Do I have to answer these questions? ...the tax man cometh

Wildwood Flower · #1 05/29/07, 02:01 PM

We closed on a small property back in our hometown last month. It's just a little 1976 mobile home on a lot, but it's in excellent condition and a good price for us.

Before we purchased it, I asked what the taxes were on it. $287/yr. Okay, that's reasonable.

Well, today I get a letter in the mail from the county assessor there saying that they need to "help make sure that you do not pay more than your fair share of property taxes." Yea, right.

They know how much we paid for the property, they want to also know if we traded anything for it...

What was the down payment? Seller's contract amount? new loan amount?
Cash amount ? Interest rate? Asuumption....?

Was any personal property included in the sale?

If yes, what was it?(list)_________________________________

Do you consider the purchase price to be market value? too high? too low?

Was a manufactured home included in the sale?

Get this one!!!: Are you related to the seller?

Have buildings or other structures been added, removed, or altered since the date of sale?

I'm not answering this letter!!! And if they come to my door, they may NOT come in!!!

Now I am wondering if they will raise the taxes significantly? Heck, I hope not.

fordy · #2 05/29/07, 02:21 PM

Quote:

Originally Posted by Wildwood Flower

We closed on a small property back in our hometown last month. It's just a little 1976 mobile home on a lot, but it's in excellent condition and a good price for us.

Before we purchased it, I asked what the taxes were on it. $287/yr. Okay, that's reasonable.

Well, today I get a letter in the mail from the county assessor there saying that they need to "help make sure that you do not pay more than your fair share of property taxes." Yea, right.

They know how much we paid for the property, they want to also know if we traded anything for it...

What was the down payment? Seller's contract amount? new loan amount?
Cash amount ? Interest rate? Asuumption....?

Was any personal property included in the sale?

If yes, what was it?(list)_________________________________

Do you consider the purchase price to be market value? too high? too low?

Was a manufactured home included in the sale?

Get this one!!!: Are you related to the seller?

Have buildings or other structures been added, removed, or altered since the date of sale?

I'm not answering this letter!!! And if they come to my door, they may NOT come in!!!

Now I am wondering if they will raise the taxes significantly? Heck, I hope not.

................My basic response too them would BE...."KMA"....!! If they have access too the sales contract then that's all they need to know , period . , fordy...

End of the Road · #3 05/29/07, 02:32 PM

Yeah I would toss that in the trash!

Iddee · #4 05/29/07, 02:43 PM

If it is like the one we get in NC, it says at the top "We are required to collect this information". It does NOT say you are required to provide this information. I toss each one of them in the garbage. They can do their "required" chores another way.

anniew · #5 05/29/07, 02:56 PM

Before you get snippy with them, as they are only doing their job, why not try to understand the questions. Some of them could help lower the taxes, somewould raise them. How else are they to be fair not knowing some information?
For instance if you paid for additional personal property, that could be deducted from the amount of the sale to establish what the value of the land is, since the personal property is not real estate. If you were related to the seller, you may have been offered a lower than market price. Taxes are based on selling price/market price and to be fair to everyone, they need more information.
You can refuse to answer (probably--don't know the laws in your state/county), and they'll just have to guess. I'd imagine if they have to guess, they'd guess on the high side.
Once it is re-assessed, you can go look at how they assessed you. For instance if it says you have a basement and you don't, you need to tell them that so they can take it off the assessment.
So, my advice is to not get snippy with them, as it will only make any efforts you use to try to reduce the taxes that much harder. Be nice and if you get a higher than market assessment along with comparing it with similar places, then ask for a review and/or appeal the decision.
Ann

Farmerwilly2 · #6 05/29/07, 03:12 PM

Seems to me that the tax burden in KY is less if buying property from family. I know when buying a car from my brother the sales tax was not assessed because of the sale withing family, may be the same thing with real estate. My guess is this is one of the reasons folks are always advised to consult experienced people when dealing with real estate. As far a the state of the property, any additions or subtractions from it, all will have a bearing on the assessed value. Hey, your call, just don't come back whinning if you end up paying more in taxes because you didn't take the time to get a good assessment.

porboy298 · #7 05/29/07, 03:14 PM

I've always went down and visited with them before hand and most times take the contract with me. Almost always I pay much less than they had it listed on the rolls.
Bill

agmantoo · #8 05/29/07, 04:27 PM

That tax man is not a problem. He is trying to extablish what the new owner will pay and to establsih comps for others in the area. THE TAX MAN from the IRS is the one you do not want come knocking!

SHELBY · #9 05/29/07, 05:02 PM

It can take over a year to get your assessment back down if they guess too high.

And you will not be reimbursed for the overpayment of tax if they lower the tax, after you appeal.

GrannyG · #10 05/29/07, 06:15 PM

I do not answer those. The records on file have all the information they need as far as I am concerned. I circular file them. There should be a place on there that indicates it is not mandatory that you answer the form, they just like to compare notes on what you say vs what the records show.

