Poll on property tax, Plz Participate [Archive]

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JoKeRr

Mar 27th, 2005, 10:56 AM

Doing an econ researchish (ok it's only a 2nd yr econ course) assignment.

Need to find out how much property tax you guys pay relative to the current market value of your house (if u don't know the exact price, a guestimate is accepted).

Anyway, plz participate in the poll so I can back up the crap I'm presenting. Thanks pplz.

How to calculate?? use the amount u paid in property tax / (market value of your house)

EDIT
ok, for those of u listed 1.3 or greater, if u can plz reply with exact percentage, it'll be appreciated.

how it's assessed??
http://ottawa.ca/city_services/proptaxes/tax_assessments_en.shtml

MasterAvatar

Mar 27th, 2005, 01:55 PM

Isn't the rate set by each municipality? Can't you just look up the rates in each jurisdiction?

gman

Mar 27th, 2005, 01:57 PM

How do you define your current property value?

What the municipality thinks the value is?
What the real estate market thinks the value is?
What you think the value is?

JoKeRr

Mar 27th, 2005, 02:00 PM

Isn't the rate set by each municipality? Can't you just look up the rates in each jurisdiction?

it's not fixed, cause there're many thing to be taken into consideration (such as location etc), so each property is actually evaluated individually, after compare with the properties sold within the same neighborhood. and it's done annually.

For example:
the girl next door sold her house for 250,000, and your house has the same sized backyard, same # of bathrooms and grarges, but you have 2 extra bedroom. and say her property tax is 2500 this yr, since yours have more bedrooms, even though it wasn't for sale, but in comparison to the girl next door's house, yours will be evaluated at 2500+addition tax on the 2 xtra bedroom etc.

hope that clears some confusions.

sumfunny

Mar 27th, 2005, 02:03 PM

In london the whole city has a set rate, and location and other conisderations are taken into account in the value of the house that they establish

gman

Mar 27th, 2005, 02:13 PM

it's not fixed, cause there're many thing to be taken into consideration (such as location etc), so each property is actually evaluated individually, after compare with the properties sold within the same neighborhood. and it's done annually.

For example:
the girl next door sold her house for 250,000, and your house has the same sized backyard, same # of bathrooms and grarges, but you have 2 extra bedroom. and say her property tax is 2500 this yr, since yours have more bedrooms, even though it wasn't for sale, but in comparison to the girl next door's house, yours will be evaluated at 2500+addition tax on the 2 xtra bedroom etc.

hope that clears some confusions.

The rate is fixed by each municipality. It is called mill rate. It uses the estimation of your property value times mill rate to calculate your property tax.

If the girl next door sold her house for $250,000 and your house is exactly the same + 2 extra bedroom, it will NOT raise your property tax right the way because I believe the property value is calculated by the province every 2 years. At that time, the adjuster will use all the factors to get the property value of your property. The $250K value of the house next door sold last year is just one factor. The $300K value of the house sold next street this year is another factor. If the adjuster knows about that 2 bedrooms, it is another factor.

manixc

Mar 27th, 2005, 02:14 PM

gman

Mar 27th, 2005, 02:17 PM

I don't get property tax. If someone own a piece of land/house and paid tax when s/he bought it, why pay more tax each year? Does the tax cover something like utilities and etc? But those are seperate bills.

When you buy the house, the tax you paid did not go to municipality government. Even if there is, it is only a portion of it.

Property tax is more or less the only (big enough) source of income of your municipality government. Your municipality government needs to pay to build and fix the road, the parks, the libraries, the community center, the staff, ..... and the list goes on.

hagbard

Mar 27th, 2005, 02:20 PM

None, I rent :lol:

Iron Chef Ajax

Mar 27th, 2005, 02:20 PM

Doing an econ researchish (ok it's only a 2nd yr econ course) assignment.

Need to find out how much property tax you guys pay relative to the current market value of your house (if u don't know the exact price, a guestimate is accepted).

Anyway, plz participate in the poll so I can back up the crap I'm presenting. Thanks pplz.

EDIT
ok, for those of u listed 1.3 or greater, if u can plz reply with exact percentage, it'll be appreciated.
1.4%

gman

Mar 27th, 2005, 02:20 PM

None, I rent :lol:

You pay the property tax indirectly. The property tax expense is factored in your rent.

MasterAvatar

Mar 27th, 2005, 02:50 PM

it's not fixed, cause there're many thing to be taken into consideration (such as location etc), so each property is actually evaluated individually, after compare with the properties sold within the same neighborhood. and it's done annually.

For example:
the girl next door sold her house for 250,000, and your house has the same sized backyard, same # of bathrooms and grarges, but you have 2 extra bedroom. and say her property tax is 2500 this yr, since yours have more bedrooms, even though it wasn't for sale, but in comparison to the girl next door's house, yours will be evaluated at 2500+addition tax on the 2 xtra bedroom etc.

hope that clears some confusions.

It's the province that assesses the value of the property. You take that value and multiply it by the rate set by the city to arrive at the property tax. The difference in the tax between the two properties in your example is because of the difference in the assessments of the value of the two properties, not because the rate is different.

Chookman

Mar 27th, 2005, 02:52 PM

EDIT
ok, for those of u listed 1.3 or greater, if u can plz reply with exact percentage, it'll be appreciated.

