Forum Post: Blood from a stone..........They just keep wanting more!
Posted 12 years ago on Oct. 15, 2011, 4:45 p.m. EST by mustwegetviolent666
(10)
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Fair School and Property Tax in Pennsylvania
I don't know how other state and local governments operate but in Pennsylvania
local government is out of hand with School and property taxes. I live in a community that currently doesn't have a job available that pays over 17,000 annually, that's before federal taxes, so after taxes your making 12,500. Property and school taxes are around 4700.
I live in a small 2 bedroom town home, I own no property, it's all considered community property.
So after federal, state, school, and property taxes I'm left with 7800 for the year, that is if I took one of these jobs.
My gripe is if a community can not supply reasonable employment opportunities to it's
citizens, then the local government should lower it's tax rates based on the decline in it's tax base.
In order for me to have my taxes lowered, I had to hire an appraiser ($400) which happened to be the same appraiser that over valued the property 5 years earlier when I purchased it. I had to go before a board of 5 township officials with the new appraisal and then they either agree or disagree on lowering the accessed value of my property.
The whole assessment process is a hoax, the county assessors are employees of the county they are basically real estate appraisers. But unlike property or real estate appraisers they do not follow the standards set by the National Uniform Standards of Professional Appraisal Practice. One of the ethics guidelines within this organization states that an appraiser should be an uninterested second party. So how can a county employee who's job is to valuate property and his or her performance is based on the revenue creation from valuations, be a non interested second party?
So the reality of it is my property is worth about 30% less in 4 years time, although I get a tax reduction of $600. Only problem is I don't have a job and there are no jobs in the area that will sustain my extravagant life style? So maybe my best bet is to relocate. If I sell the property it will hopefully sell at 30% less than what I paid 5 years ago. So why doesn't the government hold the banks responsible for there half of the decline in value? The banks have independent appraisals on property they finance, and finance company's who in my case sold my mortgage to a bank required me to get an appraisal. So if banks and finance companies have the same misinformation regarding a speculative mortgage venture, why is it the buyer is held responsible for 100% of the risk? I think it should be 50-50.
The Federal Government should limit local property and school taxes to a flat rate based on each home owners earnings. This would take government funding out of the real estate guesstimate game; And keep homeowners in their homes in good times as well as bad!
No, I'm not saying I walk away from the loan, and by 100% of the risk I meant the difference between the original purchase price and the deflated price at the time of resale. the buyer should only be responsible for half the risk, the risk being that the property would decrease in value rather than increase. For example say the original purchase price was 200,000 you lost your job and have to sell, the real estate agent informs you that property value's in your area have decreased 25% which which means your home is worth $50,000 less. You purchased the property only 5 years ago, and your appraiser at that time valued your property at 200,000. The bank or loaning institution also had an appraisal and it would be safe to assume that their appraisal was at or near that value because they approved the loan. Because the bank or loaning institution had the same info about the value of the property as the buyer the difference between the original value and the deflated value should be shared equally between the loaning institution and the buyer.
"why is it the buyer is held responsible for 100% of the risk?" Thats how a free market works. If you walk away from the loan, then the lender has realized their risk.