Why Are Your Property Taxes So Darn High?
While the majority of people pay the most attention to the taxes they see regularly, i.e. income and sales tax, there are other taxes that cost you a lot of money that you may tend to forget about. One of those taxes that cost a lot, but that kind of goes unnoticed is property tax. In fact, depending on where you live and how much property you own, your property taxes can be huge. For some people, like residents of New Jersey for example, property taxes seem extreme.
A 2014 study by Monmouth University found that 26 percent of New Jersey residents said that they were “very likely” to move to a different state, with the most common reason being the high price of housing and property taxes – with property taxes being the main culprit. Residents of Connecticut and New York are also often on the list of highest property taxes. Why is that some locations have much higher property taxes than others?
There are several reasons that property taxes vary from state to state and city to city. Here are just a few of the main causes:
- State employees make a lot of money – if your state pays its workers well, like New Jersey does, then chances are your property taxes are higher in order to help foot that bill.
- Not Much Tourism – if your state lacks a lot of out-of-town visitors then property taxes could be higher to make up for lost revenue.
- Good schools – in order to have the best schools you have to pay for the best teachers and education services. The funds for those expenses often come from property taxes.
- Valuable property – no matter where you live, if you have a valuable home then you will almost assuredly pay more in property taxes. That’s because your property tax is based on the assessed value of your home times the local tax rate. A higher value home equals higher property taxes.
There are other possible reasons for high property taxes, but these are some of the most common. If you want to avoid outrageous property taxes, then your best bet is to simply move to a state where property taxes are lower.
Update on Homebuyer’s Credits
Update on Homebuyer’s Credits Dear Client & Friends: On November 6, the President signed into law H.R. 3548, the ”Worker, Homeownership, and Business Assistance Act of 2009.” The new law extends and generally liberalizes the tax credit for first-time homebuyers, making it a much more flexible tax-saving tool. It also includes some crackdowns designed to prevent…
Revocable Living Trust: Family Financial Security
Revocable Living Trust: Family Financial Security The times in which we live have brought new uncertainty and increased anxiety to our front doors. With the threat of terrorism and the reality of war, our safety and that of our loved ones are at the forefront of our concerns. For many a continually disappointing investment environment…
Municipal Bonds: A Source of Tax-Free Income
[vc_row][vc_column][vc_column_text]There’s one readily available and legal source of untaxed income that we know of: municipal bonds. These securities are issued by state and local governments, school districts, hospitals and other public agencies to support community projects and services. To permit these worthy endeavors to raise money economically, Uncle Sam exempts the interest that they pay…
Employers Offer Incentives for Weight Loss
Employers Offer Incentives for Weight Loss Looking to get some extra cash from the boss? Forget logging long hours, brokering that big deal or sucking up at the company holiday party. Employer weight loss programs Employers have begun dangling big incentives, such as cash bonuses and paid days off, to encourage workers to lose weight.…