Posted on: 15th Nov, 2008 11:44 am
I am a lender in Texas and our FHA guidlines state that we must base taxes on prior asessed value not the new purchase price. I am getting conflicting information from California agents. The partuicular home in question is in California.
Hi michelly!
As far as I know property taxes are assessed upon the market value of the property. But many a times we can find that market value and sale price are same. In that case, we can say that the taxes are assessed on the sale price.
Thanks,
Jerry
As far as I know property taxes are assessed upon the market value of the property. But many a times we can find that market value and sale price are same. In that case, we can say that the taxes are assessed on the sale price.
Thanks,
Jerry
Property taxes are always based on the tax assessor's value.
This probably has to do with Prop 13 which ties the property tax to purchase price instead of current market value, in other words the purchase with trigger a re-assessment.
Prop 13 limits California property tax to 1% of assessed value. Property is reassessed when the property interest is transferred, except for certain transfers. The reassessment is based on many factors and is not necessarily the purchase price, market value, or appraisal value.