Property Taxes

[NorTracNY]

I'm still baffled by people talking about paying hundreds of $$ in property taxes. I pay about 3.8% of my assessed value each year in property taxes!

 

[brin]

I'm still baffled by people talking about paying hundreds of $$ in property taxes. I pay about 3.8% of my assessed value each year in property taxes!

That is horrible...!!!! 3.8% Wow ! By the way I am complaining about paying thousands as well....not hundreds...

 

[Bird]

Renters get off pretty much scott free

You're kidding, right? You may not think you can raise the rent high enough to suit you, but those property taxes are definitely included in the rent charged. And the renter doesn't even get to deduct that expense on his income tax return, as the owner does. The owner is indisputably ahead of the renter. If he wasn't, he'd get rid of that rental property.:laughing:

But as to whether a larger sales tax would be more fair than the property tax . . . I really can't say. You might be right.

 

[MossRoad]

What do you fellas think about just adding about 2 % to the sales tax in each of our cities and counties and do away with property taxes all together..It seems to me that travelers, visitors and renters should all share in the services our taxes pay for. As a rental property owner I can say that I have never been able to raise my rents enough to off set property tax increases...so as far as I can see Renters get off pretty much scott free..free educations, free services..etc and so do those commuting to work in our communities...To me a sales tax specifically to replace property taxes makes more sense and then those of us that own property actually will truly own it.. I have long said as long as you have to pay property taxes you are really just renting your property from the government since the first time you don't pay your taxes the Sheriff will be out to take your property from you...True ownership comes when it is truly yours free and clear.

Thoughts?

I would be in favor of both a flat federal income tax with no cap and a flat state income tax with no limit. But I would like to see the elimination of local option income taxes and special city taxes. For example:

My wife and I frequent the local McDonald's drive through for lunch several times a week. We get our food and sit by the river and watch the submarine races. :laughing: Anyhow, it was too cold to sit by the river one day, so we went inside to eat. Nice digs. Clean, etc... I order the food and the counter person says dine in or carry out? I say dine in. We get the food and I comment to my wife that the meal cost more than usual. I look at the receipt and there is a dining room tax of 40 something cents! Apparently restaurants in certain areas of our town have to impose it and some do not. I have to find out why. Something to do with tourism, TIF districts, etc... pretty stupid law that you don't get taxed at the drive through for the same food. :confused2:

 

[brin]

You're kidding, right? You may not think you can raise the rent high enough to suit you, but those property taxes are definitely included in the rent charged. And the renter doesn't even get to deduct that expense on his income tax return, as the owner does. The owner is indisputably ahead of the renter. If he wasn't, he'd get rid of that rental property.:laughing:

But as to whether a larger sales tax would be more fair than the property tax . . . I really can't say. You might be right.

Bird....NO --ABSOLUTELY NOT KIDDING AT ALL ! I have owned rental property for 30 some years now and I am here to tell you that if you are in a competitive rental market there is just no way you can keep tenants and continue to raise the monthly rate to keep pace with the rising property taxes..Believe it or Not !

 

[MossRoad]

I'm still baffled by people talking about paying hundreds of $$ in property taxes. I pay about 3.8% of my assessed value each year in property taxes!

Here in South Bend, IN if your house is not appraised that much, you do not pay that much.

Then there is the homestead exemption which knocks off some of the appraised value before taxes.

Then there is the mortgage exemption, which knocks off more.

For example, we have a low interest home equity loan against our house. It is considered a mortgage. We save quit a bit of money each year in property taxes because we have a mortgage that qualifies for the mortgage exemption. The most interest we have ever paid on the loan in a year was about $200. So we save quite a bit of money a year by having a mortgage. :confused2:

 

[MossRoad]

I should add that the system sucks, but it is the system we have, so you have to work the system in your favor. Sounds sleazy, doesn't it? :drool:

 

[Bird]

Here in South Bend, IN if your house is not appraised that much, you do not pay that much.

Then there is the homestead exemption which knocks off some of the appraised value before taxes.

Then there is the mortgage exemption, which knocks off more.

For example, we have a low interest home equity loan against our house. It is considered a mortgage. We save quit a bit of money each year in property taxes because we have a mortgage that qualifies for the mortgage exemption. The most interest we have ever paid on the loan in a year was about $200. So we save quite a bit of money a year by having a mortgage. :confused2:

Of course we have the homestead exemption, but I never heard of a mortgage exemption, so I don't know what that is. I can remember the days when almost any "interest" paid on any loan, credit card, etc. was tax deductible, but not for many years now. We, too, have a mortgage, so that interest is tax deductible, if that's what you're talking about.

 

[Bird]

I would like to see the elimination of local option income taxes and special city taxes.

Those are not taxes; those are user fees.:laughing: That way, the politicians can say they didn't raise taxes.:laughing:

 

[dooleysm]

No, Indiana has a separate mortgage exemption. It's not alot, something like $3000, nothing like the homestead exemption, but it helps.

We just paid off our house with a HELOC (lowered our rate from 5.8% to 3.25%) and one of the first things the loan officer told us was to make sure we kept our mortgage exemption, as the HELOC counted for those purposes.