Property tax confusion for houses that sell for much less than what owner paid

[dharmagirl]

If a homeowner paid $750,000 for a Temecula tract home in 2005, and the taxes are $9,000/year (1.2%based on the home’s appraised value in 2005), will the tax rate adjust down to $4560 to reflect the lower selling price of $380K in 2008?

I’m sorry if this seems like a stupid question. In my last two home ownership situations, the taxes went UP because I paid more than the seller had paid for it. I dont think that is happening much in So CA these days…

DG

[SD Realtor]

Your property taxes will be based on the assessed value of your home. When a home sells it gets reassessed. In the past we are all used to that assessment going up and thus property taxes going up. That trend is over. In your example above you posted some sample numbers that could indeed represent the new assessed value but the county assessor makes the assessment. If the assessor thinks the home sold for well below market then the assessor will value the home higher then the sales price. In this market I am not sure if that will happen. Your quote above seems reasonable but is not gauranteed.

SD Realtor

[SD Realtor]

Your property taxes will be based on the assessed value of your home. When a home sells it gets reassessed. In the past we are all used to that assessment going up and thus property taxes going up. That trend is over. In your example above you posted some sample numbers that could indeed represent the new assessed value but the county assessor makes the assessment. If the assessor thinks the home sold for well below market then the assessor will value the home higher then the sales price. In this market I am not sure if that will happen. Your quote above seems reasonable but is not gauranteed.

SD Realtor

[SD Realtor]

Your property taxes will be based on the assessed value of your home. When a home sells it gets reassessed. In the past we are all used to that assessment going up and thus property taxes going up. That trend is over. In your example above you posted some sample numbers that could indeed represent the new assessed value but the county assessor makes the assessment. If the assessor thinks the home sold for well below market then the assessor will value the home higher then the sales price. In this market I am not sure if that will happen. Your quote above seems reasonable but is not gauranteed.

SD Realtor

[SD Realtor]

Your property taxes will be based on the assessed value of your home. When a home sells it gets reassessed. In the past we are all used to that assessment going up and thus property taxes going up. That trend is over. In your example above you posted some sample numbers that could indeed represent the new assessed value but the county assessor makes the assessment. If the assessor thinks the home sold for well below market then the assessor will value the home higher then the sales price. In this market I am not sure if that will happen. Your quote above seems reasonable but is not gauranteed.

SD Realtor

[SD Realtor]

Your property taxes will be based on the assessed value of your home. When a home sells it gets reassessed. In the past we are all used to that assessment going up and thus property taxes going up. That trend is over. In your example above you posted some sample numbers that could indeed represent the new assessed value but the county assessor makes the assessment. If the assessor thinks the home sold for well below market then the assessor will value the home higher then the sales price. In this market I am not sure if that will happen. Your quote above seems reasonable but is not gauranteed.

SD Realtor

[dharmagirl]

Thanks, SDR!

It does seem conter-intuitive that the tax rate would go DOWN. Hopefully, that will be the case when I eventually buy a home.

[dharmagirl]

Thanks, SDR!

It does seem conter-intuitive that the tax rate would go DOWN. Hopefully, that will be the case when I eventually buy a home.

[dharmagirl]

Thanks, SDR!

It does seem conter-intuitive that the tax rate would go DOWN. Hopefully, that will be the case when I eventually buy a home.

[dharmagirl]

Thanks, SDR!

It does seem conter-intuitive that the tax rate would go DOWN. Hopefully, that will be the case when I eventually buy a home.

[dharmagirl]

Thanks, SDR!

It does seem conter-intuitive that the tax rate would go DOWN. Hopefully, that will be the case when I eventually buy a home.

[csr_sd]

Hi-

The tax rate does not necessarily decline- in your example it is 1.2%. It will still be 1.2%, the total tax bill will decline as prices decline(e.g 1.2%@300k or 1.2%@600k). That is unless the tax rate declines based on the value of the property (e.g 1.2%@300k; 1.6%@600k). Now it would be great if the tax rate also declined!, but I think it is essentially fixed, no?

cheers

csr_sd

[csr_sd]

Hi-

The tax rate does not necessarily decline- in your example it is 1.2%. It will still be 1.2%, the total tax bill will decline as prices decline(e.g 1.2%@300k or 1.2%@600k). That is unless the tax rate declines based on the value of the property (e.g 1.2%@300k; 1.6%@600k). Now it would be great if the tax rate also declined!, but I think it is essentially fixed, no?

cheers

csr_sd

[csr_sd]

Hi-

The tax rate does not necessarily decline- in your example it is 1.2%. It will still be 1.2%, the total tax bill will decline as prices decline(e.g 1.2%@300k or 1.2%@600k). That is unless the tax rate declines based on the value of the property (e.g 1.2%@300k; 1.6%@600k). Now it would be great if the tax rate also declined!, but I think it is essentially fixed, no?

cheers

csr_sd

[csr_sd]

Hi-

The tax rate does not necessarily decline- in your example it is 1.2%. It will still be 1.2%, the total tax bill will decline as prices decline(e.g 1.2%@300k or 1.2%@600k). That is unless the tax rate declines based on the value of the property (e.g 1.2%@300k; 1.6%@600k). Now it would be great if the tax rate also declined!, but I think it is essentially fixed, no?

cheers

csr_sd

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