Property Taxes

[bjarvis]

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:

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$.)

Comments

[dendren.livejournal.com]

California is just whack when it comes to all of this. Our market value is about 982k, our assessed value is about 536k and our taxes are right around $6800 :P

[billeyler.livejournal.com]

The whole property valuation thing for tax purposes has always been bizarre.

In NM, we're taxed at 1/3 of the 'value' of the property/land at the date of purchase, but of course since new property taxes go into effect every year it just goes up and up. We'd be in REAL trouble if we were taxed at 2007 value, instead of 1992 value. I can't remember right now if there is an incremental increase added to the value yearly, but I don't really think so. It's still $2,300 a year here for the Richmond House.

There's no real rhyme or reason to it as far as I can tell...at least not here.