Property Tax Assessments 2019

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chaglang
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Re: Property Tax Assessments 2019

Post by chaglang » Tue Jul 09, 2019 5:34 am

At that rate it will take them at least 32 years to get my house up to market value. I wonder if there will be a lawsuit by people whose properties are already assessed at market value.

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Steve52
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Re: Property Tax Assessments 2019

Post by Steve52 » Tue Jul 09, 2019 6:27 am

shinatoo wrote:
Sat Jul 06, 2019 8:13 am
My hope is that the different taxing jurisdictions lower their rates so that the impact of all this isn't so great, but also they are able to keep their budgets fully funded. But..

I'm just going to go ahead and say this. As someone whos property was already assessed near market value, and who assessment went up about 10% to get me in line with market values, I am happy to see everyone else's property is getting inline with the rules on how it should be assessed. Those of us who have been at or near market value have been carrying a disproportionate burden for funding the county, city, school district and libraries. The fairest thing is for everyone to be at market value.

I don't love how abrupt it happened, or the PR around it.

And if you had opened your assessment to discover your new "market value" was double, triple, or even quadruple what the real world value (hard core numbers not fantasy land economics) of your property had been the previous year?

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Re: Property Tax Assessments 2019

Post by shinatoo » Tue Jul 09, 2019 10:25 am

Steve52 wrote:
Tue Jul 09, 2019 6:27 am
shinatoo wrote:
Sat Jul 06, 2019 8:13 am
My hope is that the different taxing jurisdictions lower their rates so that the impact of all this isn't so great, but also they are able to keep their budgets fully funded. But..

I'm just going to go ahead and say this. As someone whos property was already assessed near market value, and who assessment went up about 10% to get me in line with market values, I am happy to see everyone else's property is getting inline with the rules on how it should be assessed. Those of us who have been at or near market value have been carrying a disproportionate burden for funding the county, city, school district and libraries. The fairest thing is for everyone to be at market value.

I don't love how abrupt it happened, or the PR around it.

And if you had opened your assessment to discover your new "market value" was double, triple, or even quadruple what the real world value (hard core numbers not fantasy land economics) of your property had been the previous year?
I would have been pissed. You shot right past my point. Everyone needs to be in line with the state rules, which are that your property is to be assessed at market value. That is no way advocating that your property should be assessed at triple market value. That is idiotic.

So answer me this, if your property is assessed at market value and you discovered that all your neighbors were assessed at 1/4th market value, how would you feel?
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swid
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Re: Property Tax Assessments 2019

Post by swid » Tue Jul 09, 2019 11:26 am

I don't have the motivation to wade back through the previous posts to see if it's been mentioned, but any sort of information (property class, approximate year built, square footage, large-scale neighborhood it's in, etc.) about the property Steve52 keeps referring to would go a long way in providing context.

If it's residential, I'm sure the regulars here would have a good idea what the current market value would be based that limited set of data alone.

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beautyfromashes
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Re: Property Tax Assessments 2019

Post by beautyfromashes » Tue Jul 09, 2019 11:32 am

A purchase should automatically adjust market value. If you purchased a house for $200,000, that should be the new assessed value. If an old lady bought a house 20 years ago and it was assessed at $50k and they never adjusted it, I’d be great with her paying below the market value. She came to a depressed neighborhood, stayed for a long time and deserves the smaller tax bill. Good for her!

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Re: Property Tax Assessments 2019

Post by shinatoo » Tue Jul 09, 2019 1:43 pm

beautyfromashes wrote:
Tue Jul 09, 2019 11:32 am
A purchase should automatically adjust market value. If you purchased a house for $200,000, that should be the new assessed value. If an old lady bought a house 20 years ago and it was assessed at $50k and they never adjusted it, I’d be great with her paying below the market value. She came to a depressed neighborhood, stayed for a long time and deserves the smaller tax bill. Good for her!
That's how it works in California and I'm fine with that. It also has the side effect of keeping neighborhoods from turning over too quickly.
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Re: Property Tax Assessments 2019

Post by flyingember » Tue Jul 09, 2019 2:52 pm

Such a system shouldn't be based on the sale price.

Can game the system too easily. If you sell your friend a home for $1000 and everything else is selling for $100000 there's no way that should set the taxable value. Maybe require an independent assessment to participate in this program. Without it being done your home assessment can go up.

It also shouldn't be possible for your taxes to go down under that model. If you buy a home at $50k and tear it down you will continue paying taxes based on owning a home there until you sell.

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Re: Property Tax Assessments 2019

Post by shinatoo » Tue Jul 09, 2019 3:15 pm

flyingember wrote:
Tue Jul 09, 2019 2:52 pm
Such a system shouldn't be based on the sale price.

Can game the system too easily. If you sell your friend a home for $1000 and everything else is selling for $100000 there's no way that should set the taxable value. Maybe require an independent assessment to participate in this program. Without it being done your home assessment can go up.

It also shouldn't be possible for your taxes to go down under that model. If you buy a home at $50k and tear it down you will continue paying taxes based on owning a home there until you sell.
They already solved this problem with a car sales tax. Used to be able to scam the system by reporting the sale price as a dollar, now it has to be within the reasonable value.

Also, you would have to report the same sale price to your insurance and then your reimbursable value would be based on that. You by the house at $1000 and it burns down, the most you could get would be $4000. Most insurers place the max replacement value at 4 times the purchase price.

And then there is the bank, that purchase is reported by them and they want you to keep everything open a legal.

Not impossible to get around, but very difficult. It would have to be a cash purchase.

