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Residential Property Tax

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Ariba

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Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Colorado
Just curious, how does your municipality calculate your residential property tax? In Denver, CO for instance the formula is; Assessed Value x Mill Levy. The Assessed Value is 7.20% of the actual value (Appraised Value). Properties are reappraised every 2-years. The Mill Levy in Denver is 0.081547. So for a typical residence in Denver valued at $360,000 x 0.072 x 0.081547 = $2,114 property tax. Sixty percent of that goes to support the Denver Public Schools system.

I keep reading horror stories from California and New York for example that property owners pay 3-to-4 times this amount.

How does that compare to your residential property tax?
 

Terrel L. Shields

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May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
20% assessment ratio, typically a nickel per tax with some towns 0.06 or so. Mill levy ranges by school district and city.

$360,000 home x 20% = 72,000 x .055 say = $3,960. That's Arkansas. Some counties are 0.04 or less rates. NWA is the highest in state likely

Oklahoma, about the same as Arkansas so long as their assessors are "marking to market" property. Some counties are behind times. The average effective property tax rate in Oklahoma County is 1.05%. In the parts of Oklahoma City that are included in the Oklahoma City School District, the total mill rate for 2014 was 113.84 mills. More than half of that is levied by the school district, which has a rate of 59.36 mills.

So you get to buy your house back every couple of generations of so...
 

Ariba

Senior Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Colorado
What I find interesting, having appraised in 6-counties of the Denver metropolitan area, is the variety of property assessments. There are counties were my appraised values for the property fell within 5- to-10%% of the county assessments and then there are counties were their assessed values are consistently 20% below my appraised property value. These are the some counties/municipalities that always cry every year to the State legislators for additional school and road funding. Go figure
 

Gobears81

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Joined
Nov 7, 2013
Professional Status
Certified General Appraiser
State
Illinois
In IL, assessed value is 33.33% of the MV opinion and the tax rate is typically between 7% and 10%, though some locations have a higher rate. I've found that some of the more depressed locations in IL have the highest rates and I think Rockford has a 14% rate IIRC. So if your house has an assessor's MV opinion of $250,000 and the tax rate is 10%, taxes are $8,333 per year. That ignores possible exemptions for seniors and owner occupancy.
 
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Michigan CG

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Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
So if your house has an assessor's MV opinion of $250,000 and the tax rate is 10%, taxes are $8,333 per year. That ignores possible exemptions for seniors and owner occupancy.

In my county the taxes for a $250,000 house are about $3,500/year.
 

PL1957

Senior Member
Joined
Jul 19, 2004
Professional Status
Certified General Appraiser
State
Illinois
Suburban Chicago - $350K house - $9,000 per year
SW Michigan - $450K house - $6,000 per year
NE Florida - $350K condo - $4,400 per year
 

Michigan CG

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Professional Status
Certified General Appraiser
State
Michigan
Suburban Chicago - $350K house - $9,000 per year
SW Michigan - $450K house - $6,000 per year
NE Florida - $350K condo - $4,400 per year

So 2.6%, 1.3% and 1.2%.

I didn't study government in college but I often wonder why economies of scale don't apply to large cities. I have my own personal opinions why taxes are so high in cities but I would be interested in what others think are the reasons for high taxes.
 

PL1957

Senior Member
Joined
Jul 19, 2004
Professional Status
Certified General Appraiser
State
Illinois
So 2.6%, 1.3% and 1.2%.

I didn't study government in college but I often wonder why economies of scale don't apply to large cities. I have my own personal opinions why taxes are so high in cities but I would be interested in what others think are the reasons for high taxes.
Infrastructure and services. Look at things like availability of public transportation, museums, parks, libraries, schools, colleges, etc. not to mention social and support services available. I'm not saying all are necessary or efficiently provided, but there are significant differences.
 

Tom4value

Senior Member
Joined
Dec 4, 2016
Professional Status
Certified Residential Appraiser
State
Massachusetts
In MA, assessment is 100% of market valuation. That’s where the conformity ends. Revals are anywhere from 2years to 5. Towns can have one rate or residential and commercial. Some communities also have additional rates for water/sewer/fire and ocean districts. Bottom line is you have to check.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Down here, you are assessed on 100% of sale price in year 1, less exemptions. However, increases are limited to 3% per year. You have a 15% increase in values, but only a 3% increase in AV. As a result, it doesn't take long to have a significant disconnect on MV vs AV. Tax rate equates to around $1.40 per hundred for all taxes or 1.4%.

Our small home we bought about 3 1/2 years ago has appreciated about 100%, assessed at 50% of value after exemptions. Taxes at about $1200. Conversely the home we sold in Texas was assessed at about 2.75% of value, reassessed at MV every 2-3 years. Taxes this year would be about $4800 for a value not much higher than my home here is worth.
 
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