Property taxes (real estate, insurance, mortgage)

[Benz63]

Hi I have a question , I'm buying a house in school district 14 and the taxes are about 13k, do taxes stop rising after a certain point let's say after 15k?

[Walter Greenspan]

Originally Posted by Benz63

... do taxes stop rising after a certain point let's say after 15k?

No.

Property taxes are the sum of the property tax levied by up to 20 or so taxing districts in which the property is located. These taxing districts are the county, town, village, if in a village, school district, library district, fire district, water district, sewer district, police district, police headquarters district, park district, parking district, highway district, lighting district, etc., etc., etc.

Each of these taxing districts passes a budget, some by a vote of the residents of the taxing district and others by the governing board of the taxing district.

The budget is then divided by the sum of the assessed value within the taxing district to arrive at the property tax rate, which is then applied to each individual property within the taxing district to calculate that property's tax bill for that specific property.

Do this for all the 20 or so taxing districts that a property is located in and sum these 20 or so property tax bills to arrive at the total property tax bill for that property.

Repeat the next year to calculate the next year's property tax bill, and so on and so on ...

[ocngypz]

Never in a million years.

[AndreaII]

I wish they would stop increasing now. But they will keep increasing exponentially until we move off LI and out of NY State.

[twingles]

Never.

Bought my house with $4900 tax, 10 years in they were $12K.

Enjoy homeownership on Long Island!

[Benz63]

One question though, why is it such a big deal if property taxes are deductible from the yearly income?

[ocngypz]

The school district taxes are the majority of your tax bill.

Frankly, they are high when compared to other districts, but they have to be because the assessed real estate values of the district are lower.

I'm looking at a house next week in the North Shore District. 2800 sq ft ranch, central air, pool, just under 3/4 acre..MINT condition they say .... assessed value is over $700,000.. but combined taxes (inc village) are just over $14,000.

Asking price is stupid though... not my fault they bought during the bubble. Even at asking price, it's less then they paid.

I remember when the house was built. We all played there when we were kids. It was an old farm....sigh...

[Benz63]

okay i understand, but i can deduct the property taxes from the income correct?

[ocngypz]

[quote=Benz63;25075895]One question though, why is it such a big deal if property taxes are deductible from the yearly income?[/QUOT

In order to qualify for your monthly mortgage payment: the payment is based on principal, interest, taxes and insurance. Called PITI. Depending upon financing you could also be paying PMI - private mortgage insurance.

All the add-ons can push you over the limit and require a larger downpayment or a lower mortgage amount.

[Benz63]

but can i deduct my property taxes amout from my yearly income when i do my taxes? so in a sense, it doesn't matter how much are the property taxes, right? as long as i have a job of course