Sand Flat Bob · #11 05/29/07, 06:56 PM

Quote:

Originally Posted by anniew

Before you get snippy with them, as they are only doing their job, why not try to understand the questions. Some of them could help lower the taxes, somewould raise them. How else are they to be fair not knowing some information?
For instance if you paid for additional personal property, that could be deducted from the amount of the sale to establish what the value of the land is, since the personal property is not real estate. If you were related to the seller, you may have been offered a lower than market price. Taxes are based on selling price/market price and to be fair to everyone, they need more information.
You can refuse to answer (probably--don't know the laws in your state/county), and they'll just have to guess. I'd imagine if they have to guess, they'd guess on the high side.
Once it is re-assessed, you can go look at how they assessed you. For instance if it says you have a basement and you don't, you need to tell them that so they can take it off the assessment.
So, my advice is to not get snippy with them, as it will only make any efforts you use to try to reduce the taxes that much harder. Be nice and if you get a higher than market assessment along with comparing it with similar places, then ask for a review and/or appeal the decision.
Ann

I agree with this. Don't know about Oklahoma, but here, you are required by law to report things like above, if not the tax assessor will place a value on the property and then it is up to you to prove why that value is too high. So think it over before you do anything.

Bob

Maura · #12 05/29/07, 07:12 PM

I don't think they are being out of line. As a former tax assessor, IMO, the assessor (or county) is trying to do a good job. If you bought a MH, it has probably decreased in value over the past ten years, rather than increased in value, as a house would. I have done mass reappraisals where we go out and measure every building and get accurate information on same. I did one unit where an entire neighborhood was over valued because the person obviously just eyeballed the houses instead of measuring them. They were all written up as being 8 feet wider than they actually were. Multiply 8 by 40 and see what you get. I've also seen double wides priced as stick built homes, and mh on blocks priced as being on crawl.

As Anniew wrote, it is helpful to know if there is more going on than the deed shows. The deed could be filed as a balloon at the end of a land contract. It could be a settlement between heirs. The price on a deed may unfairly reflect value because appliances were included in the sale (i.e. washer and dryer). Answer the questions and mail it in. Wait a month then go see the assessor to see how he or she came to the conclusion of fair market value.

Hoop · #13 05/29/07, 07:30 PM

The tax assessor is trying to do their job. If you toss the thing in the garbage, they have to make a guess as to the correct valuation, using what little information they have at their disposal.

If the tax assessor isn't allowed in your house, they must guess. Human nature being what it is......expect the tax assessor to figure you're hiding something. High assessments then take place.

If you don't want the tax assessor in your house, but don't want a high assessment, be honest with them. Tell them you are a paranoid loonie, that thinks there is always some plot taking place to deprive you of your assets. This is something that they understand.

porboy298 · #14 05/29/07, 07:37 PM

I bought 10 acres 6 years ago and it was on the tax rolls at $22.000. I paid
$10,000. for it. I took along the contract to the tax office and they figured that the price I paid was fair market value and the tax was adjusted to what I paid for it. They have always worked with me here.

farminghandyman · #15 05/29/07, 07:42 PM

Life is so much fun, you buy some thing and then get to rent it from the Government.

Maura · #16 05/29/07, 08:03 PM

I'd like to comment on your asking what the taxes are. This is not the question you want to ask. You want to ask what the mills are. You can then multiply your sale price by the mills, this will give you your taxes.

I lived in a small town that was becoming a resort area. The lakefront property tripled in value in only a few years. People who asked the tax question were very surprised when they received their tax bill, as the bill was figured out from the recent sales analysis. For instance, cottage X was valued for assessment at $70,000. We reappraised the property, bringing the assessment value to $175,000, the cottage is then sold for $200,000. Granted, the AV is lower than the actual sale price, but considerably higher than the undervalue of $70,000. Many assessors simply use the sale price and revalue parcels as they sell (this is called following the sales and is not proper practice), in which case the AV would have been $200,00.

fordy · #17 05/29/07, 08:03 PM

................Our tax authority , as far as I'm concerned is nothing but a bunch of legalized thieves !!! They have been given a License too Steal , by the state legislature and they do , Just that . They even manage too spend public tax money on hiring Lobbyists at the state level and never bothered to ask "US" if it is OK . I have No use for them or their way of carrying out their mandate . , fordy...

Junkmanme · #18 05/29/07, 08:12 PM

It's PROBABLY just a "form letter" that they send to all new owners. I would "trash it".
THEN, IF they come around, personally, to ask, I would treat them very well and cooperate judiciously.

It's probably just a "form letter". JUNK it!

just my opinion (no sense doing THEIR work for them!)

Bruce

anniew · #19 05/29/07, 08:18 PM

what is your solution to getting money to run the government, fordy? Not do you think the government should be decreased, but how do you propose that they get the funds to run it right now while you work on decreasing their costs?
Everyone gripes but few work toward solutions.
Ann

fordy · #20 05/29/07, 08:36 PM

Quote:

Originally Posted by anniew

what is your solution to getting money to run the government, fordy? Not do you think the government should be decreased, but how do you propose that they get the funds to run it right now while you work on decreasing their costs?
Everyone gripes but few work toward solutions.
Ann

................I don't have a problem with the concept of assessing taxes to fund the necessary functions of government , BUT , these folks are , essentially , Unaccountable too any significant challenge by a taxpayer short of hiring an attorney . They grant large corporate entities tax abatement With basically NO purview or Review by the Public in an Open forum . All the while the regular taxpayer has virtually NO sayso on how these abatements are decided or implemented . This , IS NOT , how a representative form of government is supposed too work . , fordy...