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January 24, 2008
Jan '08 Tentative Assment
does anyone understand the assessed value that DOF uses to calculate property tax? There is a line item that reads "6-20% Limitation", and the amount in the row under the header "Land" doubled from last year, and my assessed value went up $2000.
Comments
Theoretically, your assessed value is a maximum of 6 percent of the market value. However, assessed value on class 1 homes is only allowed to increase 6 percent per year or 20 percent over 5 years (thus "6-20 limitation." Don't worry about the "land" thing. What you worry about is the bottom line number, which is your total assessed value less your exempt assessed value (which is from the STAR program). In your case, $27,135 is what you will be taxed on once the City Council sets the tax rate in the summer.
Notice that your actual assessed value is about 3.2 percent of market value. As a result, your assessed value can keep going up at 6 percent per year (or 20 percent over 5 years) until it hits 6 percent of MV, even if your market value is falling. So, we may all see our taxes going up even if the market is going the other direction.
Posted by: guest at January 24, 2008 2:41 PM
Thanks. That was helpful.
Posted by: cornetor at January 24, 2008 3:06 PM
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