Valley College has a tax bill of ~$92K and an assessed value of ~$7.8M. I am trying to recall which house that I was also watching has a tax bill of $129K , but I can't remember the address to check it out right now and find it's assessed value.

My thought was and always has been, with so many folks paying such exorbitant amounts in property taxes in various Bay Area cities, where the heck is all this money going to pray tell ????? Not services or roads that I can see .

Originally Posted by 80skeys

Out of curiosity, if someone is paying $75,000/year property tax on a house in Saratoga, roughly what is the value of that property?

[kdog]

Originally Posted by HDL

... with so many folks paying such exorbitant amounts in property taxes in various Bay Area cities, where the heck is all this money going to pray tell ????? Not services or roads that I can see .

Pensions for city workers who get to retire young.

[Wintermomma]

I was told to figure around 1.25% of the sales price, in taxes.

I've also wondered where all the money is going, especially in SJ. When a modest home costs well well well over $500K, why are the police being lain off and the schools so bad? Not to mention the apparent unchecked gang activity with graffiti everywhere.

[ccm123]

The money is going into pension funds and there is likely mismanagement of funds at all levels of government.

Originally Posted by Wintermomma

I was told to figure around 1.25% of the sales price, in taxes.

I've also wondered where all the money is going, especially in SJ. When a modest home costs well well well over $500K, why are the police being lain off and the schools so bad? Not to mention the apparent unchecked gang activity with graffiti everywhere.

[sonarrat]

Originally Posted by HDL

One of the homes that I like to follow in Saratoga near West Valley College has a tax bill of ~$92K and an assessed value of ~$7.8M. I am trying to recall which house that I was also watching has a tax bill of $129K , but I can't remember the address to check it out right now and find it's assessed value.

My thought was and always has been, with so many folks paying such exorbitant amounts in property taxes in various Bay Area cities, where the heck is all this money going to pray tell ????? Not services or roads that I can see .

They pay it because 1.25% is amazingly low and they will have a Prop 13 exemption they can pass on to their next generation so by then, with inflation they'll be able to afford the property taxes on their own.

[Ultrarunner]

Originally Posted by sonarrat

They pay it because 1.25% is amazingly low and they will have a Prop 13 exemption they can pass on to their next generation so by then, with inflation they'll be able to afford the property taxes on their own.

I believe there is a limit in some instances on what can be passed forward and still retain Prop 13...

Some transfers may be limited to a 1 million lifetime cap.

I not well versed because it is something I don't have to worry about.

http://www.boe.ca.gov/proptaxes/faqs/propositions58.htm

[marcopolo666]

Originally Posted by 80skeys

Out of curiosity, if someone is paying $75,000/year property tax on a house in Saratoga, roughly what is the value of that property?

The property tax is paid on the assessed value of the house, NOT the "market value". If someone has lived in the house for a long time, the assessed value is likely lower than the market value, possibly quite a bit lower, due to proposition 13 passed back in the 1970s. This trend changed around 2008 when the housing market imploded, but somebody who has been in their house since 2002 (or earlier) probably has a lower assessed value than the actual resale value.