FTHB - State wants to assess our house?? (color, sink, price)

[MajesticCALIFORNIAN]

Hi everyone,

I recently purchased a home in June 09, I am a first time home buyer(guess now owner) and am clueless on tax assessment and stuff..

Our lawyer had stated property tax won't change when we closed, the house on record has assesed value of 110,000 but it is an OLD home was in sellers family for generations..

We paid 230k in June, and now recieved a letter stating New home owners have right to have their homes reassessed, and that there may be a reduction due to 15-20% market decline..

What should I do? If I get it reassesed will they increase taxes considering I paid 230k for it?

Thanks for your help!

[Briolat21]

Well, you can't delay the reassessment forever. At some point, it will be reassessed. Whether or not your taxes go up, will depend on your state's laws, and whatever ballot initiatives voters have agreed upon.

In MI, (where I have the most experience) - houses are assessed at sale, and taxed on new assessment. Then, increase or decrease is limited to a specific rate due to a proposition the voters passed in the late '90's. So, once you buy a house you will be cushioned from great changes from year to year. However, the year you buy - the changes in taxes what the previous owner paid and what you will pay may be huge.

I don't know 'bout California (based on your user name, I guess that's where you are) - but I thought they had some ballot measure limiting property taxes as well. But, again, I don't know that you can avoid the reassessment entirely - the county recorder (deed office) will know of the sale of the property and the price you paid - so its not like you're going to be able to hide that forever.

My guess is - your taxes are going to go up, best to figure out what they'll be and start budgeting for it.

Good luck!

[Cosmic]

Lots of stuff to know about before buying a house. The rules and regs how the taxes work in your particular area is one of them, anything else is running more than blind.

Bout like Briolat21 sezs. It varies so much state to state and maybe even by local community. IIRC CA is one of those few states where the proposition protection carries over to the former owner if they buy something new, but in your case you had nothing before so might be in a position to get Jock Shock. That situation where you can have a sinking feeling in the groin area. You might be one of those who can get tagged big time based on so called market rates. Always those who can fall thru the cracks in any game.

Most places they have laws that require reassessment every so many years anyway. 3 to 5 years is typical. The rub being what rules are in effect and how would you be affected. Many areas, there are lots of other considerations, like age, income, color of dog, name of first born.

Some places don't put all the levy's directly in the property tax. You just got to know the local rules going into the game. In Ohio that is super true, every county is different, including how the school part is taxed and billed. So many exceptions and conditions based on so many non standard methods. Many places you must know the rules and file paperwork for certain exemption prior to some date, nobody sezs it will be easy. Somethings are automatic, others might not be. Being a dummy about the subject is not wise.

CA is probably a state where the local tax man will use any method to get a few extra dollars. You sure better know the rules from your prespective, I bet he will from his. You can start by asking the neighbors and then doing a lot of research. Might be too late but at least you might have a clue how to zig or zag to make the best of it from this point on. I'm sure all this stuff has been in your newspaper for years, just you never thought it would apply to you. Info is always there and debated ad nasuem on the local level. Especially at election time. Welcome to the club, now you have to learn to pay attention.