Newbie Property Taxes

[JandkDavis]

Hi

I will be potentially moving to Oregon with my employer (they are sorting Visa) later this year. I have started looking at some of the real estate pages to see what my money will buy me etc... Some of the sites state a Tax/Yr figure on the listings, can somebody explain what this is please? Is it dependant on the area etc?

Thanks

John

[Bevdeforges]

The property tax figure cited in the ads is normally what was paid in the prior year. Property tax is a tax based on the "current market value" of the property - and usually assessed only on land and buildings (although in some states there is a general "property tax" that include the value of your car and other large items, like boats, campers, etc.).

Many mortgage lenders will insist that you make monthly payments toward the property taxes along with the mortgage payment. Normally, the property taxes fall due all at once in the middle of the year, but the bank will set up a reserve (and usually pays a nominal interest on this balance) and often will settle the actual tax bill for you.

Property tax is a tough one right now, as property values are falling, and so towns are losing revenue - so rates tend to go up to allow the towns to continue to provide services at the same level they have been doing.

You may want to consider renting for the first year or two you are in the US until you figure out the tax system and to allow the current housing troubles to settle out. Prices are still going down, and towns are having trouble coping with how to adjust their tax systems to deal with the fallout. There are a number of studies out there that show that renting may actually the economical choice - at least until rents catch up with house prices.
Cheers,
Bev

[dana point dan]

each state has their own property taxes, usually collected bianually. when you are looking at properties call the real estate agent handling the property and ask them for a local tax accountant. Each county in each state figures the tax amount differently. I live in southern califorinia, orange county where the taxes are a ball park range of 1.1 % of what the home purchase price.
if you want more info just email me and a I will give you some websites to look at. BTW my father in law lives in Oregon and is selling his home.
Dana Point Dan

Originally Posted by JandkDavis

Hi

I will be potentially moving to Oregon with my employer (they are sorting Visa) later this year. I have started looking at some of the real estate pages to see what my money will buy me etc... Some of the sites state a Tax/Yr figure on the listings, can somebody explain what this is please? Is it dependant on the area etc?

Thanks

John

[RICHNTRISH]

What do these taxes actually cover ?
Is it the same as the UK community charge ?

[dana point dan]

Originally Posted by RICHNTRISH

What do these taxes actually cover ?
Is it the same as the UK community charge ?

that is a very good question... the cynic in me wants to say nothing but govt salaries. however, these taxes are supposed to go to local infrastructure i.e. local govt, roads pretty much anything the us gov provides. the funny thing is in california we get to write these off on our annual taxes. you should talk to a local tax certified public accountant that is familiar with non us citizen issues. also oregon has a very strong support structure for people in need. In Calififornia we have State taxes based on property values along with consumption tax on comsumer goods such as gas and food. Oregon has no state taxes. Try calling the real estate agent and ask them for references.
Dana Point Dan

[Bevdeforges]

Originally Posted by RICHNTRISH

What do these taxes actually cover ?
Is it the same as the UK community charge ?

Sort of. Property taxes vary from state to state, from county to county and in some cases from town to town. In general they cover local "property related" services - police, fire, municipal government, schools, often rubbish pick-up (but not always), other community services (libraries, local road works, parks and recreation boards, etc.).

In some areas, the town assesses all the property tax and there is one rate (usually a percentage of the "assessed value" which is based on "fair market value" as of the last assessment date). In other areas, you are charged by each individual "assessment district" based on the exact location of your property. Town A may be covered by a variety of school districts in those states where the schools aren't town-based. So your bill would be composed of: town rate, school district rate, the garbage district rate, the police district rate, water district rate etc. etc. All for the individual districts that provide the various services.
Cheers,
Bev

[twostep]

Millage rate determines your property tax. Some counties reassess them annually. Unfortunately I live in one of those:>) It is based on average taxable values which of course move with the market. Pull up the tax assessors site for the county you plan to move to. You can either use tax tables if they are posted or simply call.
We are looking at moving to TX - average for 400k is 12k annual tax in the county we have to move to.

[JandkDavis]

Thanks for that I think I understand. I guess I will find out more as I use a realtor.

Next question is around average bills. i know this depends on how big the houses are but what can I expect to be paying for insurance and utility bills in Oregon.

I would probably have a 4/5 bed home if that helps.

Thanks

John

[twostep]

Your insurance depends on a number of factors such as location, size, age, value, history of house and owner (lack thereof in your case), deductable. Valuables such as art, jewelry, guns ... may require a special rider to the policy.

[synthia]

Also, if you are on a flood plain or within a certain distance from the water, you may be required to buy flood insurance. Regular home insurance excludes damage from flooking of any sort.