Will 2008 bring some nasty surprises?

[cncsmomndad]

Prop 13 in CA is great for limiting the amount of property tax increase levied each year. My in-laws live in a house worth about $325k and pay about $400 a year in taxes on it. Once it is sold, the new taxes will be based on the sales price. They aren't thrilled about losing their low taxes by moving!

[Nacht]

Originally Posted by cncsmomndad

Prop 13 in CA is great for limiting the amount of property tax increase levied each year.

It is great for limiting the amount of property tax paid but it is terrible for State of California's budget.

[askmisterbrown]

The reassessment is intended to be revenue-neutral in Wake County. The tax rate is lowered to compensate for the increase in property values overall. But individual homeowners are likely to see either an increase or decrease in property tax. If you live in an area that has enjoyed greater appreciation than the county in general, you will pay more. If you live in an area that has enjoyed less appreciation than the county in general, you will pay less. Of course any changes to your particular property, such as additions or renovations, will also be taken into account.

So either way you'll get some good news and some bad news, because the more your property has appreciated, the more your taxes will increase, and vice versa.

[OmegaBaby]

Nobody is looking at the upside to this...

When reassessments are done, tax rates are adjusted downward so that the total tax revenue generated is the same. So if you just purchased your home in the past year or two, then your house appraisal is probably accurate, and you should see your tax bill decrease.

[gastric]

Property taxes going DOWN? I'd have to see it to believe it! Seriously.

[Lizardlips]

Originally Posted by cncsmomndad

Prop 13 in CA is great for limiting the amount of property tax increase levied each year. My in-laws live in a house worth about $325k and pay about $400 a year in taxes on it. Once it is sold, the new taxes will be based on the sales price. They aren't thrilled about losing their low taxes by moving!

That is true, but the catch with that is if you do anything to your property that takes a permit, they will then be able to go in and reaccess your property. We learned that the hard way, when we added a pool, they jumped on it quick. Went from a $150K tax bracket to a $500K tax bracket with a blink of an eye.

[mm34b]

Originally Posted by gastric

Property taxes going DOWN? I'd have to see it to believe it! Seriously.

Here's a list of the county property tax rates over a five year period. You can see the fluctuations for each county in NC.

http://www.dornc.com/publications/5yr_tax_rates.pdf

[mm34b]

Originally Posted by bunnyrider

Wow; I'm suprised NC reasseses only 8 years or so.

All counties must revalue real property at least every 8 years but may elect to revalue more frequently and some do. You can see how often the re-evaluation takes place in your county in the publication link I posted above. In my county, it's every 4 years.

[tigerlily]

Originally Posted by Nacht

It is great for limiting the amount of property tax paid but it is terrible for State of California's budget.

When our proposition passed in Oregon, it hurt the schools who were major recipients of real estate taxes.

[autumngal]

Originally Posted by tigerlily

When our proposition passed in Oregon, it hurt the schools who were major recipients of real estate taxes.

That stinks, shame that has to happen tigerlily