Re: Concern over a huge drop in city assessment value
Posted: Mon Feb 12, 2018 5:10 pm
I just skimmed over the drama of the previous owners and the issue of "short sale" which, I find, to be a non-issue. But will focus on your presenting question about the variation in taxes owed (which has little to nothing to do with the drama or short sale).
There's a big difference between Property Assessment and Tax Assessment but they can relate to each other. For example, a community can decide the criteria for Property Assessment and how often it is evaluated.
For example, I sold a house for a below-market price of $36,000 that was assessed at around $8,000. Obviously, the "fair market value", which could have been closer to $45-50,000, had little to no bearing on "assessed value". This is particularly true in older, stable to declining communities where there's no reason to change property assessments more than once every 25 yrs. or so.
It is much easier for a municipality to change the 'mil rate' (tax due per $1,000 of assessed value) than to have someone go out and evaluate each home for a new property assessment. Changing the mil rate tends not to have people grieve their taxes as would changing the assessed value. It's harder for property owners to dispute their "fare share" than a change in the assessed value of the home.
Reciever of Taxes: "No one is saying the value of your home changed. The Town needs more money to offset a drop in State and Federal funding and everyone is paying the same percentage more."
Getting back to my $36,000 home sale. A couple years before I sold it the tax bill nearly doubled! The previous owner had multiple reasons for being taxed at a lower rate than I (STAR, Veteran, etc.). But, if one were to look at (ie) the Zillow listing they'd wonder, "What in heck happened?".
Actually, the same might be asked about our current home...nearly condemed single family home, cut-up into three apts....and we nearly doubled its size (George Washington did the same thing to Mount Vernon).
In your Tax History chart, I don't see the mil rate, the portion that is School Tax vs Municipal Tax, or if something happened in or around the home that might have impacted its value (ie. installation of municipal sewer) or the valuation (successful lawsuit vs the City for biased assessments). Sites, like Zillow, tend to not be the most accurate and some sites are downright purveyors of fiction.
My read of your tax chart: "The municipality didn't take into account the significance or duration of the housing bubble burst until someone grieved their taxes."
There's a big difference between Property Assessment and Tax Assessment but they can relate to each other. For example, a community can decide the criteria for Property Assessment and how often it is evaluated.
For example, I sold a house for a below-market price of $36,000 that was assessed at around $8,000. Obviously, the "fair market value", which could have been closer to $45-50,000, had little to no bearing on "assessed value". This is particularly true in older, stable to declining communities where there's no reason to change property assessments more than once every 25 yrs. or so.
It is much easier for a municipality to change the 'mil rate' (tax due per $1,000 of assessed value) than to have someone go out and evaluate each home for a new property assessment. Changing the mil rate tends not to have people grieve their taxes as would changing the assessed value. It's harder for property owners to dispute their "fare share" than a change in the assessed value of the home.
Reciever of Taxes: "No one is saying the value of your home changed. The Town needs more money to offset a drop in State and Federal funding and everyone is paying the same percentage more."
Getting back to my $36,000 home sale. A couple years before I sold it the tax bill nearly doubled! The previous owner had multiple reasons for being taxed at a lower rate than I (STAR, Veteran, etc.). But, if one were to look at (ie) the Zillow listing they'd wonder, "What in heck happened?".
Actually, the same might be asked about our current home...nearly condemed single family home, cut-up into three apts....and we nearly doubled its size (George Washington did the same thing to Mount Vernon).
In your Tax History chart, I don't see the mil rate, the portion that is School Tax vs Municipal Tax, or if something happened in or around the home that might have impacted its value (ie. installation of municipal sewer) or the valuation (successful lawsuit vs the City for biased assessments). Sites, like Zillow, tend to not be the most accurate and some sites are downright purveyors of fiction.
My read of your tax chart: "The municipality didn't take into account the significance or duration of the housing bubble burst until someone grieved their taxes."