StoneHynes145
The Tax Collector Will be your Friend
At the beginning of January, the {san diego county tax collector Office, and many other counties in North Carolina delivered notices of latest Real Estate Valuations. The tax office is legally obligated to collect property taxes depending on 100% of the "true value in money." These valuations represented the tax office's best guess for the price where the property would change hands.
As an example, when Buyer B purchases a property for say $585,000, that price represents the "true value in money" how the property was worth for the buyer.
However, because the tax office reappraisal is done as much as 1 . 5 years prior to the new values are created public, the tax value will seldom reflect a current sales price, therefore the Buyer's new goverment tax bill is going to be less than whatever they paid for the house.
However, 4 years later, if the property is again reappraised by the tax office, that $585,000 sales price is going to be factored in to the tax office calculations. Since the tax values are not set for individual properties but you are instead calculated to get a number of similar properties, the new appraisal in 2011 may still be below the purchase price paid in 2007.
Think that we sell a house in January 2007 for $585,000. The tax value continues to be $170,800 because the last reappraisal in 2001. In January 2007 the tax value increased to $300,000 understanding that tax value will stay in position until January 2011 when another reappraisal becomes public. Taxes collected in January of 2008 through 2011 will be based on on $300,000.
The county commissioners and town council can transform the tax rate every year if they're like doing so understanding that would impact the annual goverment tax bill. Normally this transformation are only a small % also it would be made throughout a public hearing, so a property owner can express their opinion towards the council.
Included in the reassessment process, in January 2011, the tax values will be based on all comparable sales in the newest 4 year period and undoubtedly the tax value for that property we sold will have increased since 2007, but even so the need for that specific property may not be add up to the $585,000 sales expense of 2007.
We could therefore say the Tax Office can be your friend because regardless of the truth that taxes will undoubtedly always increase, your property are only reappraised every 4 years and taxes will seldom, if ever, be based around the most recent sales price.
Buyers can be assured, therefore, they may be paying taxes on the value that's under your market value with the property.
Sellers can see that in spite of the significant increase in tax value, the particular market value remains larger, as well as the value of their investment continues to increase.
