Property Taxes - Polk County

keepngoal

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Not apples to apples but seeing that study reminded me a client recently sold her condo in Hawaii. On top of realtor commission will be forking out over 62,000 of sales tax to the state. Condo sold in the 800K range. Outrageous!!
Did the client not know this?
 
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keepngoal

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Yes. Fortunately there was substantial appreciation.
Then no complaints. I have yet to purchase a car, house, or other item without accepting nor understanding the net.
 

2speedy1

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Another thing to remember is that your house is roughly 40% municipal taxes. You have water, sewer, all paved streets, storm sewer and other amenities (maybe a swimming pool, golf course, Rec center) that was agreed to via a public measure. So that increases your house taxes plenty also.
Yet you still paying for all those things separately and monthly. You also pay special assessments when they build those things. As I have paid special assessments for street projects, sewer and water lines in the street etc.

Not only that taxes are also extremely high for acreages outside of city limits that have none of the services you mention.

Its one thing to have them for emergency services and schools but at some point the rest is gouging.
 

BCClone

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Not exactly sure.
Yet you still paying for all those things separately and monthly. You also pay special assessments when they build those things. As I have paid special assessments for street projects, sewer and water lines in the street etc.

Not only that taxes are also extremely high for acreages outside of city limits that have none of the services you mention.

It’s one thing to have them for emergency services and schools but at some point the rest is gouging.

Couple reasons I have noticed why you pay for them separately along with them in the general fund and special assessments. First thing is city watwr and sewer is highly inefficient. A well for a single house or even a block of homes, seems kind of expensive upfront but honestly isn’t in comparison. You can go shallow and find a sand point and be fine. A city has to go deep enough to hit a solid water pocket and then have much higher volume. You now have inspections and regulations also. Add in that you are installing water lines that are much bigger than a single residence and usually longer per home distances.

Second aspect is that most city councils are filled by individuals that are not the best business people. So a city puts in a water system and they set water rates to cover costs but not to start to sock away money for that new system in 50 years. 50 years come and now they have to replace the system and you get to pay for the new system on top of your regular water. City councils only plan for a year or two, not for the future generally so when major projects happen you see major spikes. The local town had started building a reserve but when that mayor stepped down the new one felt it was better used elsewhere and when the new tower was needed, there was nothing. Now a new sewer project will also be needed and there are no reserves for that. Using typical ratios for water/sewer and now knowing what are water bill is, our city bill (water, garbage, sewer, recycling) will be roughly $400 for a family of 3 when it is all completed. That is highly inefficient compared to a well and septic system.
 

Big_Sill

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Assessment Up 31%, equates to actual property tax $ paid being up 10.5%.
 
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ClonesFTW

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The WalletHub report, released March 28, assessed the “tax burden,” or the proportion of total personal income residents pay toward state and local taxes. The report compared the states’ sales and excise taxes, property taxes and individual income taxes as a share of the states’ total personal income. The report pulled data from the Tax Policy Center.

Minnesota ranked eighth (9.41% overall tax burden), and Iowa ranked 10th (9.15% overall tax burden). Minnesota has the sixth-highest individual income tax burden (3.11%). Iowa has the 14th highest property tax burden (3.49%) and the 16th highest individual income tax burden (2.41%).
Interesting article, thanks for posting.
 

shadow

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When will we know what this means for what we will actually pay in property taxes? Next few weeks right? I have not gotten my letter yet.
 

Mr.G.Spot

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I believe the state has been on a plan to reduce the burden of the state's portion of taxes on commercial properties which the state has been very high. The money has to come from somewhere so the burden appears to be shifting.

The key thing to worry about and analyze is the local millage rate. It is possible that assessed values are going up while the millage rate goes down and the tax bill could be neutral - unlikely, but possible.

Worry about millage rates, not assessed value.
 
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Althetuna

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"Our agreement" implies some sort of consent on our part. I don't remember giving that.
If a poll was taken by members in this thread asking if a reduction in taxes could be achieved by eliminating all the mechanisms protecting an individual's property rights, I have a pretty good idea what those results would look like.

Nothing is free; the protection of property rights; the at-will hot shower we all took this morning; the protection from violence.

There's always going to be disagreement on the margins regarding taxes but your take has always been a radical one.
 
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Clonehomer

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Assessment Up 31%, equates to actual property tax $ paid being up 10.5%.

Check your math on that. Since the taxes are calculated using percentage rates, a percentage of assessed value does not get multiplied by that rollback and municipal rate. Only if you are using actual values does that get multiplied by those. So if the rollback and municipal tax rates stay the same, 30% increase in value = 30% increase in taxes. While a 30K increase in assessed value only means a 16K increase in taxable value.

Edit: But, this is all assuming that the rates remain the same. Logically, the city's budget hasn't gone up 30% in a year (I hope), so that rate will likely drop to balance out the increase in valuations across the city. As the cost of everything has gone up, I'd expect that to not be neutral, but I also wouldn't expect a 30% increase. What you'll see is politicians touting a tax rate reduction while your tax bill goes up.
 

brianhos

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"Our agreement" implies some sort of consent on our part. I don't remember giving that.

You did when you agreed to buy the house. No one forced you to do it. Just like the HOA that all my neighbors complain about. You signed the doc and knew those rules were an agreement to live in this neighborhood.