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Municipal Property Taxes


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#301 Tom Braybrook

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Posted 09 June 2022 - 08:55 AM

If the mill rate for Victoria property taxes decreased by 12 % and my assessed property value increased by 22% from last year.....didn't the city of Victoria just receive an increase of 10% +- in dollars? Imagine the impact on total revenue across the city.

 

What am I missing?

while your assessment was above average and taxes went up for you, there will be a balancing offset of folks whose assessment was below average and their taxes went down

 

so the net for the city shoukd be the same (the same being whatever  %  increase they budgeted for, that is!)


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#302 spanky123

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Posted 10 June 2022 - 09:48 AM

If the mill rate for Victoria property taxes decreased by 12 % and my assessed property value increased by 22% from last year.....didn't the city of Victoria just receive an increase of 10% +- in dollars? Imagine the impact on total revenue across the city.

 

What am I missing?

 

The average residential property value increase was 16% so the mill rate was based on that and the desired 3.9% overall tax increase. If your property increased in value by 22% then your taxes would have gone up more than 3.9%. 



#303 DavidC

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Posted 11 June 2022 - 05:35 PM

The average residential property value increase was 16% so the mill rate was based on that and the desired 3.9% overall tax increase. If your property increased in value by 22% then your taxes would have gone up more than 3.9%. 

Seems to make sense…

Assessment up 5% and property tax down 8%.

Not all roses though, strata fees up 15%.  


Edited by DavidC, 11 June 2022 - 05:35 PM.


#304 Victoria Watcher

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Posted 08 July 2022 - 03:37 AM

I learned this today about California property taxes:

 

 

 

 

Proposition 13 (officially named the People's Initiative to Limit Property Taxation) is an amendment of the Constitution of California enacted during 1978, by means of the initiative process. The initiative was approved by California voters on June 6, 1978. It was upheld as constitutional by the United States Supreme Court in the case of Nordlinger v. Hahn505 U.S. 1 (1992). Proposition 13 is embodied in Article XIII A of the Constitution of the State of California.[1]

 

The most significant portion of the act is the first paragraph, which limits the tax rate for real estate:

 

Section 1. (a) The maximum amount of any ad valorem tax on real property shall not exceed one percent (1%) of the full cash value of such property. The one percent (1%) tax to be collected by the counties and apportioned according to law to the districts within the counties.

 

The proposition decreased property taxes by assessing values at their 1976 value and restricted annual increases of assessed value to an inflation factor, not to exceed 2% per year. It prohibits reassessment of a new base year value except in cases of (a) change in ownership, or (b) completion of new construction. These rules apply equally to all real estate, residential and commercial—whether owned by individuals or corporations.

 

The other significant portion of the initiative is that it requires a two-thirds majority in both legislative houses for future increases of any state tax rates or amounts of revenue collected, including income tax rates. It also requires a two-thirds vote majority in local elections for local governments wishing to increase special taxes. (A "special tax" is a tax devoted specifically to a purpose: e.g. homelessness or road repair; money that does not go into a general fund.)

 

Proposition 13 has been described as California's most famous and influential ballot measure;[2] it received enormous publicity throughout the United States.[3] Passage of the initiative presaged a "taxpayer revolt" throughout the country that is sometimes thought to have contributed to the election of Ronald Reagan to the presidency during 1980. Of 30 anti-tax ballot measures that year, 13 passed.[4]

A large contributor to Proposition 13 was the sentiment that older Californians should not be priced out of their homes through high taxes.[5] The proposition has been called the "third rail" (meaning "untouchable subject") of California politics, and it is not popular politically for lawmakers to attempt to change it.

 

 

 

 

https://en.wikipedia..._Proposition_13

 

 

 

It's essentially a cap on property tax increases to no more than 2% per year and no reassessment of property value unless it sells.  Bold section is the jist of it.


Edited by Victoria Watcher, 08 July 2022 - 03:40 AM.


#305 Mike K.

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Posted 08 July 2022 - 03:47 AM

So the new buyer presumably will pay far more property tax than the unsold neighbouring properties, after the land is reassessed at the sold price.

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#306 Victoria Watcher

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Posted 08 July 2022 - 04:06 AM

So the new buyer presumably will pay far more property tax than the unsold neighbouring properties, after the land is reassessed at the sold price.

 

Yes.  Apparently it is keeping some commercial entities, like golf courses in LA, going.



