One house assessed at $874,000 in 2008 has sold for $2.1 million two previously, a difference of 140 per cent, meaning the new owner would be wildly under-taxed. In another case, a house assessed at $330,000 in 2008 sold for $100,000 six months later, a difference of 70 per cent.
Property Taxes Assessments: Guesstimates at best!
December 6, 2010
Property taxes, they’re a major pain in the a*$. Everyone has to pay ’em– and they’re based on the mildly worrisome estimate of some bureaucrat who may (or may not) have a good idea of where the market actually stands.
And while citizens have had this on their mind for a loooonnnggg time, Ontario Auditor General Jim McCarter agrees: property tax assessments are a crapshoot.
According to the Toronto Star:
Maybe you’re thinking “Okay, but those are just specific examples taken out of context– what about the overall picture?”
Well, those figures are just as troubling in my opinion. One in eight of the 11,500 homes sampled across the province showed a 20% difference between the market price and the assessed value. WOW!
I, for one, and glad this issue has been brought to the attention of the public. I mean, come ON! Some people are really getting hosed, and it’s entirely unfair. Don’t get me wrong, I’m all for taxes that are fair. But these really aren’t. They just aren’t.