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Property Taxes
We bought our humble abode in the Maryland suburbs of Washingto DC in the tail-end of 1999. The state re-assessed our property value each subsequent December as follows:
The numbers are a bit hard to follow. Maryland reappraises property value every three years (2000, 2003, 2006), but state law only allows tax assessment value to rise only 10% per year. Property values have been rising much faster than the 10% cap allows so even if values flattened immediately, our taxable value will keep increasing for five more years.
Our actual property tax bill has risen 46% in the time we've owned our property. While I consider a bill of nearly $3,000 to be fairly reasonable for platinum-level gov't services we get from our county, further increases are gonna start to be painful. I can't imagine what people on fixed incomes must feel... suddenly cheap real estate in the backwoods of South Dakota must look fairly attractive.
It would appear that our home increased in value 318% between 1999 and now --$149,580 to $475,870-- but the more interesting numbers come in the fine print on the re-evaluation years...
From this, we see that the value of our otherwise uninteresting 0.15 acres went up 498% in the span of six years, whereas our house grew 162%, then dropped 26%. I guess they didn't like the computer room remodelling.
(All values in US$.)
| Year | Market Appraised Value | Phased-In Market Value | Actual Taxed Value | Actual Taxes |
|---|---|---|---|---|
| 2000 | $207,070 | $149,580 | $1,956.60 | |
| 2001 | $168,743 | $164,532 | $1,947.73 | |
| 2002 | $187,906 | $164,532 | $2,292.72 | |
| 2003 | $355,890 | $207,070 | $164,532 | $2,605.14 |
| 2004 | $256,676 | $218,991 | $2,834.50 | |
| 2005 | $306,282 | $218,991 | $2,886.58 | |
| 2006 | $475,870 | $355,890 | $218,991 | $2,865.52 |
| 2007 | $395,883 | $291,476 | TBD | |
| 2008 | $435,876 | $291,476 | TBD | |
| 2009 | $475,870 | $291,476 | TBD |
The numbers are a bit hard to follow. Maryland reappraises property value every three years (2000, 2003, 2006), but state law only allows tax assessment value to rise only 10% per year. Property values have been rising much faster than the 10% cap allows so even if values flattened immediately, our taxable value will keep increasing for five more years.
Our actual property tax bill has risen 46% in the time we've owned our property. While I consider a bill of nearly $3,000 to be fairly reasonable for platinum-level gov't services we get from our county, further increases are gonna start to be painful. I can't imagine what people on fixed incomes must feel... suddenly cheap real estate in the backwoods of South Dakota must look fairly attractive.
It would appear that our home increased in value 318% between 1999 and now --$149,580 to $475,870-- but the more interesting numbers come in the fine print on the re-evaluation years...
| Year | Value of Land | Value of Buildings | Total Value |
|---|---|---|---|
| 2000 | $60,460 | $146,610 | $207,070 |
| 2003 | $120,920 | $234,970 | $355,890 |
| 2006 | $301,080 | $174,790 | $475,870 |
From this, we see that the value of our otherwise uninteresting 0.15 acres went up 498% in the span of six years, whereas our house grew 162%, then dropped 26%. I guess they didn't like the computer room remodelling.
(All values in US$.)