esrosedotblog

A YEAR OF WAITING

For some reason that they explain but I don't really understand, it takes a year to get the property taxes squared away on a new home purchase.

When the first tax bill comes, it has the same amount the old owner would have paid based on his purchase price plus the 2.5% addition that is allowed in this state for inflation of value.

So here it is 11 months later and we got our check, a refund from the taxes we paid for the year on the old assessment.

This was good news.

As it turns out, I had pretty well predicted that we would pay a third less tax on the condo. Our old house had a very low assessment, comparatively, because we bought on the low cycle in 1996. And, as noted, even though the real estate value almost tripled in that time, the taxes only went up 2.5% a year.

Don't look at me askance. This is the old Prop 2 1/2 thing that was passed in California years before we got here and is one of the main reasons that we are in such fiscal disarray. The "tea baggers" of that time took hold of the proposition process to put a tight cap on how real estate assessments could change. Two and one half percent max per year. So that is what all counties have done though even on the upswing our home doubled in value our taxes did anything but. Now, tragically for the state, many people are asking for reassessment in the new market which further reduces the tax revenue from real estate.

But I did not want to get into a rant about the taxes. I am happy to pay them. I am happier to know that when we decided to downsize we would realize some significant savings and this is one of them.

I suppose I could say that there are many others, mostly the electrical cost. Smaller more efficient space with units on either side of us. Also water. No irrigation. To say nothing of the pool man, the gardener, the house cleaner and other service people regularly called.

Mission more of less accomplished.

Labels: condo