| Author |
Message |
    
kathy
Citizen
Username: Kathy
Post Number: 1057
Registered: 5-2001
| | Posted on Tuesday, March 1, 2005 - 1:40 pm: | 
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Here I am down in Maryland, and thinking that they have a reasonable approach to property taxes. Every property is reassessed every three years, one-third of them each year. Then the new assessment is phased in over three years. So every property in the state is theoretically at about the same status at all times.
But here's the catch. Other places that I've lived (including NJ, of course) the assessments are totalled, the local budget is set, and then one is divided into the other to get the tax rate. So if everybody's assessment goes up, the tax rate goes down and your taxes could stay the same. Of course if some assessments go up more than others (practically guaranteed, if you only assess every 20 years or so) then some tax bills might go down while others go up.
But apparently that's not how it works down here. It seems that the tax rate is set at the state level. They get the new assessments, then multiply by the (fixed) rate to get their total budget.
For the 1/3 of properties that were reassessed this year, the average increase in assessed value over three years ago is 70%. This means that (over three years) property taxes will go up 70%, unless the state is persuaded to lower the tax rate. Ha! Needless to say, school districts and local/county governments are already thinking of ways to spend this windfall.
And the final indignity: Our assessment seemed on the low side, so we were certainly not going to appeal it. But we just got a notice that our assessment is being appealed--by the county! They apparently think that it is not high enough. (Supposed to be full market value.)
It's enough to make me long for the good old days in Essex County.... |
mjc
Citizen
Username: Mjc
Post Number: 308
Registered: 10-2004
| | Posted on Tuesday, March 1, 2005 - 1:56 pm: |
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Ouch Kathy, sounds very bad!!
The ongoing reassessment thing makes sense, but not with a constant tax rate. When we were in MA, each town was required to reassess everyone's property every three years, but the total amount the town could raise through property tax was closely capped, unless there was a popular vote on it (may have had to be a 60% majority, too). It's the only place we've lived where the property tax system actually made sense. Certainly not CA (only reassessed on sale), NJ (apparently reassessed when they get around to it), or NY (reassessed property by property, if/when the person in charge notices the sale and is of the other political party...).
Hope everyone is well otherwise, and spring is advancing -
MC |
Michael K. Mc Kell
Citizen
Username: Greenerose
Post Number: 577
Registered: 9-2003
| | Posted on Tuesday, March 1, 2005 - 2:10 pm: |
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Sorry to hear... I complain @ $5,000.00 a year. |
Bob K
Supporter
Username: Bobk
Post Number: 7779
Registered: 5-2001
| | Posted on Tuesday, March 1, 2005 - 3:47 pm: |
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Kathy, I thought the maximum increase in assessment per year for tax purposes was 10% down in your neck of the woods.
See the attached link:
http://www.bankrate.com/brm/itax/edit/state/profiles/state_tax_Md.asp |
kathy
Citizen
Username: Kathy
Post Number: 1059
Registered: 5-2001
| | Posted on Wednesday, March 2, 2005 - 11:54 am: |
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Thanks, Bob, that makes me feel a little better even if I'm not sure exactly how it works. Also, our house didn't exist as a taxable entity a year ago, so until they settle on a current assessment I'm not sure that there is a meaningful cap. |
Bob K
Supporter
Username: Bobk
Post Number: 7788
Registered: 5-2001
| | Posted on Wednesday, March 2, 2005 - 12:11 pm: |
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Ugh! |
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