[HN Gopher] Economist explains why you can't afford a house anym...
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       Economist explains why you can't afford a house anymore [video]
        
       Author : hunglee2
       Score  : 8 points
       Date   : 2024-05-01 17:01 UTC (6 hours ago)
        
 (HTM) web link (www.youtube.com)
 (TXT) w3m dump (www.youtube.com)
        
       | iknownothow wrote:
       | I have a question for people who know how American housing works.
       | Are property taxes based on current price? If so, who sets
       | current price? Also does property tax fill the coffers of local
       | municipalities or the state?
        
         | cmmeur01 wrote:
         | What's the current price of a house purchased before right now?
         | 
         | They're usually based on sales price and then also "reassessed"
         | every couple / few years by the PVA (property value
         | administrator) which now usually means using some sort of
         | algorithm based on recent sales and whatever else. Then you're
         | given a chance to appeal the value with evidence showing why it
         | doesn't fit your specific situation before the tax payment is
         | due. At least this is how it works in my area.
         | 
         | This is on a county level in my state.
        
           | mistrial9 wrote:
           | all residential property in the US is administered at the
           | county level AFAIK.. Louisiana has parish law and New England
           | has some township structures that may be a bit different.
           | information welcome
        
         | acchow wrote:
         | In the US, property taxes go to state and local governments.
         | 
         | > Are property taxes based on current price?
         | 
         | Yes, except in California due to Prop 13, where your assessed
         | value is decided when you purchase the property (or revalued
         | when it is significantly rebuilt) and increases by at-most 2%
         | annually (below inflation).
        
         | positr0n wrote:
         | Yes it's a percentage of the current market value. The value is
         | determined by the county tax assessor in all states I'm
         | familiar with. They usually try to lowball the value by 10% or
         | more. That way no one can really complain they valued the house
         | more than you can sell it for. 60% of actual market value is
         | official policy in Alaska my friend told me.
         | 
         | Usually there are various discounts and deductions depending on
         | the taxing entity. E.g. for your primary residence you deduct
         | $100k off the value. Value growth YoY is capped at 10%. If you
         | are over 65 the tax owed is capped until you die. X% off for
         | disabled veterans, etc etc.
         | 
         | People complain about the amount they are paying, but I've
         | never heard serious complaints the system is unfair or corrupt
         | (though I'm sure it exists somewhere). The assessors use the
         | statistics they know about your house, sq. ft., lot size, etc
         | as well as neighborhood "comps" for what similar houses have
         | sold for. Also there is a lengthy and formal protest period
         | every year.
         | 
         | In Texas there is a cottage industry of lawyers that will
         | protest your property value for you. Sign some documents and
         | they will send letters and show up at protest proceedings and
         | send you a bill for 30% of the tax they saved you. No money out
         | of pocket and nothing owed if you don't save money.
        
         | hinkley wrote:
         | It tends to trail real value in two ways. One, it's not
         | assessed continuously so it tends to fall behind during
         | inflationary and demand curve events.
         | 
         | Second, it's very unpopular to have the value overestimated or
         | even objectively correct. The people in charge of those
         | decisions are elected officials and property taxes are a sure
         | way to piss off your constituents. So they tend to be
         | lowballed.
         | 
         | I bought an empty lot a number of years ago, using the agent we
         | used to close on our house. I had that agent find and contact
         | the owner to see if I could buy it, and he volunteered to sell
         | it at the assessed value. I told the agent 'sold', but then he
         | talked to his friends and they clearly told him he was crazy,
         | which is true. He asked for about 12% more and I didn't even
         | blink.
        
       | NEETPILLED wrote:
       | Answer: The Federal Reserve.
       | 
       | YOU ARE WELCOME.
        
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