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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (12626)	8/18/2003 11:19:43 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 306849

whether 14K is reasonable or not for prop tax depends on what the other taxes are. in Austin the tax on 500K prop is probably 10-12K, but there's no state income tax. thus it could be cheap or expensive depending on the person's income. thus without income tax, TX didn't have the kind of bubble cap gains windfall CA enjoyed during the late 90s and 2000. still, they managed to screw up the budget pretty good. i think it's only a matter of time before TX has income tax, and Prop 13 in CA has its days numbered.

To: GraceZ who wrote (12626)	8/19/2003 8:08:00 PM
From: fatty	Read Replies (2) \| Respond to 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.