Retirement thoughts Past Present Future

[ultrarunner]

Washington State's Constitution limits the regular (non-voted) combined property tax rate that applies to an individual's property to 1% of market value ($10 per $1,000). Voter approved special levies, such as special levies for schools, are in addition to this amount. And you can bet they adjust your "market" value as fast as they can each and every year, with physical inspections every 6 years.

I was told by Thurston County Assessor that the 80% increase from what I paid for the place 18 months prior was proper…

I did a thread about it and questioning how many 80% year over year is sustainable… especially looking at a viable retirement strategy.

 

[Gale Hawkins]

I was told by Thurston County Assessor that the 80% increase from what I paid for the place 18 months prior was proper…

I did a thread about it and questioning how many 80% year over year is sustainable… especially looking at a viable retirement strategy.

Maybe they thought you ripped off the seller.

 

[ultrarunner]

Not likely… property had been on the market 180 days and it was the week before Christmas…

My offer matched the assessors value set the prior year…

When I nearly fell out of my chair and called the reason given was a rather large parcel near me had sold for an unbelievably high price to someone from California with plans of subdividing and making a fortune so everyone in the area received a huge boost.

Locals knew wetland restriction rendered maybe a single homesite and not the 10-12 contemplated but the damage was done.

Anyway, 2008 happened and the owner basically made a deal so ownership transferred to the land trust…

This experience really made me appreciate California Prop 13 and voter approval required for tax increases over 2% because in Washington a fool with money to loose can really screw up the the assessment rolls for everyone… even more so for fixed income retired unless qualifying for low income, etc.

 

[two_bit_score]

the reason given was a rather large parcel near me had sold for an unbelievably high price to someone from California with plans of subdividing and making a fortune so everyone in the area received a huge boost.

They were just looking for a way to stick it to people.

One speculative sale on a larger parcel than yours doesn’t represent a “uniform and equal” representation of value.

Something like that would be challenged immediately here and would not likely be upheld.

 

[Gale Hawkins]

Not likely… property had been on the market 180 days and it was the week before Christmas…

My offer matched the assessors value set the prior year…

When I nearly fell out of my chair and called the reason given was a rather large parcel near me had sold for an unbelievably high price to someone from California with plans of subdividing and making a fortune so everyone in the area received a huge boost.

Locals knew wetland restriction rendered maybe a single homesite and not the 10-12 contemplated but the damage was done.

Anyway, 2008 happened and the owner basically made a deal so ownership transferred to the land trust…

This experience really made me appreciate California Prop 13 and voter approval required for tax increases over 2% because in Washington a fool with money to loose can really screw up the the assessment rolls for everyone… even more so for fixed income retired unless qualifying for low income, etc.

We have that happen around here also. Yes, any excuse to increase will work.

 

[ultrarunner]

I have 17 acres and the nearby comp 20 acres…

My land value was relatively modest due to wetland restrictions as my neighbors but the high priced paid for similar land boosted everyone.

In later years the land value has declined but improvement way up and reasoning now is building is quite restrictive making existing much more valuable.

Spending year after year appealing assessed value hardly seems the way I want to spend retirement…

I’m now just under 20k and I started at 6k with no improvements and it’s a definite concern for my golden years… especially if it doubled to 40k!!!

 

[milkman636]

……….I’m now just under 20k and I started at 6k with no improvements and it’s a definite concern for my golden years… especially if it doubled to 40k!!!

Ouch! 20k is about $55 a day to the government just to maintain ownership of your own land. Yikes!

 

[Larry Caldwell]

Not likely… property had been on the market 180 days and it was the week before Christmas…

My offer matched the assessors value set the prior year…

When I nearly fell out of my chair and called the reason given was a rather large parcel near me had sold for an unbelievably high price to someone from California with plans of subdividing and making a fortune so everyone in the area received a huge boost.

Locals knew wetland restriction rendered maybe a single homesite and not the 10-12 contemplated but the damage was done.

Anyway, 2008 happened and the owner basically made a deal so ownership transferred to the land trust…

This experience really made me appreciate California Prop 13 and voter approval required for tax increases over 2% because in Washington a fool with money to loose can really screw up the the assessment rolls for everyone… even more so for fixed income retired unless qualifying for low income, etc.

Do you not have an Equalization Board that hears excessive assessment complaints?

 

[ultrarunner]

Do you not have an Equalization Board that hears excessive assessment complaints?

In California I never lost a case.

In Washington the assessor forwarded all the info on the comp and said it is what it is.

Almost seems like arbitrage if you have enough money…

Pay a over the top price and trigger high assessments for all your neighbors.

In California I bought my 1957 1700 square feet home for 600k. Assessor made several unannounced visits looking for improvements and there were none… all 1957.

On the lot next door a 3400 square foot home was built and sold in 2007 for 1.3m

In 2010 is sold bank foreclosure for 600k… my taxes are higher to this day for my old house of half the size because at the time the newer house was sold it went for 600k and I had 8 years of 2% annual increases…

Had I been able the smart move would have been to buy the next door foreclosure and lock in a rock bottom assessed value.

In Washington I realize I may very well be priced out as taxes increase…

 

[goeduck]

I was told by Thurston County Assessor that the 80% increase from what I paid for the place 18 months prior was proper…

I did a thread about it and questioning how many 80% year over year is sustainable… especially looking at a viable retirement strategy.

In 2009 (I think) the assessed values went DOWN. Shocked the livin' carp out of everyone. Of course, that was after the housing bubble popped. Since then, it has been nothing but a ride to the moon for the tax collector.

In one of the cities that I own a rental the police staffing has not increased since 2007 yet the population has increased significantly, and the tax "revenue" has skyrocketed. Go figure.