Kered13 t1_j9rr8j3 wrote
If a home sold for $X it should automatically be reassessed at $X. Not a penny more or a penny less. I don't understand why it doesn't work this way, it's just obvious. Property taxes are based on the market value, and you have just established an exact market value. Obviously reassessments still need to take place and that's still a thorny issue, but if a house has just sold it seems open and shut.
hypotenoos t1_j9rvt84 wrote
Every sale doesn’t qualify as “fair market value”
Kered13 t1_j9s0vmv wrote
Any open market sale should be close enough. I mean obviously if you sell it to your friend or family member for $1 that shouldn't count.
hypotenoos t1_j9s1de5 wrote
But what if you sell it to them for $150k but it’s “really” worth $180k?
Gifts of equity and seller concessions happen all over the place.
Penny more, penny less becomes less of a good standard real quick.
ktxhopem3276 t1_j9rx0qv wrote
Houses that haven’t sold for decades are hard to assess and recent sales end up paying a lot higher taxes than older sales. The county is supposed to adjust for inflation but they lost a lawsuit bc they were using biased data to calculate inflation
Kered13 t1_j9s195l wrote
Right, like I said reassessments do need to happen and that is a tricky issue. But houses that have just sold should be easy to assess.
ktxhopem3276 t1_j9s2lrk wrote
Both should be reassessed at the same time otherwise the system is unequal unless adjusted for inflation properly
McJumpington t1_j9sbf6w wrote
This ignores housing bubbles though. Also seller prices prices typically increase when there are lower interest rates as their are typically more bidders. Some end up bidding over what the house is worth as a means to have the winning offer.
Both of these situations are unfair to buyers who may end up seeing drastically lower assessments on surrounding properties just months later.
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