I know the Newark area has extremely high taxes, just like the Chicago area! I own multifamily in Berwyn and Lyons which are both near west Chicago suburbs. They both have high taxes in relationship to the rest of the country, and one of the tax bills is actually going up over $3,000 this year! Because we live in such expensive areas, when a property appreciates the taxes rise with it.
All this to say, make sure you get a great deal and also make sure you understand how your local taxes work. Your local tax assessor's website probably has all the information you need to do the research. I just use the tax assessors calculator and it explains all the formulas.
Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
9y
It could come from voting for certain politicians who run on taxing the rich. If you own property, maybe you are rich in NJ. It also comes from increases in education spending at the local level. Taxes in "red" states seem to be lower. If not property taxes, then income taxes.
Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
9y
If politicians want more money to fund their programs, they have to increase taxes on those who earn an income (rich) so they can give it to those who don't earn an income (disenfranchised victims). This gets them more votes for the next election and gives the "rich" incentive to move to another state.
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
9y
$4000 in one year is NOTHIING! Check out this rental of ours that dropped $54K from 2015-2016, then hiked up $27 from 2016 - 2017 and now jumped another $11K from 2017-2018! Sometimes the assessors have no rhyme or reason that is logical.
Investor · Ogdensburg, WI · Member since 2016 · 273 posts · 351 votes
9y
There are a lot of factors. Most common would be a revaluation (this is where the properties in the area are reassessed), this however does not always mean taxes are going up.....Your value increasing and your taxes increasing are 2 vary different things!
Another possibility is a school referendum... After the referendum term the taxes often drop.
Another possibility is a loss in (Some) property value... Locally we just had a large manufacturing employer have their value decreased by 10mil. This will have a noticeable impact on home owners. Another form of this is when folks moved their wood land to "mfl" managed forest lands.. The taxes are substantially decreased as the land owner signs a timber management contract and pays when they do a harvest.
Laws vary drastically from state to state. I would suggest learning yours. After all it is one of if not the biggest expense you will have as an investor.
Investor · Leesburg, FL · Member since 2014 · 73 posts · 86 votes
9y
@Patti Robertson I think the OP was talking about property taxes jumping 4K not the assessed value of the home.
Another reason you could see a jump like this is if the home was under homestead exemption in one year, and then the following year that was removed. We see that here in FL, not sure how that plays out in your state.
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
9y
Usually they just go up year by year as property's appreciate. In many counties, like where I live in Jackson County, they will reduce the assessed value of a property that is dilapidated or bought in foreclosure or whatever for two years (if you challenge the value based on your purchase or other info). Then they will raise it back to market after that period of time.
Is it possible something like that happened with your property?
Real Estate Agent · Chicago, IL · Member since 2016 · 283 posts · 71 votes
9y
Property values go up as each area appreciates or depreciates. Given the uptick in the market as of the past few years this makes sense. A lot of this is city/county based from the assessors
Newark, NJ · Member since 2014 · 79 posts · 12 votes
9y
Wow, so many replies. Thanks guys.
Yes, it's the tax that went up $4K. Not talking about home price. And it's not my property. It's just some property I checked out. I thought I'd ask BP.