Househunting-Douglas county taxes blow my mind (Denver, Parker: sale, HOA fees, condo)

[Fraser77]

We've been househunting, online mostly so far. I keep seeing awesome homes in Castle Rock, many in our price range, but the TAXES!!!! I found a great house for 675,000, but taxes are listed as 14K annually. That's crazy. Same prices elsewhere list taxes much lower.

Why are Douglas county taxes so high?

[chilicheesefries]

Originally Posted by Fraser77

We've been househunting, online mostly so far. I keep seeing awesome homes in Castle Rock, many in our price range, but the TAXES!!!! I found a great house for 675,000, but taxes are listed as 14K annually. That's crazy. Same prices elsewhere list taxes much lower.

Why are Douglas county taxes so high?

Wow! That seems more than a little too high. Are you sure it's accurate? The taxes vary depending on where you live since it's stacked and can include county, city, water district, library district, sanitation district, fire district, etc.

I live in Centennial and pay 1900 for a house worth about half that. I have friends who live in a million dollar house in Castle Pines North with 9500 tax payment so it is higher in Douglas than Arapahoe but 14K seems a little extreme.

[bhcompy]

While I never saw that amount, the newer areas of Douglas that I looked(parts of HR and south Parker) had higher taxes(sometimes double) than older areas of the same cities. Basically, you're paying for infrastructure. I don't know if they're officially like Mello Roos bonds, but that is essentially what I believe they are

[2bindenver]

I would look up the assessor data on the county's website. Most property taxes around Metro Denver are about 1% off assessed value.

If the taxes are twice as much they may have a special taxing district to provide infrastructure/pay off bonds or it may be a distressed sale and the valuation is way off.

[mczabe]

That sounds more like NJ property taxes to me.

We're in DC and our taxes are definitely around the 1% mark. They must be either wrong or part of a special situation - not nearly what's "normal" throughout the county.

[livecontent]

You will find that many of the richer housing developments have a secret that does makes the taxes higher but gives them a big benefit. This is a previous post of mind:

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"There is another way to have HOA fees that make them a tax deduction. The rich do it all the time. A special taxing district is formed that collects the HOA fees (taxes) on the property tax bill of the county--then it is fully deducted.

Of course that method is not transmitting to the working middle class--they are all stupid and ignorant. The government is not going to tell you; they want more taxes. The overpaid government administrators and legislators are not go to stop this practice because they live in these communities.

I have a relative who lives in a expensive gated development and his tax bill includes his homeowner's association fees, camouflaged as a taxing district. He thinks it is hilarious and he laughs all the way to the bank.

That is how the rich get richer and the we, the slobs, pay more taxes. I think it is all very funny. There is one good thing about these expensive gated communities--we will know where to get them, when the revolution comes."

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Just to note that my relative, that I referred to in the post, lives in Lone Tree--Heritages Hills.

Livecontent

[Dreaming of Hawaii]

Actually, special districts are formed all the time in various communities in Colorado, not just the ones where the rich people live. Usually they are a way for the developer to pass on development fees to the homeowners. I've seen special districts for building roads in a new subdivision and special districts for providing water where there are no city water lines to serve a new development.

While it is true that money is collected through the property tax, special districts are NOT just a tool for rich people in expensive gated communities.

[Fraser77]

THANKS! You guys are good-o.k., the advice helped and I looked up the taxes on that property I mentioned. FWIW, this particular listing DID turn out to be higher than others in Douglas county. (Though Douglas taxes are higher than most, as some kindly affirmed.)

This listing is in Bell Mountain Ranch. The taxes include a "consolidated Bell Mountain Ranch Metro Dist" with whopping tax mills that are a twice+ what this property's school total tax mills are.

Now I'm intrigued. This property is a beauty, probably too big for us anyway, but gorgeous. It sold (or so the assessor's site reads) for just shy of $900K in 2002, now listed for $675K. It's being taxed on valuation of just over $1 million. (per assessor site, so that is apparently an accurate number, ouch)

Thanks for the feedback and tips.

P.s. DreamingofHawaii, DH says you are right--looks like Bell Mountain Metro Dist. is wringing the $$$$ out of these homeowners via (their) private bonds to be repaid (by homeowners). Might be wrong, though.

[livecontent]

Originally Posted by Dreaming of Hawaii

Actually, special districts are formed all the time in various communities in Colorado, not just the ones where the rich people live. Usually they are a way for the developer to pass on development fees to the homeowners. I've seen special districts for building roads in a new subdivision and special districts for providing water where there are no city water lines to serve a new development.

While it is true that money is collected through the property tax, special districts are NOT just a tool for rich people in expensive gated communities.

Yes, we all know all about those special districts and their purpose to provide development. This is not the same issue that I pointing out to everyone.

I am specifically addressing special district formed for housing developments that hide the homeowners association fees in the taxes collected by the county, so they can evade paying taxes--and you know that; you are trying to cover the real inequity that exist. Well, we are all not that dumb.

This kind of methods to manipulate the local taxes is prevalent in rich areas because they have the expertise, money and influence to put it into play.

Many condo owners and single family property owners pay homeowners fees directly and are not able to have those payments as a tax deductions.

I am telling all you readers that the rich are gaining a benefit because of their abilities to manipulate the laws. It should make you sick and angry. You do not believe me then check the tax records of many of these communities. I know you are numb with all the disclosures of fraud, deceit, bailouts, and bonuses for the rich; so this is just another small sin that will be ignored--but not forever. A day will come...

Livecontent

[Fraser77]

Now reading Bell Mountain Ranch financials --very "creative". Looks like the way it's set up, well--it isn't good, (more like evil genius) and the homeowners pay. In a nutshell, this subdivision's financing reads like a bad episode of the Sopranos. Whoever mentioned New Jersey, that seems apt.