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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: GraceZ who wrote (12626)8/19/2003 8:08:00 PM
From: fattyRead Replies (2) of 306849
 
>For the country as a whole, I think the $14k tax bill is a reasonable market price for a house worth $500k before federal/state/commercial/millionaire's subsidies.

Your parent's house's tax bill is $28 per $1000. I did some number crunching on 3 towns in MA using data for 1999 and this is what I found out:

1) Newton, an upper class town

average municipal spending per resident: $2000
average household size: 3.3
average municipal spending per household = $2000 x 3.3 = $6600
average house selling price: $415k.

municipal spending per $1000 of housing = $6600 / 415 = $15.9
real property tax per $1000 = $12.7

2) Quincy, a middle class town

average municipal spending per resident: $1821
average household size: 3.5
average municipal spending per household = $1821 x 3.6 = $6555
average house selling price: $185k.

municipal spending per $1000 of housing = $6555 / 185 = $35.4
real property tax per $1000 = $15.9

1) Brockton, a lower class town

average municipal spending per resident: $1892
average household size: 3.7
average municipal spending per household = $2000 x 3.3 = $7000
average house selling price: $119k.

municipal spending per $1000 of housing = $7000 / 119 = $58.8
real property tax per $1000 = $16.7

As you can see here, each town has different level of federal/state/commercial/millionaire's subsidies. The rich one gets most of its revenue from property taxes. The poor one gets more from federal/state.

So comparing with $15.9, $35.4, $58.8, your parent's $28.0 is kind of in the middle.
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