Taxes: real estate et. al. (Louisville, Anchorage: for sale, mortgage, credit)

[Windwalker]

I may be moving to Louisville for a possible job in the next few months from PA where we are taxed when we go to the bathroom (not really, but it seems like we are taxed for everything here). Seriously, the real estate and school taxes are 40% of our monthly mortgage payment. We did not know that school tax was added onto and based on the real estate taxes we did know about and figure into our budget. (We pay about $4500/year on a house we bought 8 years ago for $108k. A practically identical house next door could pay $1000 less per year as crazy as our tax figures are here.)

Having moved here from TN where taxes are quite low, we didn't figure enough for taxes when planning to live here, and we don't want that to happen to us again.

So now to the question: We will be looking to buy a house for $200-250k in Louisville. I know from reading other threads here that depending on the area our real estate taxes in Louisville will be something like $1.00-$1.20 per $1000. But will there be additional taxes, like a school tax, added onto that amount that I'll need to figure into our monthly mortgage/tax payment?

Also, what are state and personal property taxes like in KY?

[tomocox]

First of all your last question. You can expect to pay between $ 0.75 and $1.40 per $ 100.00 of your property's fair market value. This should include city & county governments plus school taxes and any special districts such as fire, ems, sewer, etc.

Secondly, there may be a $ 0.20 difference more or less for your specific address than the property next door. The only way to actually determine your property's tax is to contact the Property Valuation Administrator (PVA).

[Windwalker]

Thanks for that clarification, tomocox.

Is there a separate school tax added onto this, or is that included in property taxes?

How are schools funded there?

[tomocox]

I included school taxes in my numbers. Jefferson County's school tax is 61.5 cents per hundred dollars property value, Anchorage is 98.2, and Oldham County has a 65 cent rate according to the Kentucky Revenue Cabinet http://revenue.ky.gov/NR/rdonlyres/9...teBook5207.pdf.

[Windwalker]

Thanks. That helps a great deal. I looked at those websites but not knowing how taxes work there, it's confusing.

Basically, taxes are about 65% less than ours in Pittsburgh for the equivalent property. Amazing.

Which makes me wonder why, if anyone has the choice to live anywhere they want (a big if to be sure), why would anyone live in the northeast? When the snob factor goes away, there's not going to be anyone who can leave left here.

I'm just saying . . . not to offend anyone. I'm a damn Yankee still, but seriously, I think the South has finally won the Civil War economically.

Again, thanks for your help.

[tomocox]

Originally Posted by Windwalker

Thanks. That helps a great deal. I looked at those websites but not knowing how taxes work there, it's confusing.

Basically, taxes are about 65% less than ours in Pittsburgh for the equivalent property. Amazing.

Which makes me wonder why, if anyone has the choice to live anywhere they want (a big if to be sure), why would anyone live in the northeast? When the snob factor goes away, there's not going to be anyone who can leave left here.

I'm just saying . . . not to offend anyone. I'm a damn Yankee still, but seriously, I think the South has finally won the Civil War economically.

Again, thanks for your help.

Funny thing... Kentucky is as much north as south. We are actually the pivot point for far more economic activity than often given credit for. With the convergence of several major highways, principle rail routes, a huge portion of US river traffic, and mmm.. lets see.... there is something I seem to be forgetting....

oh, yeah... the best of the best in air cargo with UPS in Louisville, which also has the cheapest air connections to any US Airport, and with CVG (also known as Cincinnati International) plus, plus, and plus... KY is a great place to raise a family, build a career, and retire in comfort.

[Windwalker]

Yeah, KY is like WV--a border state that decides which it wants to be (north or south) moment by moment, it seems to me. MD seems the same as well.

I noticed the airfare from Louisville is cheaper than many other cities I'm considering. Now I know why.

[Windwalker]

So I found a house for sale for $160,000. The disclosure sheet lists the StCty tax as .867. So .867 x 160 = about $138? That can't be. So what's missing?

[tomocox]

A zero... your rate is per $ 100, not $1,000.

If you will PM me with the exact address, I will attempt to give you a more accurate review.

[Windwalker]

Ah! Duh! Thanks. That makes much more sense. (Obviously math's not my strong suit!)

Will do.