[Swigchow]

Originally Posted by WestieJeff

No, that isn't how it works.

They can triple your assessment, but regardless the taxes you pay will not increase more than 3% (owner occupied) year over year. If they triple your assessment then you'd be paying the 3% increase every year, but regardless it cannot increase more than 3% year over year.

What if it is not owner occupied?

[olecapt]

Originally Posted by Swigchow

What if it is not owner occupied?

8% per year. A second home is not owner occupied.

[trekwars2000]

So I just to my first Property valuation for taxes from the assessor's office. We closed on the house Nov 5 and the current property taxes to go into my escrow account (via payment to US Bank) is $319.35/month (or $3832/year). I am in tax district 505 which is like 2.8975 percent. So based on last years value of 374140 it comes out to roughly 3800 owed. Got tax year 2011-12's value of 290060 (which seems mighty low as the house sold new in 1993 for 283K - but I'm not complaining).

So my question is, then next years taxes will be $2900ish starting on July 1? I assume my payment to the escrow account (via US Bank) will just adjust ~$80 per month.

Also, with the 3% cap, does this now mean that if they were to adjust my home value more than 3% in the 2012-13 tax year I would only have to pay ~$3000 max (2900*1.03)? Or does the cap start from when I purchases my home and the taxes were $3800? Does my question make sense?

[airics]

3% per year it can go up.. not 3% for life...

[trekwars2000]

I'm still now understanding the 3% thing. Let me ask like this:
PT by year:
2010-2011: $3800
2011-2012: $2900
2012-2013: XXX

Can the value for 2012-2013 only be 3% higher than 2011-2012 regardless of what 2010-2011 was?

[airics]

lets make it easier on my head..

2011-12 $3000
2012-13 $3090
2013-14 $3123
etc..

[olecapt]

Originally Posted by trekwars2000

So I just to my first Property valuation for taxes from the assessor's office. We closed on the house Nov 5 and the current property taxes to go into my escrow account (via payment to US Bank) is $319.35/month (or $3832/year). I am in tax district 505 which is like 2.8975 percent. So based on last years value of 374140 it comes out to roughly 3800 owed. Got tax year 2011-12's value of 290060 (which seems mighty low as the house sold new in 1993 for 283K - but I'm not complaining).

So my question is, then next years taxes will be $2900ish starting on July 1? I assume my payment to the escrow account (via US Bank) will just adjust ~$80 per month.

Also, with the 3% cap, does this now mean that if they were to adjust my home value more than 3% in the 2012-13 tax year I would only have to pay ~$3000 max (2900*1.03)? Or does the cap start from when I purchases my home and the taxes were $3800? Does my question make sense?

The assessed valuation is always done the same way and is never adjusted.

The tax on the assessed valuation however is limited to a 3% per annum increase. So yes the calculated tax will be 2900ish, The maximum your taxes can be the following year is then 1.03 X 2900ish. It is a yearly increase thing...not from some base.

I have a situation where a house was vastly overtaxed for years as it was over 10% oversized...an error made 10 or more years ago by the assessor. The discussion on what they can and can't fix is fascinating. My client has been beaten out of about $30,000 in value but will still not be able to get the tax payments properly rolled back. And the case is vastly complicated by the tax limit...

[WestieJeff]

Your escrow amount will adjust, but not immediately and probably not until later than Jul 1st, but I imagine it depends on your mortgage servicer. Generally your escrow payment will not adjust until your escrow analysis date and this is usually done only annually.

Our property taxes went down from $2600/yr two years ago to $1800 this last year. Our escrow analysis showed 2 payments based on the decreased amount, but calculated the remaining two tax payments (which hadn't been paid yet) at the old higher amount. The end result was that our tax escrow amount is being collected a little more than needed, but eventually will be refunded to us, keyword eventually.

The 2nd part of your question, does the cap cover year to year or does it account from when you purchased the home initially. I called the treasurer and they told me in no uncertain terms that your owner occupied tax bill will never increase more than 3% year over year. Which is interesting since you get protection on the upside and the county takes all the risk on the downside. If property values had a steep decline and immediate bounce back, the county would be screwed with property tax collection.

Originally Posted by trekwars2000

So I just to my first Property valuation for taxes from the assessor's office. We closed on the house Nov 5 and the current property taxes to go into my escrow account (via payment to US Bank) is $319.35/month (or $3832/year). I am in tax district 505 which is like 2.8975 percent. So based on last years value of 374140 it comes out to roughly 3800 owed. Got tax year 2011-12's value of 290060 (which seems mighty low as the house sold new in 1993 for 283K - but I'm not complaining).

So my question is, then next years taxes will be $2900ish starting on July 1? I assume my payment to the escrow account (via US Bank) will just adjust ~$80 per month.

Also, with the 3% cap, does this now mean that if they were to adjust my home value more than 3% in the 2012-13 tax year I would only have to pay ~$3000 max (2900*1.03)? Or does the cap start from when I purchases my home and the taxes were $3800? Does my question make sense?

[Swigchow]

Property tax bill just arrived, down a combined 13% from last year. Whoohoo! How long before it reaches zero?

[airics]

Originally Posted by Swigchow

Property tax bill just arrived, down a combined 13% from last year. Whoohoo! How long before it reaches zero?

are you basing that on "total paid current year" vs. what it will cost for the 2012 year.?

if so , mine went down a whopping 50 bucks... but i did not appeal this year.