Hanneke 🐣
I don’t really understand property taxes on homes. Just because the value of my house went up does not mean I magically have more income with which to pay more taxes.
It’s only potential income, but even that is debatable because when I sell and buy another house that also is more expensive than it was.
Kit Rhett Aultman
@h5e I'm guessing you live in a state like Illinois that doesn't have a robust homestead exemption system?
Kit Rhett Aultman
@h5e Ah. In most US states, they do that, but then put special restrictions on how much they can do that to your primary residence. The idea being it helps home owning families not face exactly what you're describing, or at least making it happen more slowly.
Hanneke 🐣
@roadriverrail I am nowhere near the states lol ? I’m from the Netherlands all they way over the pond in Europe.
Hanneke 🐣
@roadriverrail Anyway here they make up a number what they think what your home is worth this year (or last year idk) and base your taxes off of that.
Kit Rhett Aultman
@h5e There are some changes by municipality here, too, but in general state law still sets the broad rules. Some of the common ones states use are: (1) exempting ~50% of the median price of a "normal" home (2) Putting a very low maximum on how much your primary residence's taxes can increase by (3) Fixing the assessed value to that at the date of sale
That latter one is a California thing that actually causes serious issues, though.
Hanneke 🐣
@roadriverrail They do come down as well, but this year the value number goes up by 17% on average which would imply taxes go up that much as well and that’s kind of a lot. As if the current inflation isn’t bad enough ??♀️
Hanneke 🐣
@roadriverrail Apparently they lowered the tax rate (this is different per municipality, don’t get me started), so taxes will (on average) increase only 4%, not 17.
Hanneke 🐣
@roadriverrail There are probably limitations here somewhere too, I don’t know the details really. All in all I have no trouble paying my taxes but it just kind of hit me that it’s a weird principle from this perspective.
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