How to calc prop tax on home you are buying (West: comparable sales, sales)

[gocubs418]

All,

I believe I know the answer to this question, however, I just wanted to be very clear before I purchase.

I am looking at a home for $350k and the total tax rate is 2.25 for example purposes.

The house was recently appraised for $270k so the tax bill is $6075.


If I purchase the home for $350k, will my tax bill be calculated off of the $350k tag or $7,875 (before homestead exemptions which is practically nothing.)

Thanks!

[FalconheadWest]

No telling. If they get wind of your sales price, yes, the tax value will increase. Even though they already have access to sales, the only way they can use them is if another home owner brings in your sale as a comparable to bring their tax rate down. You should be prepared for the higher number and be excited to be able to pocket the difference if they keep it at the lower number.

[gocubs418]

Originally Posted by FalconheadWest

No telling. If they get wind of your sales price, yes, the tax value will increase. Even though they already have access to sales, the only way they can use them is if another home owner brings in your sale as a comparable to bring their tax rate down. You should be prepared for the higher number and be excited to be able to pocket the difference if they keep it at the lower number.

Hmmm.... is there anyone to get an estimate before you purchase?

[FalconheadWest]

The "estimate" is the tax rate times your contract price. If it's lower, yay!

[qwerty14]

Originally Posted by gocubs418

All,

I believe I know the answer to this question, however, I just wanted to be very clear before I purchase.

I am looking at a home for $350k and the total tax rate is 2.25 for example purposes.

The house was recently appraised for $270k so the tax bill is $6075.


If I purchase the home for $350k, will my tax bill be calculated off of the $350k tag or $7,875 (before homestead exemptions which is practically nothing.)

Thanks!

The counties will not know the sales price as unless you, the new homeowner discloses it. They will send you a letter asking for the sale price a few days after you close, you can choose not to send it.
Also, you can challenge their assessment when the new tax bill arrives

[gocubs418]

Originally Posted by qwerty14

The counties will not know the sales price as unless you, the new homeowner discloses it. They will send you a letter asking for the sale price a few days after you close, you can choose not to send it.
Also, you can challenge their assessment when the new tax bill arrives

How could I challenge it to the old assessed value?

[FalconheadWest]

Originally Posted by gocubs418

How could I challenge it to the old assessed value?

You can't. You would have to bring in comparable sales to show them your house isn't worth what they want to assess it at. If you can bring in comps showing a lower price, I'm sure you would be buying the house at a lower price. I do property tax arbitrations for the comptroller's office. I hear these cases all the time. You must show actual data and not just "I want this price".

[gocubs418]

Originally Posted by FalconheadWest

You can't. You would have to bring in comparable sales to show them your house isn't worth what they want to assess it at. If you can bring in comps showing a lower price, I'm sure you would be buying the house at a lower price. I do property tax arbitrations for the comptroller's office. I hear these cases all the time. You must show actual data and not just "I want this price".

So pretty much, just expected the real tax rate.


Thank you.

[TurtleCreek80]

Originally Posted by FalconheadWest

The "estimate" is the tax rate times your contract price. If it's lower, yay!

This is the best advice.

[bencronin04]

Sorry to thread jack, but if we closed on our house on 12/31/15, do we file for a homestead exemption now or wait until next year?