Anyone ever hear of property tax evaluation never changing for 20 yrs?

[louisvillekid]

Had a family dinner Sunday. Afterwards, somehow things went to topics about home prices.
My dad then said that the house we grew up in, that him and mom purchased in 72', that the property tax bill never went up till year before they sold it(that would be 91', they sold in 92') and moved to new home.

My dad tried(or did) say that the whole time they lived there that the yearly property tax bill was based on the original purchase price of the home and not the estimated value. He said that Ky never changed it till we got a new governor in 91' that made the change.

Me and my brother both agreed that it doesn't sound plausible. Plus we both told him Ky didn't have same governors for 20 years straight.

We pointed out that there was no way the county could pay for yearly inflation costs, and all the growth of schools,police force, fire dept, local government, wages, etc etc.
He was adamant that from 72 till 91 his yearly property tax bill was based on the 15k him and my mom originally bought the home for.

We even tried to be clear by asking if he meant that the "ky state" part of the "rate" for however many cents per $100 of value "never" changed, but maybe the other lines on the tax bill might of changed for the county and local stuff, but Ky somehow might of stayed same all those years. He said that the percentage rates might of changed slightly over the years for all the lines, but that the assessed value of the home never changed.

Again me and brother said we couldn't understand how the county could pay bills and for new stuff if everyone's tax bills were based on the original price they bought the home for.

Anyone live in a county or state that ever heard of such a thing?

[franklee168]

Prop 13 here in San Francisco made the property tax pretty much the same. My folks bought in 1975 and the tax has gone up less than 1k in all these years. If not for Prop 13, their tax would be 35k a year.

[dbartinbwgc]

Maybe they were grandfathered in and once title changes hands after a certain date any new owners
would pay the new way they calculate the tax.

[louisvillekid]

Prop 13 here in San Francisco made the property tax pretty much the same. My folks bought in 1975 and the tax has gone up less than 1k in all these years. If not for Prop 13, their tax would be 35k a year.

interesting. maybe me and my brother are wrong. We just know since we been adults that property tax is based on assessed value of home. Now i don't know how often the assessment takes place, but i would assume more than every 19-20 years.

But yeah in SF i can see that happening for all the people that have owned their homes for many years. All i read is how ridiculous SF real estate has become. Actually been hearing it for at least 10 yrs.

[franklee168]

interesting. maybe me and my brother are wrong. We just know since we been adults that property tax is based on assessed value of home. Now i don't know how often the assessment takes place, but i would assume more than every 19-20 years.

But yeah in SF i can see that happening for all the people that have owned there homes for many years. All i read is how ridiculous SF real estate has become. Actually been hearing it for at least 10 yrs.

Spot on. That 52k house back in the 70's is 3 mill plus now.

[louisvillekid]

Maybe they were grandfathered in and once title changes hands after a certain date any new owners
would pay the new way they calculate the tax.

Yeh i'm guessing that might be what might have happened. It aint like that now. I've never owned, always rented. But my parents, my brother and one my sisters own.
My dad said the current house they have, they bought in 92 for about $118,000 and now pay property taxes based on an assessed value of $250,000 and he says he's be lucky maybe get $225,000, plus they have pay a property tax bill to the neighborhood.

My brother said his current home, he been there about ten yrs, he bought it for around $180,000 and his assessed value property tax is like $208,000.

Not sure on my sister, she wasn't at the dinner. She had a house in Tenn for about 10 yrs and now lives in like a $300,000 home in ohio.

[louisvillekid]

Spot on. That 52k house back in the 70's is 3 mill plus now.

Wozza!

[MinnesotaFats]

The only way that's possible is with a State cap, an adjusted local mill rate or significant decline is valued or a mineral rights concession

[TheMoneyShot]

It's typically based on the purchase price... however... people got homes at such ridiculous low prices in 2007-2008.... it was hard for cities to calculate the "TRUE" assessed value. Honestly... if you purchased a home just a few months after the crisis... you should be way ahead of the game... for many years to come.

[JIBBBY]

That shiiit ever happens in Cali I'll be selling all my properties at a loss and I'm gone.. If a property tax adjustment happens for old school owners that would rock the State.. Everyone would be selling that bought years ago..

I hope that never happens. That would make move out of State for sure..