for years I blamed the bank for bullying poor people, Now that i'm a home owner I realized is not the bank but the government that is sucking every penny of your hard work money, property tax has no limits!!
On the flip side of that though, if you increase the value of your property by renovating it, you can get the bank to re-appraise and re-finance your property and put that extra money into some kind of investment that will make you more money than the interest cost of the mortgage.
Illegal extortion that’s why. Only 25% of land in USA is owned by govt. that is all they can tax. Ask them to prove territorial jurisdiction if they send you a tax bill.
I know im randomly asking but does someone know a trick to get back into an instagram account..? I stupidly forgot the password. I love any assistance you can offer me!
Phil, Did you know that property tax only penalizes the disabled, people who lost their jobs, people who have extreme medical bills, farmers who lost a crop. Property tax is against people who had bad luck in their lives.
Do you not know what your taxes are paying for? Try police and fire services, road maintenance, parks, sewers, and many many other things, like garbage pick up etc etc/ are you totally stupid???
Nancy thats what fucking income tax is used for. Its complete fucking BS. Are you stupid, do you pay taxes? 15mill home and i got to pay a fucking 198,000. While my neighbors pay 5k a year. Should be even since my house doesnt cost more to run. I have solar and only take water from the county. ITs total fucking BS.
Eric Heart. One day when people cant afford to pay. The town will go broke. Its a business. If they cut taxes alot this would be a better raise then social security
Just think, we are forced to pay the property tax and if we don't, they will take everything that we own either willfully, in handcuffs or in a box. That's the exact definition of extortion.
The original draft of the Declaration of Independence said "the right to life, liberty and the pursuit of property". Excess property taxes is a governmental threat to private property
This video is 3 years old, and it's true that things may be different in towns and counties across the country, I can only comment as Chairman of my towns board of assessment review for 12+ years, there are so many inaccuracies and misinformation in this video it would take me far too long to address them. And nobody would bother reading it. But here's a teaser. Assessed value does not mean or have to match market value.
Property taxes and estate taxes are the most unethical and egregious abuse of power ever conceived! "But, muh skoolz!" They can find other ways to pay for schools, ways that are not criminal.
They do the same kind of spending in the military. We called it "use it or lose it." It's a shame but it happens through through out the whole government.
we pay $6,000/year in property taxes for our undevelopable 40 rural acres in idaho. the property only has enough room for one 100 year old log house, the rest of the property is a mountainside.
thank you been paying too high in prop tax for over three years and going to dispute it. bought a 2 1 home when comparables are half of what i pay for wow God Bless Sir
Phil, Have you seen what is happening to property taxes in the Salt Point area of NY? My niece rents a farm where the taxes jumped from $6,000 to $15,000 in the years 2013 to 2014! This is even happening to property's that went DOWN in value in Duchess County NY. ! What can home owners do about this craziness? She wants to buy a farm in that area put I don't know how she will be able to handle such tax increases on what ever property they get.
+loppy4100 The Constituion says in plain english WE THE PEOPLE .........but in ever thing else they refer us as citizens .........its ALL FOR A REASON.
its happening in Rochester NY also..they say my dad house in the hood is worth 320k...sumetimes I wonder if just setting it on fire would be better..lol..the house isn't even worth 50k..I don't understand...seems really fishy..isn't there sumone that can help us please..u pay ur house off and still pay the same amount in property taxes..its all going to property tax
Kuhn lao, this is an election year so it would be the BEST time to start talking to politicians. Form a group through your church or other organization, then make it a point to get on the news in protest of what is happening directly addressing any politician who will listen. It is your best bet for getting attention to this problem.
Phil, you did not mention the millage rate, and what happens when the politicians change the rate to make up for the loss in assessed value that occurred recently in the market.
So in your area, they dropped the tax appraisals and then raised the tax rates? That is pretty rare because it can cause a huge uproar from the general public. Thanks for sharing.
Property Tax for Seniors that have low Social Security income is VERY unfair. They state a capped value, but that goes up every year so how is it capped? Why is property tax should never be on the value but the purchase price. It is like paying taxes on thin air when you are in your forever renting home. I am being run out of my paid off home due to the increase every year of Property Tax and my low income.
Hi Phil, I had heard many times from my teachers and people I looked up to that a thorough understanding of a subject is truly liberating. After trying to read materials online reg. property taxes and the concept of appraisals and getting very frustrated of not getting the concept, this video just made me feel mushy when such a complex concept was explained so well and with such clarity and simple English with different lenses applied (financial, political, social). Thanks buddy !
