Housing Cost Increase and Taxes

[John6185]

Housing has gone up to unprecedented levels and few have given thought to the consumer. The taxes of the home you currently own is worth more and therefore, your taxes will increase. Same as a gallon of gasoline, state and federal taxes will go up with the increase in cost and the states and feds will reap the benefits. And we take the hit. Everything is going up and the associated taxes, groceries, fast food, I've never seen it this bad that I can remember, and this is just the start of Joe's reign.

 

[cowadle]

most sales taxes are figured on the cost. so in reality it's the currency that is taxed or the transaction. you are absolutely correct about property taxes on the increase. especially since the oklahoma voter thought it was a good idea to allow them to increase taxes without our vote to do so.

 

[SlugSlinger]

Luckily, there are limits to the allowable tax increases. This helps with temporary or artificial changes in property values. However, you must be diligent when property values drop to take advantage of the laws. I filed an appeal a couple years ago on my property value. I had my taxable market value decreased by $40,000 based on a couple houses that sold below the fair market value in my neighborhood.

The property value changes are based on arm's length transactions on comparable homes sold in your area.

There is an assessed market value and an assessed taxable market value. Market value can show unlimited changes. Taxable market value can only increase based on 3% or 5% as shown below.

If you have a homestead exemption, there is a 3% limit of an increase to the assessed value. Everyone should have a homestead exemption. It lowers the assessed value of your primary home by $1,000 and you benefit from the 3% limit.

If you don't have a homestead exemption, the limit for increases is 5%.

"Despite any provision to the contrary, on and after January 1, 2013, the fair cash value of any parcel of locally assessed real property shall not increase by more than 5% in any taxable year; provided, if such property qualified for a homestead exemption or is classified as agricultural land, any increase to the fair cash value of such locally assessed real property in a taxable year shall be limited to 3%."

 

[SlugSlinger]

This is the letter I sent in to make the successful appeal of an excessive market valuation. I was asking for a $70,000 reduction in market value and received a 40,000 reduction.

Don't be afraid to make an appeal, just have your ducks in a row.

Ms. xxxxx,

Per the instruction listed in the language within the County Assessor Notice of Increase in Valuation I received, I would like a appeal the values on my property. I am providing the attached information for a telephonic hearing as instructed.

My assessed Market Value is ~$30.52 per total area (assumed this is square foot) higher than the most recent comparable arm’s length sales transaction in my neighborhood that completed in 2018. And in excess of $25 per area higher than a less recent arm’s length transaction that completed in 2016 (this property has a pool and other amenities my property does not).

The best estimate of market value is using current arm’s length transactions. Using 2 recent arm’s length transactions, my property’s assessed values are substantially higher than true market value.

Attached are form 974 (file names xxxx 974), “Assessment Detail” documents from the County Assessor’s website and a document (xxxx Comps) comparing my property to recent arm’s length sales of properties in my neighborhood using current values of additional properties from the Rogers County Assessor’s website.


Thank you for your time,

 

[tRidiot]

My stupid homeowner's taxes have gone up every year, doubled the year after I bought my house. I now pay way more than any house around me - and we have faaaaaaaar from the nicest house in the neighborhood. Most homes in my neighborhood haven't had a significant tax increase in many years - over a decade. Mine continues to go up every year.

I guess I somehow pissed off someone in the tax assessor's office by... I dunno, paying my taxes?

My buddy just sold his house for over 100k more than I paid for mine - I currently pay nearly the same taxes as he does. I don't understand it. Of course, this is all on Zillow I am seeing the taxes on each house (public record), and my house 'supposedly' is the 2nd most valued in the neighborhood - but that is 100% based on tax valuation. The only house more valued than mine is 1800 sq feet larger (mine is just under 2200, I think). There's no way in hell. Mine probably isn't in the top 10, maybe 20 in a 2 block radius.

But I pay the taxes like it is.

 

[THAT Gurl]

My stupid homeowner's taxes have gone up every year, doubled the year after I bought my house. I now pay way more than any house around me - and we have faaaaaaaar from the nicest house in the neighborhood. Most homes in my neighborhood haven't had a significant tax increase in many years - over a decade. Mine continues to go up every year.

I guess I somehow pissed off someone in the tax assessor's office by... I dunno, paying my taxes?

My buddy just sold his house for over 100k more than I paid for mine - I currently pay nearly the same taxes as he does. I don't understand it. Of course, this is all on Zillow I am seeing the taxes on each house (public record), and my house 'supposedly' is the 2nd most valued in the neighborhood - but that is 100% based on tax valuation. The only house more valued than mine is 1800 sq feet larger (mine is just under 2200, I think). There's no way in hell. Mine probably isn't in the top 10, maybe 20 in a 2 block radius.

But I pay the taxes like it is.

This happened to Grumpy's aunt and uncle when land all around them was developed by a builder. Houses with crazy values drove their property values through the roof. According to his aunt. And we heard about it every time we saw them, until she passed away. I don't think they ever filed a successful appeal. (Bad news, I know ...)

I feel for you ... My property taxes have skyrocketed since OKC developed Lake Overholser. But then so has my property values, so I really can't complain ...

 

[-Pjackso]

Similar to SlugSlinger,
We also appealed our valuation.

When we bought our house, it was waaaaay over-valued for property taxes.
We hired an independent appraiser to inspect our house and provided us a written report with estimated market value, base on (our house current-conditions) and recent comps. We submitted our appeal along with the appraiser's report.
Given the facts, our property taxes were lowered.

If memory serves me correctly, the independent appraiser was only about $200 (years ago).
Well worth the costs.

 

[SlugSlinger]

My stupid homeowner's taxes have gone up every year, doubled the year after I bought my house. I now pay way more than any house around me - and we have faaaaaaaar from the nicest house in the neighborhood. Most homes in my neighborhood haven't had a significant tax increase in many years - over a decade. Mine continues to go up every year.

I guess I somehow pissed off someone in the tax assessor's office by... I dunno, paying my taxes?

My buddy just sold his house for over 100k more than I paid for mine - I currently pay nearly the same taxes as he does. I don't understand it. Of course, this is all on Zillow I am seeing the taxes on each house (public record), and my house 'supposedly' is the 2nd most valued in the neighborhood - but that is 100% based on tax valuation. The only house more valued than mine is 1800 sq feet larger (mine is just under 2200, I think). There's no way in hell. Mine probably isn't in the top 10, maybe 20 in a 2 block radius.

But I pay the taxes like it is.

One way the ASSessor gets around the tax increase limit is to increase based on improvements. Kind of makes one not want to make improvements.

Anything they can see from the outside, they will tax.

 

[-Pjackso]

One way the ASSessor gets around the tax increase limit is to increase based on improvements. Kind of makes one not want to make improvements.
Anything they can see from the outside, they will tax.

Agreed. This is a good point.

I talked with our assessor - and they said any MAJOR improvement can qualify for re-assessment.
It is a bit subjective, so talk with the assessor. Adding a room, adding a second story bedroom, a BIG new shop, etc - will most likely give them an excuse to re-assess. (essentially adding square footage)

With that said - we had our house resided/new windows/ new doors - and that was NOT considered a "major improvement".
Do your home improvements in small increments over time, and it's more likely to stay under the radar.

 

[tRidiot]

No improvements in our house... other than making it look nicer by cleaning up the yard, painting the fence and removing a couple of trees. Don't get me wrong, we've done a lot of work on our house on the inside, trim, paint, etc., but nothing external that the assessor would know anything about. Other than paint and maintenance - no expansions, new garage or carports, nothing.