I'm assuming you want market value and not assessed value. My place is worth 25% more than it's assessed value which is used to calculate my property taxes.

If you go with my market value, I pay 1.31%.
If you go with assessed value, I pay 1.63%

I think there was something in the news a while back that we have among the highest, if not the highest, property taxes in the country.

JoKeRr

Mar 27th, 2005, 03:12 PM

I'm assuming you want market value and not assessed value. My place is worth 25% more than it's assessed value which is used to calculate my property taxes.

If you go with my market value, I pay 1.31%.
If you go with assessed value, I pay 1.63%

I think there was something in the news a while back that we have among the highest, if not the highest, property taxes in the country.

yes market value. :D

manixc

Mar 27th, 2005, 03:39 PM

When you buy the house, the tax you paid did not go to municipality government. Even if there is, it is only a portion of it.

Property tax is more or less the only (big enough) source of income of your municipality government. Your municipality government needs to pay to build and fix the road, the parks, the libraries, the community center, the staff, ..... and the list goes on.

oh thanks that make sense. but what about income tax? Those probably to straight to federal and provinical gov huh?

gman

Mar 27th, 2005, 03:45 PM

oh thanks that make sense. but what about income tax? Those probably to straight to federal and provinical gov huh?

Yes.

ramoose

Mar 27th, 2005, 04:05 PM

rc51

Mar 27th, 2005, 04:09 PM

roughly 1.8 here in the south part of Wpg. This city is ridiculous for property taxes..and it varies greatly where you are in the city.

JoKeRr

Mar 27th, 2005, 04:11 PM

1.5% in the shwa

holy crap, that sounds high. I live in a very nice part of Toronto (walking distance to a golf course) and I live in a big bunglo, my parents told me the tax and it only came out to be 0.9%. hm, maybe toronto's cheaper?

gman

Mar 27th, 2005, 04:15 PM

holy crap, that sounds high. I live in a very nice part of Toronto (walking distance to a golf course) and I live in a big bunglo, my parents told me the tax and it only came out to be 0.9%. hm, maybe toronto's cheaper?

Depends on how you define cheap. The property value of Oshawa is lower than Toronto.

O x 1.6% can be lower than T x 0.9%.

On the other hand, Oshawa residence paid more than their own share in property tax. GM pays pretty low rate of their commercial property tax. The problem is there is still a government to be run. Somebody needs to pay for it. Guess who?

JoKeRr

Mar 27th, 2005, 09:03 PM

Depends on how you define cheap. The property value of Oshawa is lower than Toronto.

O x 1.6% can be lower than T x 0.9%.

On the other hand, Oshawa residence paid more than their own share in property tax. GM pays pretty low rate of their commercial property tax. The problem is there is still a government to be run. Somebody needs to pay for it. Guess who?

So overall property tax is REGRESSIVE?? I thought it would have made more sense if it was progressive. btw, residential property tax only.

gman

Mar 27th, 2005, 09:16 PM

So overall property tax is REGRESSIVE?? I thought it would have made more sense if it was progressive. btw, residential property tax only.

It is not about progressive or regressive. Different municipality has different and independent rate. Different municipality has different budget and different tax base. Say, 2 different municipalities have the same number of property and the same budget. Both of them needs $N millions. The total property value of municipality A is $100N millions. The total property value of municipality B is $200N millions. To get $N millions, municipality A's mill rate will be 1%. To get same $N millions, municipality B's mill rate will be 0.5%.

There are different classes of property. There is residential, commercial, farm, ..special treatment, etc. The main portion is residential and commercial. If the tax rate on commercial is low, the municipality will raise the residential to get enough money. You may ask why. It is because a municipality may lower the commerical property tax to attract businese to move there. For Oshawa's case, GM has a special deal with the government so that they put their factory there.

700mb80min

Mar 27th, 2005, 10:35 PM

my area of N.S. i pay close to 1.9% but homes are very cheap.

JoKeRr

Mar 28th, 2005, 01:31 AM

gman

Mar 28th, 2005, 01:35 AM

actually, just did some more research, seems property tax is a regressive tax OVERALL--which means u pay more percentage wise if your house is not as nice, hm, this is ******. btw, PLZ list how much you're actually paying percentage wise. thankQ

Not really. In the same municipality, the percentage is the same based on the assessment value.

I don't remember the assessment value of my property and I don't know the market value of my property either. Hence, I can't give you a percentage.

JoKeRr

Mar 28th, 2005, 02:26 PM

Not really. In the same municipality, the percentage is the same based on the assessment value.

I don't remember the assessment value of my property and I don't know the market value of my property either. Hence, I can't give you a percentage.

think: how much did a house sell for in your neighborhood recently?? and how does it compare to yours??

blakeatwork

Mar 28th, 2005, 06:45 PM

Conservative Market Value: 0.0114%
Aggressive Market Value: 0.0103%
Assessed (MPAC) Value: 0.0144%

gman

Mar 28th, 2005, 07:16 PM

think: how much did a house sell for in your neighborhood recently?? and how does it compare to yours??

I don't know how much a house sold for in my neighborhood and I don't really care. I just hope they sold theirs as low as possible.

I don't really care about the market value. I care about the assessment value which affects my amount of property tax. Market value does not affect my property tax directly although when the assessment value has the market value factored it, it will.