Property Tax based on purchase price or reassessment?
Post date: Apr 26, 2011 8:15:12 PM
Property valuation for tax purposes is reset at the sold price. The valuation can go up 2-3% a year max.
Taxes are on a fiscal year running July through June. Property valuations are done in January for the next tax year. This means there can be lag time before the property taxes are billed correctly. This is handled with a supplemental bill or a refund. In the meantime the homeowner pays the bill as presented.
Property that is conveyed from a parent to a child or from a child to parent keeps the existing tax base. Any other transfer will trigger a reassessment at the current value assessed by the assessor. The reassessment is usually followed by a refund but most likely a supplemental bill.