Filed under: real estate | Tags: real estate, Rolando Gill, taxes, West Valley City
We received our property tax assessment, have you? Did yours increase even though your property value decreased? Do you understand how this happens?
O.K., here’s a course in Property Tax 101.
Let’s say a property is worth $200,000, and property tax is assessed at 1%, so property taxes on this property are $2,000.
Property values drop and it’s now worth$180,000; so we would think our new taxes should now be $1,800, yes? Then how come it’s assessed at $1,980, a drop of only $20? And we’re also seeing an increase in the school district, etc., so the new taxes are now assessed at $2,120 for an increase. An increase with lower property values.
It’s because the government is used to getting its $2000 and in order to continue getting it they play a numbers game. If taxes were assessed at 1% and property values drop, they just adjust the rate, or the 1% to 1.1% for a new property tax of $1,980 and get the same amount as before. It’s all in the rates, a numbers game.
If you need help getting comparables and contesting your property tax assessment – I can help! Call me Rolando Gill 
801-694-9955
