Quote:
Originally Posted by burn_this_city
Im glad to be renting.. I wouldnt be able to afford this condo after looking at its assesement..
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Keep in mind what assesment is- the way the city determines how much tax a person owes in relation to everybody else.
Seeing as this comes up every tax thread, I'm going to explain it again. I'm also going to simplify things so my numbers won't be accurate; more a reflection of how the mechanics work.
BTC and I each own property. We have idendical houses worth $325,000 each. So we each pay $2000 per year in taxes. I do a bunch of renovations to my house, so the following year my house is valued at $400k. BTC's house has stayed the same, and with the current market has gone down to $300k. So for the next year, BTC's taxes stay at $2000, and mine go up to $2660.
Now, let's say we are in an upswing market and the values go up. Let's say also that neither of us does any renos. Now our houses are worth $450k, but our taxes stay the same because relative to everybody else, our house prices went up at the same rate.