Prepaying taxes

[buckeyefarmer]

Reassessed every 3 yrs in MD.

 

[goeduck]

The reassess annually in my county based on comparable sales. They are not going to miss nailing you.

 

[PILOON]

Re assess every 3 years here also and that generally is based on recent similar sales so you know that taxes will only go one way, up.
Then they downgraded houses and upgraded land which in our case is waterfront.
Result is houses in the $300k+ range came down in tax while the poor guy with minimal or old summer shack went up and since the better off guys ($$) saved nobody complained.
Mine stayed about the same.

 

[KTurner]

This brings up the question, how often are properties re-assessed in different states?

In my county (southeast Virginia), re-assessments are done every two years and is supposed to represent fair market value. The tax rate is set annually when they set the budget in April. I've not dug into the innards of our budget but my understanding is that roads are state maintained (not in county budget) and the sheriff's department is mainly funded through state as well.

We received our 2018 re-assessment notices in the mail a few days ago. These notices show the past two years actual tax and next year proposed. Looking at one property - 2016 saw a 7% increase in tax bill, 2017 saw a 5.8% increase in tax bill and the proposed 2018 tax is a 6% increase in tax bill (assuming they don't change the tax rate in April). A month ago, I had an appraisal done on this property. The assessment is a full 20% higher than the appraisal. I will be calling them to dispute the assessment but will for the dust to settle a bit. The land, one acre, was assessed at $161,000 which accounts for $1,300 of the proposed 2018 property tax.

 

[ultrarunner]

This brings up the question, how often are properties re-assessed in different states? I have a friend who lives in Fla. and from what I understand, the price you paid for your property is what you're assessed on for as long as you own it. Good deal for someone like him who bought his house in 1975 for less than you'd pay for a decent car today...for someone buying a house today, not so much. I wonder if some here who pay fairly low property taxes do so because property is rarely, if ever re-assessed.
Here in N.H. it's the law that re-assessment must be done every 10 years or less. Like it or not, it makes things fairer where everyone's cost basis is similar.

In California the assessed price is Fair Market Value at the time of transfer... typiclally the sales price of an Arms Length transaction...

Also, annual inflation is capped at 2%

Important to note Voters can and do approve special assessments which can add a substantial amount to tax bills... but only with voter approval.

 

[MinnesotaEric]

Anyone prepaying their property taxes now for 2018? My accountant called and advised me to do so due to new tax law.

Estimated tax? Yep. Four times per year.

 

[MinnesotaEric]

In California the assessed price is Fair Market Value at the time of transfer... typiclally the sales price of an Arms Length transaction...

Also, annual inflation is capped at 2%

Important to note Voters can and do approve special assessments which can add a substantial amount to tax bills... but only with voter approval.

congresses new tax bill caps state tax deductions at 10% which will work to push higher income people out of high taxed states as well as to lower taxes and services in high taxed states.

 

[ultrarunner]

Wonder if that was one of the underlying factors... more well off older continue to leave.

Just lost another acquaintance... relocated to Utah... no connection but they enjoy skiing.

As often happens... whatever form it takes it seems the SF Bay Area will be a key indicator.

The local media continues with stories about high cost of housing here... this may temper housing cost but not overall cost... just a reshuffling of the Deck...

 

[teejk]

congresses new tax bill caps state tax deductions at 10% which will work to push higher income people out of high taxed states as well as to lower taxes and services in high taxed states.

Wealth flight will certainly result in curtailing services but lower taxes will be difficult since so much spending is now "non-discretionary" (retiree benefits for those states that don't fund their plans and debt service). We have a few states in that category now (NJ and Ill come to mind). I suspect we'll have to bail them out at some point.

 

[ovrszd]

Everyone should pay something!

And your refund should never exceed the amount you paid in.