Property Tax Notification?

Question

The tax value of my property is less than the assessed value done when i bought the property less than a year ago. Even though this lowers my yearly tax bill, will i be caught later on when i try and sell the place? What are the pro's and con's (if any) of having a difference between the assessed value and tax value of a property?

Answer 1

The assessed value and the tax value are the same thing.

The county assessor uses your assessed value to figure out the taxes on the property. The board of supervisors decide what the tax rate is, say 1.25%, and they multiply that by your assessed value to get your taxable amount.

In addition, every year your assessed value goes up a certain percentage to account for inflation.

Answer 2

The assessed value and the tax value are the same thing. I think you mean the appraised value which should represent the market value of the home. Some jurisdictions set the assessed value below the market value. If the market value is less then the assessed value you can appeal to the county to re-assess the property and reduce your tax bill. The tax value does not change what the house will sell for in the future, nor does it effect the gain or loss you may realize for income tax purposes.

Answer 3

It depends on your jurisdiction. Some states charge a different property tax rate than the market value. You should call the Tax Assessors Office and ask them to explain the bill. It could mean nothing or it could mean that you will take a loss if you sell the property now. But don't panic, just call the Assessor or who ever determines you tax rate and ask what they mean by those terms. There should be a phone on the tax bill. In some states the explanation is required to be printed on the bill but that must not be the case since you are asking.

Answer 4

I guess you are talking about the appraisal made for the lender at the time of purchase, not an assessment. If so, there is no connection to the property tax