Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The guy next door gets the same schools and services you do at 1/10th the price. So you are overpaying by a large factor so he can get the same stuff cheap.
You're not overpaying. You're paying a tax based on a current value which is set by the purchase price.
If you would of bought a house in 2009 for 250,000 you would be paying one price. Your neighbor buys in 2016 the house next door for 500,000 you're gonna be really happy you got all that intangible equity but I guarantee you would be ****ting kittens when you got reassessed for $500,000 when you paid 250,000. And if you say you wouldn't be upset you're full of it. Because that's what you seem to be crying about when you say it's "unfair"
I just bought a new house. My property tax literally doubled compared to my old house. Actually it's a bit more than double . But I'm not the one whining about it. Because I understand my taxes pay for infrastructure.
There aren't many houses that people lived in for 30 years so they don't benefit from that low property tax, Prop 13 is great. Like I said before you buy a house now, go on CD in 20 years and someone is going to whine about how YOU'RE not paying your fair share.
Last edited by Electrician4you; 11-17-2016 at 06:27 PM..
You're not overpaying. You're paying a tax based on a current value which is set by the purchase price.
If you would of bought a house in 2009 for 250,000 you would be paying one price. Your neighbor buys in 2016 the house next door for 500,000 you're gonna be really happy you got all that intangible equity but I guarantee you would be ****ting kittens when you got reassessed for $500,000 when you paid 250,000. And if you say you wouldn't be upset you're full of it. Because that's what you seem to be whining about
And I agree. Perhaps the worst thing about Prop 13 is that it is very, very difficult to undo. LA Times this morning suggest though it may be coming...at least for commercial property. Target year of 2020. Big vote year with no Governor's race.
I would think it would better be modified so homes could move to real market parity in some reasonable time frame. If left alone I would expect the CA housing market to get weirder and weirder.
Your property taxes will go up 2% per year from now on.
The assessed value can go up, but might not. The property tax will not increase by 2% a year.
We bought in 2010 and our assessed value was the price we paid. In 2012 it dropped a bit based on what homes had done in 2011. Our property tax declined a little.
In 2014 prices had increased a lot and the assessed value was brought back up to our original purchase price value plus 2%.
For an example.
2010 purchase price: $300,000 x 1% = $3,000 (This is also the baseline value of our home)
2012 Assessed value change: $296,000 x 1% = $2,960.
2014 Assessed value change: $306,000 x 1% = $3,060. (Assessed value increased to baseline + 2%)
2016 Assessed value change: $312,120 x 1% = $3,121.20 (Assessed value increased 2%)
I am limiting this to 1% although in Oxnard where I live it is about 1.28% because of voter approved additional assessments. Your city or county may be different.
Funny how the new accessed value 100% matches my purchased value. I guess the city went with the Seller's Accessed value of the home.
Oh, According to Zillow, the "Market value" was 1 million. lol. Lucky the city doesn't use Zillow.
If your read Prop 13 it is based on Fair Market Value at time of Transfer...
NOWHERE does it mention purchase and the Assessor has tried several times disregard my purchase price... the last time I even got a reduction from the recorded sales price since my purchase included personal property such as applicances and some mechanics tools.
If it is as you say I could simply play with the numbers and sell my brother a property for half price and that would be his purchase... there is a reason it doesn't work this way.
The guy next door gets the same schools and services you do at 1/10th the price. So you are overpaying by a large factor so he can get the same stuff cheap.
I will play along... so the guy next door has been paying for decades for the same infrastructure I get by simply buying.
I'm sure your "Overpaying" will be looked at the same after 30 years...
Hey, the guy I bought my home was paying 1200 and the day I bought it went to 8800... I fully intend to be the one in 40 years with the low taxes too.
The wonderful thing about Prop 13 is it adds a little predictability... so you can buy and NO you can't be taxed out of your home without at least voter approval.
And I agree. Perhaps the worst thing about Prop 13 is that it is very, very difficult to undo. LA Times this morning suggest though it may be coming...at least for commercial property. Target year of 2020. Big vote year with no Governor's race.
I would think it would better be modified so homes could move to real market parity in some reasonable time frame. If left alone I would expect the CA housing market to get weirder and weirder.
Thank god it's difficult to undo. You should be thankful too. If you think your taxes are bad now wait till some ditrtbag slimeball asessor decides your 350,000 dollar house needs to be assessed for 650,000. Hope you enjoy a tax bill that just doubled in one year and DOUBLED again the next year,. You think you're being priced out of the market? Wait till you gotta sell because your tax bill went from 15-2000-3200 to 6400-8600-12,000. You'll build a whole new house because you're gonna **** enough bricks to do it.
Why do houses need to "move to real market parity"? What exactly is your thinking on this? Is it simply because YOURE paying higher property taxes than your neighbor who has lived there for 20 years? Dude in 20 years your property tax will be a bargain. To me it seems the current system of reassessing upon sale price is reasonable. There are not many who are keeping houses forever. In my old neighborhood 80% of the houses have sold in the last 10 years. Most of my neighbors were strangers. I know that most houses know in the neighborhoods I have rentals and work in have turned over a few times. Why the HELL should a person pay property taxes because some douchebag government employee tells him his house is now "worth" xx amount and he needs to pay more taxes. When he bought a long time ago. He's not selling the house. Getting rid of Prop 13 just gives this state another tax renenue stream and in the end it will do nothing more than fund these absurd retirements. Because we all know how frugal the State of California is it's tax money.
Last edited by Electrician4you; 11-18-2016 at 10:52 PM..
I've lived in a State without a Prop 13 and it was devasting...
Had a job transfer to Washington and bought a home to settle in... all the normal things... went home shopping and made a deal on a property that had been on the market a awhile.
Just so happened the price I paid was exactly the assessed price... so no surprises.
18 months later the Assessor sends a notice my property is now valued 80% higher than I paid... tax went from $6800 to $12,000 and I was sure it was a mistake!
Assessor based the new value on a parcel that sold nearby to a land speculator with plans of subdividing without regard to wetland and wetland setbacks... no question he paid the price which locals were in disbelief...
Anyway... it all came crashing down in 2009 and the guy stops paying taxes while trying to sell... no buyers...
If Washington's voter approved I-747 had not been struck down I and my neighbors would have had some protection from the actions of this crazy land speculator...
I'm thankful each and every day the voters that came before me in California had the courage to Make Prop 13 law and the US Supreme Court upheld it....
You're not overpaying. You're paying a tax based on a current value which is set by the purchase price.
Exactly they are not overpaying anymore than the person who paid less for their home is underpaying.
It's like a tenant who has rent control and has lived in the apartment form the 70's and are only paying $500 a month, their neighbor paying $1200 isn't overpaying they are paying current market rate.
So I just received a Property Tax Bill and it was very low. It was based on the previous purchase price of 250k. I was very happy until a week later, I received a 'Notice of Supplemental Assessment'.
The new Taxable Value is exactly what I paid for the Property.
Property Tax Bill is now tripled what it was originally.
I'm probably actually losing money considering all the costs.
Yep. Im always amazed when I hear a broker quote a potential buyer the property tax. Is not going to be the same for the new buyer!!!!
surprised that there never was a re-assessment done on a house that was taxed based on a purchase price of years back.
Everyplace else does.
Thanks to Howard Jarvis, not in California. Prop 13 artificially holds property tax down to what you paid for it, and a nominal rate increase yearly. This allows seniors to not get taxed out of their homes.
This is clearly a double edged sword.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
