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.
Which Tax Breaks Will Be Restored for 2014?
It seems like every year at this time the conversations start to creep up in the media regarding which tax breaks will be renewed and which breaks will get the permanent axe. This year is no different as Congress already let more than 50 such tax breaks expire at the end of 2013. Now the…
Helpful Deduction Tips for Collectors
Are you a collector? Have you ever wondered if you could donate the items you collect to a charity auction for tax break purposes? If you are considering this scenario, there are some things you should know. The first thing you need to make sure of is that the charity you are considering is actually…
Ask Yourself These Key Questions When Planning Your Estate
Almost no one can choose when he or she will die, but everyone can choose how his or her assets will be handled when that time comes. It’s really just a matter of having a current and effective estate plan in place before you go. Estate planning is a wide subject with many aspects; and…
Another Senator Says It’s Time to Go After the Wealthy
Another Senator Says It’s Time to Go After the Wealthy We all know that death and taxes are two certainties in life. However it seems that we should probably add the argument that the wealthy should pay more taxes to that list of certainties. According to reports, Senator Bernie Sanders of Vermont recently shared his…