Is there a cap on real estate taxes? (sales, houses)

[beckycat]

Is there a set limit that your taxes can go up each year? Or, does it just go by estimated value? In FL, we have a cap of 3%. Therfore, the taxes can't go up more thatn 3%.

[MikeJaquish]

Originally Posted by beckycat

Is there a set limit that your taxes can go up each year? Or, does it just go by estimated value? In FL, we have a cap of 3%. Therfore, the taxes can't go up more thatn 3%.

No cap.
But, there is a political risk for the folks who raise taxes if the voters get disgruntled with the amount of taxes.

[beckycat]

That's kind of scary. I know that you didn't have the big housing boom where houses skyrocketed though. What's the typical amount taxes go up? Do they go up every year? The one thing though is that everyones taxes in particular SD are similar. In FL, that's not the case. I pay $1900 and my neighbor pays $750.Go figure!

[MikeJaquish]

Originally Posted by beckycat

That's kind of scary. I know that you didn't have the big housing boom where houses skyrocketed though. What's the typical amount taxes go up? Do they go up every year?

They tend to go up every year just a little.

It is the reassessment adjustment every 8 years that pinches, though.

[rnc2mbfl]

Originally Posted by beckycat

Is there a set limit that your taxes can go up each year? Or, does it just go by estimated value? In FL, we have a cap of 3%. Therfore, the taxes can't go up more thatn 3%.

I own homes in both FL and NC. The tax systems are very different. Counties in NC reassess home values every 8 years (or is it 7?). When that occurs, the counties and municipalities re-set the millage to be neutral to the previous year with any year over year adjustments set by the individual communities. That said, depending on whether your home appreciates faster or slower than the market will also determine what happens with your taxes. In the filler years between reassessing, expect years when the millage and your taxes increase, others where it remains the same and yet others where the millage might go down. It all depends on the previous year's spend by the local governments and the projected year's budget and revenue stream.
I don't recall any years where there were massive increases in taxes like non-homesteaded FL homeowners have faced in the last several years.

In the end, NC's tax system is much more reliant on income tax while FL's is more dependent on property tax, sales tax and taxes levied on tourists. While some people may moan and groan on this site about taxes, it's NOTHING like FL where non-homesteaded property owners saw thousands of dollar increases in their property taxes year over year when home values where skyrocketing.