America's Priciest Property Taxes

Forbes ^ | 03 October 2007 | Matt Woolsey

[Lorianne]

After navigating a tight credit market and securing a home loan, a big property tax bill really hurts.

And nowhere is it felt more than in New York and New Jersey, where residents pay more in these taxes than anyone else in the country. The hardest hit? Homeowners in western New Jersey's Hunterdon County. Last year, the median yearly property tax bill amounted to a whopping $7,999 here, according to the Tax Foundation, a nonpartisan research group in Washington, D.C, which compiled data based on 2006 figures.

Things aren't much better in New York. In Nassau County, Long Island, the median homeowner drops $7,706 a year, while up north, Westchester County residents pay $7,626 a year.

"They spend more on government [in the Northeast]," says Gerald Prante, an economist at the Tax Foundation. "In New York and New Jersey, they're high on every tax."

[Globalist Goon]

“At least I don’t put up with government that costs more than I can afford.”

Some people are hit overnight with huge rate increases, along with creeping ones.

I guess if you can afford Socialism and Redistribution then you are OK....welcome to the new America.

[NTW64]

Not everyone votes Dem, they have this area locked true. That does not mean they win by 100%

[Lorianne]

This article had me looking for a chart or map or something that shows property taxes as a percentage of property value in various areas. I couldn’t find anything.

Anyone know of something like this?

[goldstategop]

If the yuppies can afford it, its the government they want. I like my taxes low and government small. Then again other people prefer it different.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[Clemenza]

In NJ, we are down to Somerset, Morris, Warren, Sussex, Hunterdon, and Cape May counties, and who know's how long that will last.

Here in Mercer County, I am surrounded by Princeton professors and some sane folks. We still have GOP-leaning areas (Hopewell, Washington Twp.), but here in Lawrenceville, we have had an all-Dem Council since 1982.

[mamelukesabre]

Property is worth more in the east. These numbers are meaningless. Tax rate is what matters.

[Globalist Goon]

In some way, shape or form you are getting hit. I don’t care where you live.

Property taxes is one of those issues that I wish people would turn out for and fight back. The county I am in in NC took a huge rate increase a few years ago. Nobody seemed to care.

[Diana in Wisconsin]

North, to Alaska. :)

[Swanks]

Property is worth more in the east. These numbers are meaningless. Tax rate is what matters.

They are not meaningless. If a person is retired, and in their house for years, they are still fixed income, even though the asset increased in value. They can't sell part of the house, to keep up with what is now $15,000 tax hit which was $7,000 just six years ago. Nor should they be forced to move away, simply because the legislators are pigs, and revenues are never enough.

[ridesthemiles]

Wisconsin is way too high, also.

[NTW64]

I fully agree, the elderly are still punished. The tax breaks for the retired are to little. I believe in securing your own future but some times it is not at hand for the family man that worked his whole life to no longer afford a house he has paid for in full due to property tax.

[Gay State Conservative]

A couple of years ago I toyed with the idea of buying investment property in Fair field County,CT or Westchester County,NY.Of course I was about 3 years too late for it was from about 2002 to 2005 that property in that area had appreciated by almost 100%.

But back to my point...in researching properties in Greenwich,CT and in Rye,NY (just over the border from Greenwich) houses which appeared to be very similar (price-wise and otherwise) in the two towns had **very** different tax bills...Greenwich having a bill of around $4,000 and Rye having a bill of $10,000-$12,000.

[Blood of Tyrants]

Inflated property values and inflated property taxes. My house is worth about the median for my area, about $200,000 give or take. My property taxes run about $700 a year.

[mamelukesabre]

As long as the RATE doesn’t increase, I have no problem with that. If the property value goes up, then the amount you pay goes up. That’s fair, in my opinion.

BTW, there are some states where your property taxes don’t go up at all...ever. You pay the same amount per year the day you bought the house...even if you own it for 75 years. But if you sell it then the new owners pay the current tax amount. I think california is one of those states, but I could be wrong.

This is a good idea, but keep in mind that the tax rates will need to be higher to compensate for all the old people getting off cheap.

[mamelukesabre]

What state do you live in??

My home is worth a quarter of yours at most. Yet I’m paying at least 50% more per year than you do.

[Freedom4US]

Not everyone intends on selling, though the turnover is higher than I thought. Those on fixed incomes, retired folks will just have to find another place to live, huh?

[mimaw]

They shouldn’t come to tax hell Wisconsin, we can’t be too far behind.

[Wuli]

"Elsewhere, it's one or the other, not both. California properties are among the country's most expensive, but property tax rates there are a third what they are in the Northeast."

While that all might be very true, state INCOME taxes are much higher in California compared to New Jersey.

In New Jersey: If your income range is between $0 and $20,000, your tax rate on every dollar of income earned is 1.4%.

Whereas in California: If your income range is between $0 and $6,146, your tax rate on every dollar of income earned is 1%; between $6,147 and $14,570, the rate is 2% and between $14,571 and $22,996, your tax rate on every dollar of income earned is 4%.

In New Jersey: If your income range is between $20,001 and $35,000, your tax rate on every dollar of income earned is 1.75%; and if your income range is between $35,001 and $40,000, your tax rate on every dollar of income earned is 3.5%.

Whereas in California: If your income range is between $22,997 and $31,924, your tax rate on every dollar of income earned is 6% and if your income range is between $31,925 and $40,345, your tax rate on every dollar of income earned is 8%.

In New Jersey: If your income range is between $40,001 and $75,000, your tax rate on every dollar of income earned is 5.525%.

or between $75,001 and $500,000, your tax rate on every dollar of income earned is 6.37%;

or $500,001 and over, your tax rate on every dollar of income earned is 8.97%.

However, in California ALL your income at $40,346 and over, the tax rate on every dollar of income earned is 9.3%.

I have always thought of California as more "progressive" than New Jersey, but while the NJ top rate is only slightly less than in California (8.98% vs 9.3%), you reach the top rate in California almost $460,000 sooner than you do in New Jersey.

http://swz.salary.com/salarywizard/layouthtmls/swzl_statetaxrate_NJ.html

[mamelukesabre]

I did internet research on this tax issue abuut 8-9 years ago. There are some places where people really do pay very little taxes. The ones that I remember were Vermillion SD, Brownsville TX, New orleans LA, And one town in North Carolina(or was is Tennessee?) that I don’t remember. Obviously New orleans can be discounted now.

Some states don’t have sales tax. Some states don’t have income tax. Some states have almost no property tax. Then there are places where housing is so cheap it’s funny. But the towns where housing is so cheap there are no jobs to be found. Brownsville was one of those. I seem to remember you could get a house in Brownsville for under 5 grand. I think New orleans was similar. Obviously those homes in new orleans won’t be around anymore.

[businessprofessor]

I would not shout it too loudly. The dims have plans for large tax increases. The tax rate freeze passed by the dims will cause property taxes to increase dramatically over 5 to 10 years if you live in a nice area. If the property tax rate freeze had been in effect since the early 90s, we would be paying $10,000 to $15,000 per year also.