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Property taxes in most of america are a made up number. The county needs $X and levies Y% in property tax and the auditors use a formula to solve for $Z, which
by mywittyname 5y ago
Property taxes in most of america are a made up number. The county needs $X and levies Y% in property tax and the auditors use a formula to solve for $Z, which is the value of an individual home. This is exactly why, all over the country, you'll find houses that just sold for $500k which have an "appraised value" of like $120k. Property taxes are dictated by the size of $X, not really the value or volume of houses.
Some areas have legislation that prevents property taxes from increasing at too fast a rate. In those regions, the formula is changed a bit so that newer residences are charged at a high initial rate.
- nomoreplease 5y ago> Property taxes in most of america are a made up number. Except in States that have property tax and no income tax, the appraised value is close to the sale value, usually slightly under. So in a 500k example, the appraised value is something like 450k (or more). Then your property tax might be 2% of that appraised value, which results in a $9,000 property tax bill every year, even when you retire. If speculative buying drives up the price over 10 years, it also drives up the appraised value and also your tax bill