A few days ago I received our property taxes for 2015-16. Initially, when I looked at our taxes I was expecting a slight increase from last year. However, when I looked I had to do a double take with how much they had increased. At first, I was sort of dumbfounded and upset, but when I looked a little deeper I realized why they had gone up so much.
When we bought our house the assessment on the house over the past few years had been actually quite low. In fact, the house was assessed about $40,000 cheaper than what we had paid for the house. Our new property tax bill assessed the house at what we paid for it, which explains the 25% increase.
Now I could contest this a bit if I wanted and I am going to talk to our mortgage company about this. Just because we bought the house at a certain assessment, doesn’t mean the way the city values the property should be at its current assessment level. I mean for an assessment to go up almost 25% in one year that is a pretty hot real estate market and while property values have gone up year over year they certainly haven’t gone up that much.
At the same time, the assessment on the house previously one could argue was a little low. I am not sure how they assess the value of the house, but the assessment the city has provided is actually much lower than overall value of the property.
So while I am going to inquire about checking into “reassessing” the property for tax purposes I am not totally upset that our taxes went up that much.
The only thing that it does it that it screws up our escrow payments for a short bit. Because my bank had been working under the old property tax assessment I am going to have to fork over a couple of hundred bucks to cover the quarterly tax payment that is coming up. Not necessarily a big deal, but a nuisance nonetheless.
How much have your property taxes gone up? How have you dealt with it, if at all?