Listening to NPR on 6/6/03, I heard a story on California's
Proposition 13. It has reminded me of something that has had me
scratching my head for several years now. Maybe you can help.
I, too, live in a state (FL), where the property tax assessment on
your primary residence is based upon the price you paid for the home,
limited to a 2 - 3% annual increase in assessment value. If the
market value of the home outpaces the 2-3% increase in assessed value,
my taxes are not affected, as the home cannot be reassessed for tax
purposes until after it is sold. So, my property tax can remain
fairly predictable throughout the period in which I live in my home.
After a sale, the assessment cap is reinstated, but starting at the
latest sales price.
With the boom in property values experienced in the last 6 - 8 years,
and the accompanying record sales of existing homes, it makes sense
that the collecting entities (counties in FL) are experiencing a boom
in revenue from property taxes. However, I haven't seen this
addressed anywhere.
For example. I purchased my home from a family who lived in it for 11
years. Their purchase price was 110K, and their taxes at the time of
my purchase were approximately $1450 per year. Well, I bought their
home for 280K, and upon reassessment, my taxes will increase to the
neighborhood of 5K. Given that this happens every time a home in my
neighborhood is sold, it sounds to me as if it is pretty lucrative
for my county.
I would like to see examples of where some enterprising reporter,
student, public official has looked into this since the early 2002, in
states with the same 'homestead protection' as my own. Can you find
such stories for me? |
