How are property taxes determined?

Question

I've seen some very simliar homes in the same neighborhood with VERY different taxes. Just wondering it works.

Thanks =)

Answer 1

They are usually evaluated by the town or city.  Possibly the county, depending where you live.  So every place has their own set of criteria.

There are many items that go into an assessment.  Square footage, size of the lot, age of the home, porches, basement, deck, finished attic space, central air, number of bathrooms, etc.  Also, whether or not the assessor is aware of any improvements done and when the last assessment was performed.  

Many places have all this information online if the municipality has a website.

Answer 2

It depends on what city or county you're talking about.  In a lot of northeastern states, tax assessments aren't done very regularly.  Between assessments, a property is reassessed every time it is sold.  So those who have been in their homes longer can pay a lot less than those who have recently moved in.

Also in some states, they have caps on the percentage property tax can increase each year while you own your home.  So again, those who have been in their homes longer pay less.

Answer 3

If, as it sounds, you are in my state, California, property taxes are 1% of the assessed value of the property plus its share of bonds and other voter approved taxes (like the levy in my area to support my volunteer fire department.)  The assessed value is the fair market value--normally the purchase price-- when the property was purchased.  This value is increased by a maximum of 2% per year.  If you have basically identical houses, one purchased 30 years ago for $100,000 and another purchased last year for $300,000, the recent purchaser is going to pay about three times what the long time resident pays.