Friday, January 28, 2011

How To Determine Your Real Estate Taxes

As all investors know the government shakes you down every year for property taxes so your money can be played with to buy golf courses, rehab buildings at costs where they will never get our money back out, and fund never ending and ever growing welfare programs that have no termination dates forcing a person to stand up on their own two feet and care for themselves and their family.

And there is this misconception that the government seems to have these days thinking that the money is "theirs" when the reality is that it is "OURS", they work for "US" and it should be spent in a manor that the general public feels it should be spent. And shaking down the middle and upper class to toy around with things they don't know about such as real estate or giving it to those who desire not to help themselves but rather to "work" the system is not the desire of the general public.

But regardless of the situation and regardless of the fact that real estate had dropped by at least 20% in value since the bubble popped and they never dropped the tax appraised value of property to match; we still have to pay them what they demand until enough people have decided that they have had it and stand up to this theft from hard working Roanoke Citizens.

So it is what it is for now and this is how you determine your real estate taxes in Roanoke City without having to call the Tax Man to get an answer. Take the total GIS tax appraised value of your home and multiply it by $1.19. Then divide that number by 100. That's what you pay annually for the property. If you want a 6 month amount divide it by 2.

So you have a rental that's total tax value is $65,750.

$65,750 X $1.19 = $78,242.50.
$78,242.50 divided by 100 = $782.425
So your taxes for the year will be $782.43.

If your property is in Salem drop that tax you multiply it by to $1.18
And if it is in Roanoke County drop it on down to $1.09
If it's in Vinton slash it down to $1.00 even
And in Botetourt County you can knock it down to .65

By the looks of that, Roanoke City is really sticking it to it's citizens. 

Quote from Benjamen Franklin on Entitlement Programs and the Poor:

…I am for doing good to the poor, but I differ in opinion of the means.—I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it.

In my youth I traveled much, and I observed in different countries, that the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer.

There is no country in the world [but England] where so many provisions are established for them; so many hospitals to receive them when they are sick or lame, founded and maintained by voluntary charities; so many alms-houses for the aged of both sexes, together with a solemn general law made by the rich to subject their estates to a heavy tax for the support of the poor.

Under all these obligations, are our poor modest, humble, and thankful; and do they use their best endeavours to maintain themselves, and lighten our shoulders of this burthen?—On the contrary, I affirm that there is no country in the world in which the poor are more idle, dissolute, drunken, and insolent. The day you passed that act, you took away from before their eyes the greatest of all inducements to industry, frugality, and sobriety, by giving them a dependence on somewhat else than a careful accumulation during youth and health, for support in age or sickness.

In short, you offered a premium for the encouragement of idleness, and you should not now wonder that it has had its effect in the increase of poverty. Repeal that law, and you will soon see a change in their manners. St. Monday, and St. Tuesday, will cease to be holidays. SIX days shalt thou labour, though one of the old commandments long treated as out of date, will again be looked upon as a respectable precept; industry will increase, and with it plenty among the lower people; their circumstances will mend, and more will be done for their happiness by inuring them to provide for themselves, than could be done by dividing all your estates among them.

[From Benjamin Franklin, "On the Price of Corn and the Management of the Poor" (1766), Writings (New York: Library of America, 1987), 587-88.]


Greener Pastures--A City Girl Goes Country on March 8, 2011 at 9:41 AM said...

Hi Dallas. But can you tell me how they figure out the tax appraised value? I know it's not the market value. The market value of my house is, say $260,000 and the tax appraised value is a lot lower--say around $160,000. I'm afraid they will raise my taxes anytime because they will say it's undervalued to begin with. Are these two values different?

My husband and I want to come to your meetings.

Dallas ® on March 8, 2011 at 10:45 AM said...

We have a meeting on the 22nd of this month that you can get some clear answers on that. Roanoke Cities real estate valuation people will be coming.

Typically the tax appraised value is about 10% below the real value of property. Since the real estate bubble popped values in Roanoke have dropped by 20%. I see a larger drop than that but the president of the Realtors Association says that so I'll go with what he says.

So in all actuality if the tax appraised value is typically 10% below it's true value, today it would be 10% above it's value due to the bubble popping.

You are in a kind of reverse type situation which is not common. And I would be worried about them raising your taxes as well considering they don't like to leave any money on the table. However if they did I would bet that it would be by small increments. UNLESS, you just rehabbed it and are doing the tax abatement program or something where they will be in your house to reappraise it.

Come on down to our meeting on the 22nd and ask the questions you have to the city real estate valuation people. And just make sure you don't say the address if it is an address within the city.

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