What if your property is worth far less than your comparables? Like, you know, literal graffiti on the walls, non-neutral paint, ruined carpets, etc.? How do you get it taxed at the price you bought it for?
How I wish found you earlier in 2007 than those "BIGGER GURUS" Phil. I have spent a little more than $100-k in my real estate education already but your videos teach a lot better and simpler than them. I am learning tons of real estate investing knowledge in your videos here. I am so very thankful to you for giving them free of charge.
+robert ballesteros Take this course courses.freedommentor.com And also grab my new book "Real Estate Investing Gone Bad" www.amazon.com/Real-Estate-Investing-Gone-Bad-ebook/dp/B019CXZP7I
Start with the definitions for that title. The definition for person is a corporation, trust, association, et.al. In order for a property in any of the 50 states to be taxable, it has to have a situs (place of a crime or business) attached to it, in other words it has to be producing a profit. Through a return required by the Florida Department of Revenue for businesses, that is then sent to the property appraiser to notify of a privilege being conducted in the state. The homestead exemption is an application to exclude your “place of shelter” and exempt it from the portion of your property that is exercising a privilege, to operate in commerce in the state. Regardless of what the PA classifies your home as, it is not taxable and it is the intent of the Florida Legislature to be in compliance with the Constitution of the United States. Taxes are handled at the local level. It is the intent of the Florida Legislature to be in compliance with the US Constitution. Go ask your PA to show you what statute shows you are a taxpayer and the proof they have that shows you are operating in commerce. Bet they send you to talk to the county attorney.
Not true, CA tacks on a bunch of below the line items in addition to the prop 1% fee. My tax bill in Ventura county had 6 additonal items I had to pay for each year and they just keep adding more items without voter approval. I left CA and am not going back ever...
We just built a brand new house on 5 acres. The tax assessor "let herself in" our home. It wasn't completely finished but she still trespassed. Our taxes are like $700 a month. Ridiculous.
Property rights are the philosophical basis guiding the formation of our laws. Property taxation violates the principles out of which all our individual protections are derived. Property tax is our existence fee. Our life tax. Our permission to live and breath. It is as anti-American as communism. Property tax is the prime cause of nearly all homelessness and unemployment. Property tax is the oxymoron which erodes our Republic. Destroys the integrity of our government and renders us all the property of the state. ..
Phil, I did go through lowering my property taxes back at the end of 2009-2010. It was quite a process here in Colorado but eventually it did come down. I believe the county has their own appraisal system and they did take their time but like most lending institutions (i.e. getting rid of your PMI or lowering your interest rate) they won't share with the home owners what you need to do to lower your property taxes, its all up to the home owners to become savvy home owners. Love your videos and thinking about becoming a REI.
Ask whoever sends you a tax bill, for proof of territorial jurisdiction. Govt can only tax what they own or create. They must prove they own your land, unless of course , you opted in to their system by forming a contract with them. Check out the dispersement breakdown of your tax bill, you might find the largest portion of property tax goes to medicaid. Also, gas tax is meant to pay for anything to do with roads. Lottery is meant to pay for schools.
Sue as mach as humanly possible find the most crooked inside tracked lawyer you can find they're typically old and have a history of miraculous verdicts. Get them & sue sue sue. Property taxes are preposterous, and made up. Get them lowered by any all legal means necessary.
One red cent is too much! Property taxes are unlawful on property used as shelter. Property must have a business (situs) associated with your home. The question is not “ why are my taxes so high?” The question should be by what authority are you imposing an excise tax, a tax on a privilege on my shelter, a substantive right. Start you research. If you are not operating in commerce, the assessor is placing a value on a right and taxing you for it.
Yea u dispute ur tax appraisal and guess what they show up and say oh look at that shed in ur back yard or oh u finished ur basement and now it backfires and goes up !! Be careful when you do this !!
I love the fact that you implement narratives as it engages me and other audiences, it also gives us an understanding on how what your saying applies out there in the environment of real estate, some day I might meet you to thank you in person for your genuine intent to educate others. In the mean time I'll keep watching more of the videos to become better acquainted with the implications of buying and selling properties. Have a good day Phil Pustejovsky.
