Mike’s Real Estate Show

I took this quote from a blog regarding the plight of the homeowner in New Jersey and New York.

“Homeowners in western New Jersey’s Hunterdon County. Last year, the median yearly property tax bill amounted to a whopping $7,999 here, according to the Tax Foundation, a nonpartisan research group in Washington, D.C, which compiled data based on 2006 figures.

Things aren’t much better in New York. In Nassau County, Long Island, the median homeowner drops $7,706 a year, while up north, Westchester County residents pay $7,626 a year.

In fact, New York and New Jersey residents can expect to pay up to $6,500 more in yearly property taxes than the national average. The reason: The region’s homes are among the priciest in the country, and tax rates there are high as well.

“They spend more on government [in the Northeast],” says Gerald Prante, an economist at the Tax Foundation. “In New York and New Jersey, they’re high on every tax.”

In California you will be most likely paying 1.1% to 1.25% of your Purchase Price in yearly property taxes. Your Property tax bill, according to Proposition 13 (The grand-daddy of all Property Tax Relief bills), then only goes up 3.5% a year based on your PAYMENT AMOUNT —NOT—Your Assessment!! In New Jersey it seems everytime they need money they go to the homeowner and raise his/her tax bill. Can’t do that in California!! We have “special assesments” which must be approved by a 2/3 vote of the electrorate which it effects. Some areas have special “Mello Roos” areas which are special assessment’s for Schools. These are disclosed to you via our statewide disclosure laws and also appear in your title search.

However, if you’re moving about IN California the Tax Bill can dramatically increase. In my area homes sell for $650-1,000,000. I’ve been here for many, many years and have a very small tax bill. If one of my neighbors sells his home the new tax bill of the NEW home owner is going to be 1.1% of the sales price or at $650,000 approximately $6,500.00! The Proposition 13 tax relief bill had the nickname the “stay put” initiative! My tax bill is a fraction of the $6,500 but my new neighbor shares the same services I do but pays 3-4 times as much.
If you come out from New Jersey and buy a home in the $750,000 price range your yearly property Taxes are going to be over $7,500 which is what the average tax payer pays in New Jersey. But what are you getting for this tax bill? In my area $750,000 will get you a very nice 4 bedroom home of around 2,500-3000sqft in a great area with a 6,000sqft lot.
I’m not familiar with New Jersey and the prices there. You’ll need to weigh the difference. All I can tell you is in our area, Northern California, Sonoma County, Wine Country, we can play golf all year long, have NO SNOW, decent rain and really BAD TRAFFIC!! You can google Sonoma County Tax Assessor for more information. You can even ask for a reduction via Proposition 8!!