So, I bought this little Honda Accord...

[BillyP]

...from my neighbor. It has about 330,000 miles and runs like a top. It's also very nice inside and out, but she thought it had a blown headgasket. I found a pinhole leak in the heater hose and fixed it for her, but alas, she had lost confidence in the car and wanted to get rid of it.

So, I offer her $1500 for it. She is excited and so am I because it's a great little commuter car that gets nearly 30 mpg. It will be much cheaper transportation than my 3/4 ton Dodge Cummins Diesel.

I have all the documents needed to transfer title in Texas. So, yesterday morning I gave my wife $150 and ask her to stop by the tax office. Texas has a 6.5% sales tax on vehicles, so that is about $93.75, right? WRONG!

When my wife went in, they said that 80% of the book value of the car was $2200 and the sales tax would be $137.50. It does not matter that I have proof that I paid $1500 or even that the car is running. The tax is now assessed on the book value rather than the actual cost. I somehow missed the change in the law. I don't like it. They say this will keep people from claiming they paid very little for a car to avoid taxes. I say it will make a lot of people not file for a new title at all. You don't need a title to register or insure a car in Texas.

What do you think? I know the reasoning (or lack of it) that this will make more money for the state. Do you agree, or do you think more people will just avoid the title transfer?

I don't want this to be a political discussion. It's just a "them against us" issue in my opinion that targets honest folks in the middle class who try to do things right. Okay...rant over.

You Texans don't have a state income tax or sales tax on groceries so consider yourself lucky

 

[fishman]

Jim, I agree, that's a lousy way for the state to do business. I guess I was lucky or the price I paid for a '99 Sub a few weeks ago was within 80% as posted by Bird. I just paid tax on the amount I bought the truck for.

Hey BillyP, you should check out my property tax bill sometime If they don't get you that way, they'll get you this way . . . or something like that.

 

[BillyP]

Hey BillyP, you should check out my property tax bill sometime If they don't get you that way, they'll get you this way . . . or something like that.

Fishman, I was wondering if anyone would pick up on that. Congrats to you! If they don't get you in taxes, they'll get you in fees. Call it what they want, it's the same thing. If it didn't cost so much, it'd be almost comical

 

[txdon]

BillyP, they get us other places:
The Texas Governor's task force reported today that Texas has the nation's ninth-highest property taxes as a percentage of personal income and property taxes have increased 233 percent in less than 20 years, even though inflation growth was much lower.
The property taxes still can and do increase 10% (the cap) per year.

 

[jinman]

Hey BillyP, you should check out my property tax bill sometime If they don't get you that way, they'll get you this way . . . or something like that.

That property tax issue is sure a sensitive one as we approach the end of January. I have one 11 acre tract that has no improvements, no fence, no nuthin'. The county and school taxes on that bare ground add up to about $750 per year. I think that stinks.

And while I am on the subject of taxes, did anyone else get separate tax bills for county and school taxes this year? I got one bill from the tax assessor-collector for county taxes and then a separate bill from the county appraisal district for school taxes on each property. That's 8 separate statements on four properties. Then, my wife got four statements on her two properties. It feels like they are "nickel-diming" us to death.

My mortage company was all set to adjust my escrow balance until I sent them the second bill. It seems the appraisal district didn't bother to find the mortgage company addresses. They just put a note in small type that said the property owner should forward the statement to their mortgage company. I wonder how many people will not read that and end up with a big fat tax penalty because they didn't know about this?

Anyhow, venting won't do much, but it makes me feel better I guess. I'll just have to get used to having another tax bureaucracy to pay for and deal with on an annual basis. At least that's the direction it looks like we are going. Both of these places have built nice new buildings in the last couple of years and I guess they have to do something to pay for them.

 

[hazmat]

I have one 11 acre tract that has no improvements, no fence, no nuthin'. The county and school taxes on that bare ground add up to about $750 per year. I think that stinks.


Ha - that's nothin' I have a 1/2 acre lot most of which is wetlands - unbuildable, unfarmable etc. Assesed at > $30,000, tax bill - $450 I guess if buildable lots are going for ~$300,000 that means this little peice of property must be worth something

For my 2,300 sq foot house & 3.5 acres, I pay $6,000 in property taxes (includes schools up here)

 

[dfeck]

After reading about property taxes I can't help but to laugh! A few years ago my wife and I purchased a 12A parcel in western NY (Rochester area + NOT building aproved yet) for ~$50K. Nothing on the land but a bunch of corn stalks. Since I wasn't planning on farming it I had to pay full tax rates. Well, that little parcel cost me ~$1500/yr in property/school tax. I won't get into the farm exemption that was being used for years on that parcel and how I had to pay for previous years tax savings!!

We've sold it since and bought a house in the same area. We currently pay $11,800/yr in property/school tax on a house assessed for $385,000. I grew up in the area and both myself and wife have good jobs so I'm not in a hurry to move. On the other hand, if one of us lost our job we might consider moving. Taxes are forcing many people/business' out of New York State!!

New York State is completely out of control regarding taxes. I recently bought a used car and had to pay the $50 as mentioned above for a new title. Total pay out at the DMV was $125 for title, new plates and registration. Tax was paid at the dealership.

Don't get me started about paying tax on a car every time it changes hands. I feel this act is criminal!!!! You should only have to pay tax ONCE on a car!! If they want to continue then re-imberse the previous owner. They can use some type of proration formula!!

 

[mikim]

Taxes go up each year -- but even if our property is paid off, will our retirement pay keep pace? It's got me worried. Of course the year we are 64 yrs old, they'll probably make our school taxes really jump 'cause after that they're limited. Can't remember what part of it is frozen at age 65 ...just remember that there is some relief from increasing school taxes at that point. I'll just have the 20 acres then -- will be selling everything else off to pay for building a house, but even then I'm keeping all improvements on the north 10 so if I have to in the future I can sell the south 10 to survive. Sometimes these "golden years" coming up look a bit tarnished.

 

[dfeck]

Funny story;

My wife and I bought a house (as mentioned above) for 385K in spring on 2005. We happened to buy in a year the town was reassessing properties (they do this every 3 years). The original assessment was 345K and we get the new assessment in the mail for 415K. Yes, that's a 70K adjustment after 3 months of ownership in a city that has seen many hard times in recent years.

I call up the assessor and he says you need to come in and show proof of what I paid. I met with him and the first thing I say; "If the town thinks the house is worth 415K then I'll sell it to the town for a steal at 410K”. I was willing to sell and make a 25K profit in 3 months, who wouldn’t! He did reluctantly lower it to our purchase price of 385K. But I had to show him our purchase offer showing what we paid. I bet it will go up next time to the 415K that he originally assessed it for. Which will be very difficult to prove.

 

[scott_vt]

That property tax issue is sure a sensitive one as we approach the end of January. I have one 11 acre tract that has no improvements, no fence, no nuthin'. The county and school taxes on that bare ground add up to about $750 per year. I think that stinks.

Mornin Jim,
You dont want to go there Ask the guys in the NE whats going on with taxes My Vt property, 10 acres, one small 900 sq ft home and a shed $2000 per year ! My Ct home, 1 acre 2000 sq ft approx $6600 per year Being a volunteer fireman in Ct gets me down to $5600 if I make the required points, you bet I make them

Like I said, like Hazmat said, dont go there