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Old 08-20-2012, 09:25 PM
 
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Can anyone explain the millage taxes in Philly suburbs? The mill rates I've seen for towns in Delaware and Montgomery counties range from 20 to 45. On a $400k house, that's up to $18,000 a year in taxes alone.

In the Boston area, which is considered to have a high tax burden, the millage rate in swanky towns with top school districts is more like 11 to 14, or $4,400-$5,600 a year for a $400k house. I can understand some variation, but $14k a year is a huge amount of money, especially over time.

Are Philly area towns underassessed? Are people just used to the taxes? Even assuming lower property values in PA vs MA, taxes obviously continue long after a mortgage is paid off. Am I missing something important?
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Old 08-22-2012, 09:22 AM
 
Location: North by Northwest
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Quote:
Originally Posted by donewithpretty View Post
Can anyone explain the millage taxes in Philly suburbs? The mill rates I've seen for towns in Delaware and Montgomery counties range from 20 to 45. On a $400k house, that's up to $18,000 a year in taxes alone.

In the Boston area, which is considered to have a high tax burden, the millage rate in swanky towns with top school districts is more like 11 to 14, or $4,400-$5,600 a year for a $400k house. I can understand some variation, but $14k a year is a huge amount of money, especially over time.

Are Philly area towns underassessed? Are people just used to the taxes? Even assuming lower property values in PA vs MA, taxes obviously continue long after a mortgage is paid off. Am I missing something important?
Compared to states like Massachusetts, we're taxed much less in other areas--namely income tax (flat 3% rate).
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Old 08-22-2012, 09:45 AM
 
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The income tax rates would make up part of the difference -- MA has a 5.3% flat tax. On $200k salary, that works out to a $4,600 difference. Still need to figure out the other $9k to convince my husband to move.
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Old 08-22-2012, 10:41 AM
 
Location: Pennsylvania
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Many homes are underassessed.
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Old 08-22-2012, 10:49 AM
 
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Underassessment is what I'm hoping for. In DE, I know people with a million dollar house who are assessed around $200k. In contrast, assessments where I am tend to come close to market value, maybe $50k under.
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Old 08-22-2012, 11:25 AM
 
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Property taxes are highest in older places or places with lesser school districts. Property tax is how they pay for school districts around here so when Republicans continue to cut the state funding, the local municipalities have to make up the difference. Funny how the "no raised or new taxes" thing doesn't apply to forcing local municipalities to raise taxes on themselves huh
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Old 08-22-2012, 11:49 AM
 
Location: Pennsylvania
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Quote:
Originally Posted by donewithpretty View Post
Underassessment is what I'm hoping for. In DE, I know people with a million dollar house who are assessed around $200k. In contrast, assessments where I am tend to come close to market value, maybe $50k under.
My home is assessed at about 55% of its actual value. I don't know the last time the assessment was updated.
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Old 08-22-2012, 05:39 PM
 
1,677 posts, read 2,523,923 times
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Quote:
Originally Posted by donewithpretty View Post
Can anyone explain the millage taxes in Philly suburbs? The mill rates I've seen for towns in Delaware and Montgomery counties range from 20 to 45. On a $400k house, that's up to $18,000 a year in taxes alone.

In the Boston area, which is considered to have a high tax burden, the millage rate in swanky towns with top school districts is more like 11 to 14, or $4,400-$5,600 a year for a $400k house. I can understand some variation, but $14k a year is a huge amount of money, especially over time.

Are Philly area towns underassessed? Are people just used to the taxes? Even assuming lower property values in PA vs MA, taxes obviously continue long after a mortgage is paid off. Am I missing something important?
In Chester County, the last reassessment was done in 1996. So regardless of if the home was built in 1920, 1950, 1970 or 1996 the tax assessment is based on 100% of the value in 1996. So, if in 1996 a particular house was worth $100,000 and in 2012 its market value is $400,000 the millage rate is Millage x $100,000, not millage X $400,000. FYI, my particular school district millage in 2012 was 27.182. Chester County millage was 3.965.

I don't know how they determine the assessment value on homes built after 1996, however, it might make a good case to consider buying an older home based upon the date of the last re assessment for a particular county. Also, if you are moving to a county with a huge number of schools needed to meet the demands of a huge number of familes with children of school age - you have to expect the millage for school taxes to be much higher than school districts that are less populated - that is if you expect quality schools.

FYI, we also have something in PA called the homestead exclusion. If it is your primary residence, the base assessment can be reduced by approximately 6% to arrive at your net base assessment X the millage rate.

I think you are trying to compare apples to oranges. I.e. The same house you buy in Boston for $400,000 might be $300,000 in the Philly suburbs. The Boston area may need fewer schools based upon the number of families with children of school age in that area vs Philly Suburbs which is filled with families with school age children which = more schools needed.

Just comparing the millage rate in Boston vs Philly suburbs is usleless without taking in to consideration all the other variables.

Mary2014
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Old 08-23-2012, 11:58 AM
 
387 posts, read 911,492 times
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I think you are trying to compare apples to oranges. I.e. The same house you buy in Boston for $400,000 might be $300,000 in the Philly suburbs. The Boston area may need fewer schools based upon the number of families with children of school age in that area vs Philly Suburbs which is filled with families with school age children which = more schools needed.
I agree the property values are lower in the Philly area. To make up for the tax difference though, the Philly house would have to be $200,000 less, assuming a 30-year mortgage at 4%. Still, I consider money put into the value of a house to be a potential investment (though who really knows about that). In contrast, tax money is gone forever and you have to continue to pay that amount after you're finished with a mortgage.

The nice towns in the Boston area are filled with school-age children. The town of Newton, for example, has 15 elementary schools; Lexington has 6. Good schools don't really affect the millage rate much, only the house values.

Quote:
In Chester County, the last reassessment was done in 1996. So regardless of if the home was built in 1920, 1950, 1970 or 1996 the tax assessment is based on 100% of the value in 1996. So, if in 1996 a particular house was worth $100,000 and in 2012 its market value is $400,000 the millage rate is Millage x $100,000, not millage X $400,000.
I love older houses, so that may be the way to go. New construction is ridiculously priced anyway, at least up here.
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