Re: 2010 worst year for home sales since 1997

My understanding from talking to friends at work who own places is
that the overall tax isn't affected by the assessments - so regardless
of those, a city might choose to raise taxes by 2% or whatever.
Rather, the assessment determines the amount you owe relative to other
property owners.

If your neighbourhood becomes more desirable relative to others in the
city, then you'll get a bigger increase.

On 1/20/11, Lance McLain <lance-X3DuywwxauBWk0Htik3J/[email protected]> wrote:
>
> On Jan 20, 2011, at 11:16 PM, Peter T. Chattaway wrote:
>
>> On Thu, 20 Jan 2011, Lance McLain wrote:
>>> Just curious, but how do your property taxes work there?  Is there
>>> an annual reassessment, are there increase caps?
>>
>> I have no idea what an "increase cap" is,
>
> In Maryland they had a maximum amount they could increase your tax
> bill (a cap) each year.  Usually between 2 and 5%.  Where I lived it
> was 5%.  This means if the value of your home went up 25%, you only
> had to pay the tax on 5% increase taxable value.  During the bubble
> years your home may have doubled in value but you were paying the
> property tax of a much smaller house.  But it had the unfortunate
> effect of when property values went back down, the taxes continued to
> go up because you were still getting 5% increases for the taxable
> value to reach the assessment value that had inflated over the years.
> So assessments may have went down 20% but you still got a 5% increase
> in your tax bill.
>
>> but yeah, we get property assessments every year, usually the first
>> week of January or thenabouts. For three years, we got *two*
>> assessments -- one for the apartment we live in, and one for the
>> apartment we were renting out -- but since we sold the latter
>> apartment last summer, we got just the one assessment this year.
>
> Wow...we got an assessment once every 3 years which was used for each
> year.  Unless the property changed ownership, at which case there was
> a new assessment and the caps lifted and the taxable value returned to
> 100% of assessed value.
>
> regards,
> -Lance
>
>
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