Even when you inherit a property in California they reassess based on fair market value.
Quocunque Jeceris Stabit

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beautyfromashes
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Re: Property Tax Assessments 2019

Post by beautyfromashes » Tue Jul 09, 2019 3:47 pm

Just make purchases apply to increases in assessment. Decreases would require a petition by the purchaser or if value is decreased due to tearing down property. Honestly, if you take away value I don’t really think you should get a decrease.

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Re: Property Tax Assessments 2019

Post by shinatoo » Tue Jul 09, 2019 4:01 pm

Even better would be to base everything on a land tax.
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mean
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Re: Property Tax Assessments 2019

Post by mean » Tue Jul 09, 2019 6:26 pm

BAHUA WHERE ARE YOU

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Re: Property Tax Assessments 2019

Post by flyingember » Wed Jul 10, 2019 10:36 am

My other idea is this:

When we sold one house the bank went looking for the most comparable home style. It didn't matter if that home was 10 blocks away, they used it. The homes <3 blocks away weren't similar enough to set my value despite our, we had to lower our price to match a different neighborhood.


Let's say for this example you own a home you paid $50k for, all the homes are the same age and similar prices and all fairly appraised at $50k for uniformity. Homes nearby are starting to sell for much higher but hasn't reached your neighborhood.

33% of your assessed value would come from recent sales. Pretty straightforward.
33% would come from your home itself.
33% would come from the homes around you. I like the idea of the immediatelly surrounding homes because people buying will look in your neighbor's yards to decide if to buy.
Add these three numbers together and divide by three.

For the third number let's say one neighbor puts on an addition. Their home is now worth $75k.
So you would add up the up to 8 homes surrounding yours and divide by 8. For $53.1k.

The last two numbers help push down a hot market that hasn't reached your street and keeps value up if your street stays popular in a declining area.

So maybe the value based on sales is $80k.
Your value is $50k
Your area value is $53.1k

You get an assessed value of $61k.

Let's say all 8 homes around you get torn down and the lots are all worth $3k.

$80k
$50k
$3k

Your assessed value is $44k. You still have value because people might be interested in building on the empty lots based on sales data. If homes aren't selling nearby your assessed value will be much lower.

Those lots also will assess higher. For all 8 lots their numbers are

80k
50k
8.8k

So their assessed value would be $13.9k, not the $3k they could sell for. It encourages an owner to build on an empty lot since the nearby sales and remaining home quadruples their tax bill.

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Re: Property Tax Assessments 2019

Post by herrfrank » Wed Jul 10, 2019 11:00 am

beautyfromashes wrote:
Mon Jul 08, 2019 4:49 pm
County extended the BOE appeal deadline to the end of the month and are considering capping increases at 12-14%.
Is that cap for residential only? A lot of the big increases (2x, 3x, even more) are on commercial properties. Not saying the new assessments are not correct -- just wondering how long for the city to get to 'fair market' values. Some of these commercial properties were assessed at ridiculously low numbers for decades.

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beautyfromashes
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Re: Property Tax Assessments 2019

Post by beautyfromashes » Wed Jul 10, 2019 11:17 am

herrfrank wrote:
Wed Jul 10, 2019 11:00 am
beautyfromashes wrote:
Mon Jul 08, 2019 4:49 pm
County extended the BOE appeal deadline to the end of the month and are considering capping increases at 12-14%.
Is that cap for residential only? A lot of the big increases (2x, 3x, even more) are on commercial properties. Not saying the new assessments are not correct -- just wondering how long for the city to get to 'fair market' values. Some of these commercial properties were assessed at ridiculously low numbers for decades.
Sorry, I don’t know.

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Steve52
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Re: Property Tax Assessments 2019

Post by Steve52 » Wed Jul 10, 2019 6:05 pm

Preston Smith has been on the Board of Equalization for 12 years and represents the Blue Springs School District. (KMCB 9 July 5, 2019)

“I don’t have confidence they know what they’re doing,” Smith said. “This is just not working. This is not a formula for success.”

I'm beginning to be believe he may be correct.

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chaglang
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Re: Property Tax Assessments 2019

Post by chaglang » Thu Jul 11, 2019 6:31 am

For everyone who has been paying a fraction of the fair market value of their property for years: how did you think the county was coming up with its numbers? I ask because the old valuations suggest that the county never knew what it was doing, but everyone was cool with it because the error was in their favor.

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Re: Property Tax Assessments 2019

Post by KCPowercat » Thu Jul 11, 2019 8:05 am

I thought it was always just a percent of real market value in a standard formula they used. Never really considered why.

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Re: Property Tax Assessments 2019

Post by flyingember » Thu Jul 11, 2019 8:32 am

chaglang wrote:
Thu Jul 11, 2019 6:31 am
For everyone who has been paying a fraction of the fair market value of their property for years: how did you think the county was coming up with its numbers? I ask because the old valuations suggest that the county never knew what it was doing, but everyone was cool with it because the error was in their favor.
I bet it's weighted so you need more than a certain number sales to make a difference but the number of new builds and increasing sales went over some thresshold finally and it had a ripple effect. Like if your home goes up it makes your neighbor go up with makes your neighbor go up and so on.

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Eon Blue
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Re: Property Tax Assessments 2019

Post by Eon Blue » Sat Jul 13, 2019 8:12 am

KCPowercat wrote:
Thu Jul 11, 2019 8:05 am
I thought it was always just a percent of real market value in a standard formula they used. Never really considered why.
+1

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Re: Property Tax Assessments 2019

Post by johnmatrix » Mon Jul 15, 2019 9:29 am

Ruh-Roh looks like Frank Whites buddy got a good deal.


https://www.kctv5.com/news/investigatio ... abf0a.html

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