80% Property Tax Increase... Loosing my Home? (Seattle, Custer: rental, pharmacy, allergies)

[jiffin4java]

All this tax stuff has me concerned now. My husband is starting his air traffic control career at PDX in a month or so and we were planning to buy a home near Camas, WA (hopefully by Christmas) rather than in OR because I've heard such good things about the people and the schools. Now I'm not sure what to think about buying a home in WA. It seems the houses are less expensive, but are taxes going to come around and bite me in the rear to make up for it? Or am I going to have the same issues no matter where we buy, WA or OR?

[StealthRabbit]

Prop tax rates are similar, but OR can be less in certain cases (they use RMV rather than FMV), such as... one OR county told me that I would pay on ~50% of the appraised value of new construction, and can use my cost basis as an argument. WA MUST use 100% of Fair market value according to law, and that value can be subjective depending on comps and aggressiveness of assessor.

As I mentioned in the other thread... buy cheap... a fixer, or and trashed mobile and build a shop and live in a nice apartment that the assessor can't see, forest land and ag gets tax breaks ($3000/yr income required on ag, and you need to show 5 yrs). Unfortunately Clark County is pretty aggressive, and just the dirt under my home is valued at $300k (5acres, 1 acre usable)
At Mil Levy of $12 / thousand, I pay $3600/ yr just for my dirt; the house and improvements are extra (decks, slabs, dog house / storage shed, barns, woodshed, shop). It cost me $40/sf to build it and it is assessed at over $200/sf, all appliances are pretty worn out, (some were used when we built, and much of our material was used) same with carpets / paint / window coverings...

There is a book out on building a 'low-tax' house. (no build-ins, islands on casters, use lofts and basements for maximum SF, keep your main floor small, use materials that can get it rated as 'below-average-construction', (you can change later). Don't sheetrock before August, to delay 'completion' status for one yr....

If you have a job, you can probably pay taxes on a 'normal' $250k home (~ $3000/yr). If you don't have a job, and have a home you bought or built cheap and that the assessor really likes (waterfront / view...) then you will feel some pain, and may be forced from your home. Nothing new to me, it happened to my parents and grandparents who each had to leave their farms which had taken a lifetime to build... It might be genetic ! But, I did meet several WA retirees today that are facing the same problems. Since you are coming for the job, you can probably handle the prop taxes, but it should be factored into your WA / OR choice. Since you have need of schools (and special needs?) OR has poor school funding, so probably better add the costs of private schools to your OR costs. BTDT, glad I survived kids with single income (including elder care for a sick father for 32 yrs). Everyplace has taxes, so you need to plan accordingly. I would guess / hope... that the 20%/yr valuation increases are about over in WA. But it is a cache 22, as I don't see the gov getting any smaller, so I expect minimal tax reductions, if any.

[jiffin4java]

If I'm understanding this right, it all boils down to pay less taxes in Oregon and have less than ideal schools to help my special needs son succeed (and then I STILL end up having to homeschool) or pay a little higher in WA and have schools that may be able to help/handle my son. (Not that Oregon schools are necessarily "bad", just not likely to be able to offer the services my son will probably need.)

Thank you, Janb! You've given me a TON of information in the last couple weeks and I really appreciate all the help you give.

[cdelena]

Originally Posted by jiffin4java

If I'm understanding this right, it all boils down to pay less taxes in Oregon and have less than ideal schools to help my special needs son succeed (and then I STILL end up having to homeschool) or pay a little higher in WA and have schools that may be able to help/handle my son. (Not that Oregon schools are necessarily "bad", just not likely to be able to offer the services my son will probably need.)

Thank you, Janb! You've given me a TON of information in the last couple weeks and I really appreciate all the help you give.

You may have to do some detailed research since it will vary by location around the Portland area. In the few properties I looked at in Portland the rate was about the same as in Washington but the prices were higher for comparable housing. A number of factors, with the state income tax primary, prompted me to find what I wanted in Washington.

(BTW, the tax rate is still less than half of what I was paying in Texas).

[jiffin4java]

Originally Posted by cdelena

(BTW, the tax rate is still less than half of what I was paying in Texas).

LOL! That's good. I'm not sure about the taxes in TX. We were only here for a year and rented. We owned a home in MI but sold after 2 1/2 yrs to move to CA. Our taxes were included in our house payment. Is that usually the case there in WA?

[Ultrarunner]

Taxes can be included with the House Payment... but realize your House Payment will increase when taxes are increased...

[jiffin4java]

Thanks, Ultrarunner. I just like the idea of consolodating bills as much as possible...less to try to keep track of. LOL!

[WalkingHorseLady]

The book janb speaks of is "Your Low-Tax Dream House" by Steve Carlson (a former tax assessor). Below the title it says "A new approach to slashing the cost of home-ownership". This is an excellent book for anyone building, no matter the construction type. I myself am going to start soon on a butt-and-pass log home Log Home Builders Association | Log homes & log cabins from scratch - don't buy kit log homes in Clallam County. I am tired of the Texas heat and sun.

WalkingHorseLady

[stingray427]

Originally Posted by Ultrarunner

To Sandy and JanB

Thanks Guys for for the detailed posts... I e-mailed you, JanB, the other day and guessed that you were probably out and about.

The proposed Assessor value on January 1, 2007 is 49% higher than my very detailed loan appraisal from December 2005. I don't have anything more current.

The most recent comparable sale I can find on a similar 30 year old home and land is from 2005. All the others comps are on homes built within the last 5 years.

I feel I have no choice other than to appeal... the kicker is the land my home sits on was large enough for a second home until my neighbor's pasture was declared a wetland and the resulting buffer zone which now encompasses just about all of my land makes my land unbuildable... part of my home is also in this zone.

I stopped by the county to enquire about expanding my septic and was told the wetland buffer would be a tremendous obstacle to overcome.

If anything, I would think the above factors would be grounds to reduce my valuation.

Stingray427... my effective Washington tax rate for this year is 1.17% or just about the same as my friends in California... however, the actual tax amount they pay can only be increased by 2% each year aside from additional specific voter approved items.

Unlike Washington, California assessments are NOT subject to the opinion of the Assessor.

JanB and Sandy, what would happen if I were to market my home at the new 80% higher value and not find a buyer... would this be sufficient grounds to lower my assessment?

So are you saying the california taxes aren't as bad as Washington's?

[stingray427]

Originally Posted by jiffin4java

LOL! That's good. I'm not sure about the taxes in TX. We were only here for a year and rented. We owned a home in MI but sold after 2 1/2 yrs to move to CA. Our taxes were included in our house payment. Is that usually the case there in WA?

Same here property taxes here are included into monthly mortgage which is great.