Property Tax Question (Tampa: sale, real estate, foreclosures)

[sammbriggs]

I'm looking at a piece of real estate in Hillsborough County. Being that I'm a first time buyer I'm not that clued up on real estate taxes. The place I'm looking at was appraised at around $550k. The neighbors place was apraised at around $220k. What is puzzling me is that the place I'd be purchasing has an annual tax bill of around $12000 and the neighbor is sitting pretty with an $800 yearly bill. My realtors answers don't quite help me to sleep at night. Anyone care to explain to me how the system works because I can't quite grasp how they arrive at these numbers?

[TampaKaren]

Your Realtor should and probably does know this. But in general, real estate taxes are based on the last selling price, less any exemptions, times a millage rate. Each county has this detailed on their website. Do a net search on _____ county property appraiser for more details. Most property appraiser websites will also have a calculator to estimate taxes for a particular property.

[housingcrashsurvivor]

Could be the tax on the house you're considering was based upon, as TampaKaren suggests, the last sale which--I don't know your property, of course, but--might have been a peak flip. If this is currently a foreclosure, then check especially with the county to see if they will count the new sale price as the new appraisal because only some counties consider foreclosures as qualifying sales.

The big difference between the house you are looking at and its neighbor is probably due to the "save our home" value, which restricts increases in appraisal values upon which taxes are based to a max of 3% per year. So if that homeowner lived in the house from way before the bubble, or ported tax savings with them from another Florida residence, then the taxes paid on neighboring homes will look askew, even after considering appraised values. As to that, it might look like you're getting ripped off but you'll benefit similarly the longer you hold onto Florida property, assuming status quo property tax-wise.

$12k on $550 sounds a bit high; my guess is that's without homestead thus no deductions. So besides figuring out upon what appraisal the county will tax and what your mill rate is, you should also be aware of what other assessments are being charged ontop of county taxes.

As to being a first time home buyer looking at properties valued over 1/2 million, wow, good for you. Good luck and welcome to Tampa home ownership.

[Pookie]

Originally Posted by sammbriggs

I'm looking at a piece of real estate in Hillsborough County. Being that I'm a first time buyer I'm not that clued up on real estate taxes. The place I'm looking at was appraised at around $550k. The neighbors place was apraised at around $220k. What is puzzling me is that the place I'd be purchasing has an annual tax bill of around $12000 and the neighbor is sitting pretty with an $800 yearly bill. My realtors answers don't quite help me to sleep at night. Anyone care to explain to me how the system works because I can't quite grasp how they arrive at these numbers?

There is a 3% cap...meaning that your taxes cannot go up more than 3% per year. The neighbors have probably been in their house for many years...and purchased their home at a much lower price way back when. So even though the market price has gone up, the tax they pay on it cannot increase more than 3% per year.

[bentlebee]

Originally Posted by sammbriggs

I'm looking at a piece of real estate in Hillsborough County. Being that I'm a first time buyer I'm not that clued up on real estate taxes. The place I'm looking at was appraised at around $550k. The neighbors place was apraised at around $220k. What is puzzling me is that the place I'd be purchasing has an annual tax bill of around $12000 and the neighbor is sitting pretty with an $800 yearly bill. My realtors answers don't quite help me to sleep at night. Anyone care to explain to me how the system works because I can't quite grasp how they arrive at these numbers?

Look on the property appraisers website of Hillsborough County and check for the address your interested in...you can find all the data you need to know...even if the present owner has paid the property taxes or not and how much the property taxes are now and last year.

[mickeyfinn]

When a house sells in Hillsborough County, it's value is re-appraised by the assessor's office.

DO NOT base what you think you will pay for property taxes on what the current owners paid for the last tax year.

Once you buy a home the property tax can only go up a maximum of 3% per year.

If someone has lived in a home for 15 years, even though the home's worth may have increased substantially, the property taxes will not reflect this due to the 3% per year maximum increase.

But once a house changes hands, the new buyer is often shocked by the increase in property taxes compared to what the previous owner paid.

When a house sells in Hillsborough, the assessor sends an appraiser out to do a fresh assessment and the property tax can go through the roof.

Be careful.

[mickeyfinn]

Originally Posted by Pookie

There is a 3% cap...meaning that your taxes cannot go up more than 3% per year. The neighbors have probably been in their house for many years...and purchased their home at a much lower price way back when. So even though the market price has gone up, the tax they pay on it cannot increase more than 3% per year.

But when a house changes hands, it's value is reassessed and the property tax can skyrocket on the new owner!

[bentlebee]

Originally Posted by mickeyfinn

When a house sells in Hillsborough County, it's value is re-appraised by the assessor's office.

DO NOT base what you think you will pay for property taxes on what the current owners paid for the last tax year.

Once you buy a home the property tax can only go up a maximum of 3% per year.

If someone has lived in a home for 15 years, even though the home's worth may have increased substantially, the property taxes will not reflect this due to the 3% per year maximum increase.

But once a house changes hands, the new buyer is often shocked by the increase in property taxes compared to what the previous owner paid.

When a house sells in Hillsborough, the assessor sends an appraiser out to do a fresh assessment and the property tax can go through the roof.

Be careful.

Only true if the person has "homestead"! You can only get it for a primary home...if it is your second home you ca't get it, or if you don't have a GC and if you are a felon you aren't allowed to get it either!

[TampaKaren]

Originally Posted by mickeyfinn

...

When a house sells in Hillsborough, the assessor sends an appraiser out to do a fresh assessment and the property tax can go through the roof.

The assessor does not send an appraiser to do a fresh assessment after a sale. This is a false statement. Call the county and ask them if you don't believe me.

[kamorra2]

There's been a lot of bad information on this board lately. If you don't know what you're talking about, please don't send people down the wrong track.