Looking at RC (Rapid City, Custer: crime, mortgage, hotels)

[ElkHunter]

I don't know yet. I have an accountant and I set him up with a fund. He does the taxes and writes a check. I just make sure he's got enough money in there. I can guess what it's going to be pretty close. Just let's me know when it's all said and one. I know he's done them, just hasn't sent me a letter telling me how bad they were. haha

[Jammie]

Well, if the bill was even passed into law (which I'm not sure of), it wouldn't take affect this year yet. I don't think it would have anything to do with our income tax. It's just change our property taxes and we probably won't see that until next January. If you find anything out on it, let me know cause I wasn't able to follow the bill. (I probably wouldn't have understood the full impact of it anyhow)

Just wanted to add this about the property tax break we get~you only get it if you actually live in the house. It doesn't apply to a house you buy and rent to others.

[ElkHunter]

Jammie, you asked about a different levy depending on area. Rapid City being high where as it being cheaper a few miles from town.

Two things drive this.

1) Amenities. More street lights, more fire hydrants, curb and gutter, storm sewer system, etc makes the need for a higher tax.

2) The state wanting growth and wanting people to move into the less populated areas makes the need for a lower tax. Once that area gets filled up, they'll raise it so people stop moving there and move further out.

You've read the papers, what kind of taxes is Cabelas paying the first 5 years as compared to what they will pay after the 5 year grace period? haha

[blackhillsdreams]

Originally Posted by ElkHunter

Jammie, you asked about a different levy depending on area. Rapid City being high where as it being cheaper a few miles from town.

Two things drive this.

1) Amenities. More street lights, more fire hydrants, curb and gutter, storm sewer system, etc makes the need for a higher tax.

2) The state wanting growth and wanting people to move into the less populated areas makes the need for a lower tax. Once that area gets filled up, they'll raise it so people stop moving there and move further out.

I agree and also disagree... all of the items you mentioned in #1 are one time items that last many years and are often paid for by various aspects of the developers that take a piece of land and develop it into a subdivision. The stuff the city picks up (storm, sewer, etc.) is also funded by impact fees for levied on each parcel as they are being permitted. With construction costs and new construction in a tail spin, there is no reason to take the highest increase in taxes every single year and spread that across everyone in Rapid every year. I'm not certain the people there are getting what they are paying for... I know the taxes cover snow plowing, road maintenance, and tons of other things, I just don't know that the people of Rapid are getting a return on their investment.

[ElkHunter]

Well, because of the cold/hot conditions, these amenities wear out quickly and have to be maintained at a pretty tough cost.

It's only been the last few years that there were actually subdivision developed in South Dakota. Just a few years ago the city would cut in an area and put in streets, sewer, water, storm sewers and such. So you could say the city was the developer. But these tax levy's were set up years ago. Modified quite often since then though.

[blackhillsdreams]

Originally Posted by ElkHunter

Well, because of the cold/hot conditions, these amenities wear out quickly and have to be maintained at a pretty tough cost.

It's only been the last few years that there were actually subdivision developed in South Dakota. Just a few years ago the city would cut in an area and put in streets, sewer, water, storm sewers and such. So you could say the city was the developer. But these tax levy's were set up years ago. Modified quite often since then though.

True. I agree the winters take their toll. I guess my point is, here in FLA, I paid about $1725 in property tax last year on my house which is about a $180,000 house in today's market. I think in Rapid, it would be more than double that amount. Some will say there is no state income tax in SD, there isn't here either. Winters take their toll, but our cities have year round maintenance for the plants and roadsides. I'm just not sure where Rapid is spending the extra couple grand per house they are getting compared to here.

[ElkHunter]

I'm sure they try to justify it.

Like you mentioned, you have shrubery to maintain. In Rapid, they also have shrubery, but like you mentioned, only in the summer. In the winter they have snow removal, sanding intersections, putting chemicals down to melt snow. Spring they have to clean up all that sand and chemicals. But the chemicals make their mark on the pavement and wear it out quicker.

My folks had a place about 18 miles out of Rapid City. The City and County made that area a "Comprehensive planning zone." In other words, they made it adhere to City Standards. First they raised taxes. Then they started running water lines and sewer lines in that direction. They beefed up the fire departments in that direction. You'll see fire hydrants 15 miles out of town. They started paving what used to be gravel or even dirt county roads. Started putting in curbing in some places. Few street lights here and there.

Their idea was that in "so many" years, that area would be in the city limits.

My folks had about 3500 sq ft, on 10 acres. Their taxes went up to around $4000 a year. But that was 10 years ago.

[DannyBanany]

I too don't see where Rapid City's high taxes go. For the past few years, we had a mayor and a council that were just a little too interested in the arts and they didn't take growth into much consideration. Since we've got a new (better) mayor and council, growth has become the first initiative.

These "comprehensive planning zones" often times do not make much sense. Some of these zones are so far out of Rapid City that I doubt they would ever be annexed and then some places are 2 feet out of city limits and they get the big tax break. That's why when people ask where to move outside of Rapid City in order to avoid the taxes I say it depends.

My uncle bought a house in Rapid City in the 70s for about $19k. Today it's probably worth $180k, but the tax appraisal is $225k. Of course, he'd never get $225k if he went to sell his house, but that is what the IRS values his home at and that's what he pays. His annual taxes run just short of $5000.

[blackhillsdreams]

Originally Posted by DannyBanany

My uncle bought a house in Rapid City in the 70s for about $19k. Today it's probably worth $180k, but the tax appraisal is $225k. Of course, he'd never get $225k if he went to sell his house, but that is what the IRS values his home at and that's what he pays. His annual taxes run just short of $5000.

OUCH! That to me sounds absolutely crazy. That's over $500 a month just in property tax for a 30 year old house. There is absolutely no way those taxes can be justified for the impact that one house makes on the community. Let's say someone wants to purchase a $225,000 house in Rapid and puts $50,000 down, finances $175. They will be paying around $1850 a month for 30 years fixed. Unless that is a solid two income family, I don't see where this is possible and those figures don't take into account inflation, or annual tax increases. I don't see how anyone in government sees this as sustainable at any rate... Let's not forget, almost nobody has $50,000 to come with a downpayment unless you flipped out of some other property that went up at the top of the market and played your cards wisely.

[Jammie]

I agree that our real estate taxes are too high here. It's the same way in Texas. But there could be other things involved. I'm not sure how much you pay for license plates in Fla. Am I correct that you have a personal property tax there? I'm not justifying our high taxes, just wondering if there may not be other factors involved.