Property taxes? (Columbia: sales, rentals, HOA)

[wakeful dreamer]

We're thinking of moving to the Columbia area. In looking at homes, I found one website that listed estimated property taxes. For homes in the $200s in Howard and Pr. George's counties, they estimated taxes between $3500 - $7000+ !!! Holy cow!!!!! Do you guys really pay that much, and how can you afford it? And what do you get in return??

[North Beach Person]

In some counties the answer is: yes taxes are that high. If you're in an incorporated municipality they are a bit higher (although you usually get somewhat of a break on County taxes). Also, don't forget HOA dues if you're in one. Levels of service vary, some areas will include trash pickup in addition to the traditional police, fire, schools, roads, etc. Water and sewer (if you have those) capital costs might also be included on your tax bill as special assessments.

[Ann Alison]

I think that, with a few exceptions, property taxes are about 1% yearly of the assessed value of the property. For a $200k house you should pay around $2000 a year. Since this is a high-cost area, and in the last few years house prices were artificially even more ridiculous than normal, the assessments and tax rates were also ridiculous. They actually had to phase-in the increases over a few years so people could go get 2nd or 3rd jobs to be able to afford their property taxes. Bang for the buck? No. But at least one person told me her assessment finally started to go back down, although it can't go down more than a certain amount per year. Unfortunately, that's one more reason to wait to buy. Good luck.

[North Beach Person]

Originally Posted by Ann Alison

I think that, with a few exceptions, property taxes are about 1% yearly of the assessed value of the property. For a $200k house you should pay around $2000 a year. Since this is a high-cost area, and in the last few years house prices were artificially even more ridiculous than normal, the assessments and tax rates were also ridiculous. They actually had to phase-in the increases over a few years so people could go get 2nd or 3rd jobs to be able to afford their property taxes. Bang for the buck? No. But at least one person told me her assessment finally started to go back down, although it can't go down more than a certain amount per year. Unfortunately, that's one more reason to wait to buy. Good luck.

The phase in is state law that limits the increase in assessments to 10% a year for owner occupied primary residences and has been in place for decades. Long time owners are way behind the curve in assessed/market value, to their benefit. It does not apply to rentals or vacation properties. Property in MD is reassessed every three years so folks will be stuck with a higher assessment for at least that long. If there is a major drop in assessment in the next go round it will be reflected then.
An example on assessments: if you would buy my house, which I've been in for over twenty years, you would see the assessable base is fairly low (10% cap remember) but the market value is much higher. You would pay taxes on the market value-about double what I pay.


My opinion: if a person has to have a 3rd, or even a 2nd, job to pay their property taxes they bought too damn much house.

[wakeful dreamer]

Wow. I just paid my property taxes for the year and it was $256. I guess I better plan to sock away $500 a month for the tax bill from now on. Yuck.

[North Beach Person]

Originally Posted by wakeful dreamer

Wow. I just paid my property taxes for the year and it was $256. I guess I better plan to sock away $500 a month for the tax bill from now on. Yuck.

Depending on your mortgage the taxes may be escrowed (tax bill/12 x 14) along with your homeowner's insurance. If you close in, say January, you will pay the balance of the tax bill until June 30. New tax year starts July 1, tax bills are received about Sept. 5. due Oct. 31. Most counties allow you to break the payment up, first by Oct. 31, second installment due Dec.31. They do charge a service charge for this, about $25. Don't know where you're from but here the county collects for the county services and the school system. As I mentioned previously, if you live in an incorporated municipality you will have a bit higher taxes and may get a separate bill. Where I live the Town has the County handle the mailings and collection for property taxes. Sales tax in MD is 6% and covers almost everything, including clothes, except most groceries. Car title transfer is 6% of Blue Book and car will have to be MD inspected. Depending on where you live you will need an air pollution inspection every two years.

[trying2moveup]

Originally Posted by wakeful dreamer

Wow. I just paid my property taxes for the year and it was $256. I guess I better plan to sock away $500 a month for the tax bill from now on. Yuck.

$256 - FOR THE YEAR??

Wow, you are in for a shock. Columbia is a great area, but even the crappy areas around here have property taxes way in excess of $256 a year.

Did you mean $256 a month?

My mother-in-law lives on a farm in Texas outside San Antonio and pays $800 for the year but I expect that since she is in the middle of freakin' NOWHERE.

As others have mentioned, you get various services depending on the area and incorporated municipality you are in (if you are in one). Your taxes will eventually go down if your assessment does but also remember that taxes pay for school construction and support and road/infrastructure developments. They will never go down so much to the point that there is no tax base -- then taxes will have to be raised in other areas. And since Maryland is tax-crazy, there is always a way to find something to tax.

[dad2paisley]

Maryland is the 3rd highest taxed state and we are taxed more and more all the time. Our new tax flush taxed went up to $5 a month.
My property taxes have gone up every year even though the value of my home has gone down. The value of my home has gone down, you think the property tax would, nope.
More taxes are coming. .15 gas tax, and others.
Good luck.