#307 Tom Braybrook

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Posted 08 July 2022 - 08:27 AM

my sister-in-law in her multi-million Venice house pays $2k in property tax

 

my daughter in her $700k  condo pays over $8k



#308 Mike K.

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Posted 08 July 2022 - 02:43 PM

California really is a messed up place.

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#309 Ismo07

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Posted 08 July 2022 - 02:50 PM

California really is a messed up place.

 

Yeah that is not a good way to go about property taxes...  



#310 Matt R.

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Posted 08 July 2022 - 04:32 PM

Where is it that they are paying $8k on a $700k condo?

#311 LJ

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Posted 08 July 2022 - 07:16 PM

A lot of folks who want to move out of California stay until the bitter end just because of that clause.

They don't move until they can go to a lower tax state after retirement.


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#312 LJ

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Posted 08 July 2022 - 07:18 PM

Where is it that they are paying $8k on a $700k condo?

Quite a few places in the US.

 

Friends of ours live in a Chicago suburb, they pay $13k on a $900k home.


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#313 Redd42

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Posted 08 July 2022 - 07:52 PM

Aren't Canadians supposed to have the higher taxes?  :)



#314 phx

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Posted 08 July 2022 - 08:22 PM

 

Friends of ours live in a Chicago suburb, they pay $13k on a $900k home.

 

$900k could be a huge mansion in some areas.



#315 Tom Braybrook

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Posted 08 July 2022 - 09:39 PM

Where is it that they are paying $8k on a $700k condo?

santa monica

 

LA tax rate is 1.174279 % - that is the rate my daughter pays - she bought her condo 3+ years ago

 

my sister in law bought her place in Venice 30 years ago, pays a much lower rate

 

some say this system forces people to leave their current community if they sell because they can't afford to pay the taxes on their new house


Edited by tommy, 08 July 2022 - 09:49 PM.

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#316 LJ

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Posted 09 July 2022 - 07:48 PM

$900k could be a huge mansion in some areas.

That's not really the point, they pay a shitload of taxes on a property valued at $900k.


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#317 Nparker

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Posted 16 July 2022 - 07:46 PM

LJ, on 16 Jul 2022 - 8:11 PM, said

 

Why would you be paying property taxes? Defer man, defer.

Property taxes were built into my mortgage payment and I have only just reached the minimum age to qualify for deferral. Now that I no longer have a mortgage, I'll have to decide how I want to deal with paying property taxes going forward. Personally, I don't like owing money, and while I often disagree with how the CoV spends my tax dollars, I also feel a certain obligation to pay my share.


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#318 Victoria Watcher

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Posted 16 July 2022 - 10:14 PM

Property taxes were built into my mortgage payment and I have only just reached the minimum age to qualify for deferral. Now that I no longer have a mortgage, I'll have to decide how I want to deal with paying property taxes going forward. Personally, I don't like owing money, and while I often disagree with how the CoV spends my tax dollars, I also feel a certain obligation to pay my share.

 

Deferring does not deprive your local government of your full tax amount.  The province pays them your full amount.

 

The simple interest rate this year is only 0.45%.

 

https://www2.gov.bc....t-interest-fees

 

You'd be foolish not to defer.

 

You'd be much better off deferring, then putting the tax amount into a GIC.    

 

Let's say your tax bill is $4,000.

 

YEAR #1:

 

$4,000 at the deferral rate will cost you $18 in interest, plus the $60 first-year fee.  At the end of year #1, you will owe $4,078.

Now, instead put your $4,000 into a one-year fixed GIC at 4.32%.  At the end of year #1, you will have $4,172.

 

YEAR #2:

 

$4,000 at the deferral rate will cost you another $36 in interest, plus the $10 renewal fee.  At the end of year #2, you will owe $8,106.

Now, instead keep your $4,000 into a one-year fixed GIC at 4.32%.  At the end of year #2, you will have $8,344 (more if you left the entire $4,172 in, to compound in year #2).

 

Rates will of course change, but the simple interest rate charged by the province is always at least 2% below the best prime rate, so you will always be ahead with the above plan.


Edited by Victoria Watcher, 16 July 2022 - 10:29 PM.


#319 Nparker

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Posted 16 July 2022 - 10:28 PM

As I said I don't like having debt. And last I checked I pay provincial taxes so it's still coming out of my pocket.

I imagine that as long as I CAN afford to pay my property taxes I will.

#320 Nparker

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Posted 16 July 2022 - 10:29 PM

And why should I game the system just because I can?

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