I had issues with my mortgage company(Chase) not paying the property taxes. And the only way I found out was when I got a letter from the city saying that the property was going up for tax auction and that I could lose my home. Needless to say it was the city's fault for not forwarding the estimated taxes to the mortgage company and the mortgage company not paying them in a timely manner. The mortgage company added additional fees to my monthly mortgage to pay back the funds they payed out of the tax escrow account to pay for their mistakes, & which I could barley afford because adding on another 300 to mortgage payment.. And not only did they do that once but during the course of 6 years but they did that 3 times.. So ever since then I don't trust having the bank take out taxes for me, I would rather set money aside each month and take care of the taxes myself. This is only one story of my experiences of owning a home, unfortunately I have many more stories and had enough to make me not ever want to buy another home. But here I am again after learning bad lessons and trying to own another home but I am going to better educate myself. and Trying to learn as much as I can this time around. I thank you for your great educational videos!
my brother put a home under contract for 5k.. but the taxes on the back end of the home is 16k and hes trying to whole sale it. the comps are 66k.. and its a total gut job.... am i wrong and if so, how can he structure this...
+jambinni Sounds like it will be tough to find anyone willing to pay more than $21,000 for a house that may need $30,000+ in renovations to be worth in the mid $60s. That's a good lesson for your brother to run a title search before he buys a property.
Really good video - sums up everything I try to tell the appraiser at the local office of our property tax authority. Yet - they are unwilling to budge. I had an appraisal 360% above purchase price for the same year and they will not budge because they have been told by the provincial government to raise the funds no matter what - in light of collapsing government revenues in a stalled Canadian economy. Leveraging social media and crowd funding to launch a class action lawsuit against the provincial property tax authority is our next step.
If you want to challenge your assessment on your home and you haven't purchased it within the last 3 year years you'll want to get the data from the county and run a regression analysis off their data points (sq ft is the easiest). Many times they take houses that are not analogous to your home. For me I received an R square of 52%. For whatever reason my county used only 5 data points and one of the houses in the data set they used had 1 extra bathroom and a basement. In statistics the more data points the better, however you want to conduct your analysis the same way the county does, so if they use 5 or 3 data points you should do the same. The previous county auditor was fired for purposefully making people's taxes higher than they should have been. The analysis I conducted gave me an R squared of 82%. I forgot to normalize the data, and may have gotten a better R squared, but they county couldn't refute my analysis. You can do the same with insurance claims as well.
This sounds like some of the Chicago neighborhoods. Property Tax means that you only rent your property, Americans have lost their right to home ownership when the Property Tax Laws were made.
Hello Phil, I want to get my parents condo reassessed in Florida... I think it's value is $100k too high... is there however a risk the tax assessor might actually reassess upwards and their tax bill increases? Is there any protection against that as that would be awful
The towns get rich every year up and up. One day people can't afford this being retired. Your house is worth 1/2 as much as it was 10 years ago but taxes are doubled. Why pays this is your land. ? Time to make your house look like trash car engines couches. Trash in the yard. Make it look poor. And this will assess for Less
I live in Massachusetts I'm behind in property taxes my town will not let me pay on the principal so I'm forced to pay interest on all current payments which are calculated daily at 39 percent can they refuse principal payments?????
have a qs. If your late on your real estate taxes interest of 18% starts coumponding daily, is the city allowed to charge interest on top of interest or just the outstanding principle amount and what happens if you just pay off the principle amount and not the interest? does the remaining interest still accrue interest does it continue to compound daily? what is the law?
My understanding is that that interest is calculated on just the outstanding principal balance; not interest on top of interest. But you will need to investigate it for your specific county. The laws vary from state to state and even county to county
Dear Phil thank you so much for your reply! but my qs still remains what is the real property tax law/code regarding finance department collecting 18% compounding interest ? where can I find this info I searched the web and anything else I could look at but fund nothing except thats what the city does. please help direct me to where I can find real answers.
Call the County Level Property Tax Collector. They are the governing body that levies property taxes as well as collects them as well as handles tax liens.
I'm thinking I got a bad deal on a condo townhouse. I paid 455k and when I got the appraisal for the for taxes it came in at 284k. I'm lost for words. My closing is in September; however, properties of similar nature is been sold for 437k in the area. what do you suggest I do? If i pull out of the deal now i will lose my deposit. What should I do?
What a blessing! Your property sounds like it is worth almost double what the taxing authority thinks it's worth, so your tax bill is much lower. We all wish we could be so fortunate :)
Phil Pustejovsky , I watched this video, but I am not a real estate agent. I received my appraised value on my house and I would like to adjust the value. I am looking for physical evidence to take to the interview. Any tips?
Zulema Alvarez look for the most recent comparable sales( similar size sq footage exc..) within 1-2miles of your home. This is how appraisers typically determine property value
Yes, philadelphia is for the taking right now. Cheap houses but the taxes are getting out of control. Thanks for this video because they killed me in transfer taxes and property taxes they assess the taxes on an abandoned house at 90k......in the "hood"
