[jjameson922]

Possibly we are over thinking our move next year to L.V. but with the foreclosed properties being some of the best buys out there, how are the property taxes handled when a buyer purchases one of these properties that have now sold for thousands below what they were on the tax records for? Is there an appeal process and if so, is it done immediately? I can see this becoming a major problem for those who buy at good prices and also for the various cities and localities that have projected budgets based on how much current property taxes they are taking in. This could even go on further since real estate comps are based on the average sale price in the neighborhood. If the average sale price becomes markedly lower because of a high rate of foreclosures in that neighborhood, shouldn't everyone's property taxes in that neighborhood now become lower since their houses are considered worth less?

[olecapt]

Originally Posted by jjameson922

Possibly we are over thinking our move next year to L.V. but with the foreclosed properties being some of the best buys out there, how are the property taxes handled when a buyer purchases one of these properties that have now sold for thousands below what they were on the tax records for? Is there an appeal process and if so, is it done immediately? I can see this becoming a major problem for those who buy at good prices and also for the various cities and localities that have projected budgets based on how much current property taxes they are taking in. This could even go on further since real estate comps are based on the average sale price in the neighborhood. If the average sale price becomes markedly lower because of a high rate of foreclosures in that neighborhood, shouldn't everyone's property taxes in that neighborhood now become lower since their houses are considered worth less?

A sale triggers a reassessment. There is also an automatic reassessment of the neighborhood that goes on periodically.

That does not however lower your taxes. The maximum tax is based upon market value...around 1%. But the amount taxes can rise from year to year is capped. The result is that many pay taxes at rates well below the maximum. This all washes out of a few years if values stay flat or decrease as the taxes move up to the 1% number. I doubt any house built before 2004 is taxed at the max at this point. Homes built in 2004/5/6 will likely have their taxes lowered, in some cases substantially.

There is also an appeals process if it does not work out right. See the Clark County Assessors Page.

[Eric Young]

Assessed values are determined annually by a formula which looks at all sales and values of the previous year. You can read details of the formula here: http://www.co.clark.nv.us/ASSESSOR/PropTxs.htm

Generally-speaking, properties that are currently assessed at very high rates relative to current value or recent purchase price will be automatically assessed downwards next year. Many will see significant tax reductions.

However, property owners that purchased prior to 2004 will probably not see any downward adjustment in their taxes (and if they do, it will be minor). This is because increases in their property taxes have been capped at 3% per year all along and their taxes bills in '05 and '06 did not reflect the spike in valuations.

Individuals always have the right to challenge their assessed value. Doing so is task less daunting than you might expect. The process, is described on the Assessor's site:

If, in your opinion, the taxable value of your property exceeds the value indicated in the real estate market, please call or come in to the Assessor's Office and discuss your appraisal with an appraiser. The Assessor welcomes the opportunity to review any evidence you can provide that will show the valuation exceeds market value. If, after discussing the matter with the Assessor's staff, a difference of opinion still exists, you may appeal your assessment to the County Board of Equalization. You may obtain the appeal forms from the Assessor's Office during the month of December until the deadline for filing, which is January 16. Completed forms must be returned to the Assessor's Office by the appeal filing deadline date. Please call 702-455-3891 to have an appeal form mailed to you. The forms are relatively easy so you may represent yourself rather than incur legal expenses.

Hope this helps.

[Randy Culture]

I wonder how the decrease in taxes collected will affect the county government. In other parts of the country, they are talking about defaulting on public employee pensions, layoffs etc.

The politicians assumed the gravy train would never end.

[Eric Young]

I brought the subject up with several city (although not county) council folks in 2005 and again in 2006. It just wasn't seen as a priority at the time.

Personally, I don't really blame the politicos for not addressing the matter earlier when today's (and tomorrow's) damage could have been mitigated, though. The reality of life for public officials is that running a government is a constant triage situation. There simply isn't enough time or staff or money to deal with anything but the most serious problems at any given time.

As tax receipts start to fall, the issue will get attention.

[olecapt]

Uhh why do you think the tax revenue is going down? I don't think so. There is more than enough new revenue from the capped growth to offset any loses from reassessments. Revenue will likely not grow as fast...but that is not as bad a problem as decreasing revenue is it?

The agencies facing budget reductions are those funded by the state. They are hit by the drop in sales tax revenue.

[airics]

little confused, my house built in 05 had a assessed value of 90k, but i just recd a paper showing new assessed value of 75k so do my taxes go down..my taxes right now are 1900ish

[olecapt]

Originally Posted by airics

little confused, my house built in 05 had a assessed value of 90k, but i just recd a paper showing new assessed value of 75k so do my taxes go down..my taxes right now are 1900ish

Probably move little if at all. The taxes you pay are in keeping with a 200K house...which is a little less than the value of your home I think.

[airics]

but what happens with the house i am in the process of purchasing now.. 4/07 $428k 11/07 bank buys at auction for $318k.. 12/07. i buy from bank for 252k... would think that the property taxes would drop dramatically... the 1st house from previous question actually costed more 260k - 1900 tax this house lists taxes at 2900, so am i to assume when it gets reassessed it will be closer to 1900? built in 2004... thanks , sorry for all the questions, ps happy new year..