Taxing Times

I came across a press release from the National Association of Realtors® that I thought was a good reminder as the tax deadline rapidly approaches. Congress and the state of California have made a lot of changes through the stimulus package and the state budget that impact home owners. It is crucial tax information that may affect the bottom lines of all homeowners, buyers and sellers.

“Congress has passed new tax laws that will help many people who may be struggling in these challenging times,” said National Association of Realtors® President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “As the leading advocate for housing issues, NAR wants to make sure that homeowners, buyers and sellers can make full use of the tax advantages available to them.”

Some of the issues you need to explore:

• How declining home values are affecting you property taxes, and what it all means for federal returns, and if you think that your property needs reassessment here is a link to the Alameda County Assessors Office Reassessment form. This will require you to do a little homework and submit comparative market data.  
• What energy efficient home improvements can reduce homeowners’ tax bills, both the federal government and California SB1 are providing breaks. Energy Star has a list of federal tax credits. If you need more information on SB1 go to the state page.
• first-time home buyer can now take advantage of the temporary $8,000 tax credit and how it will affect buyers’ tax returns. The National Association of Homebuilders has created a website to give you the facts: http://www.federalhousingtaxcredit.com/
• How proposed changes to the mortgage interest deduction may affect homeowners, buyers and sellers at all income levels. The SF Gate wrote an editorial on the proposal.

Don’t procrastinate, and get those returns in early. April 15 will come fast. 

Tax Man -- Has come

For all you property owners, yesterday had real meaning. It is the day your Property tax(es) are due to the County without penalty. If you forgot, here is your reminder, and add a 10%+$10 penalty. Property owners can recite December 10 and April 10 as when their split payments are due, even though the county asks for the payments November and February. I normally do not look at the taxes from year to year, but it seem to be a huge jump from when we bought the house in 2000, So I dug out the 2001-2002 Tax Statement and here is what I found.

That since 2001, property taxes have increased, on my property 25.27%. That we have added an additional taxing agency and have increase "fixed charges and special assessments" from seven to 14. Almost all of the increase has come in the "fixed charges and special assessments" area.

I am a big believer in taxes, in the big picture, we get a lot for our money. But, a 25% increase over seven years is a still a lot to swallow even with the stress that government is under to meet its obligations. I looked at what we are paying for and not sure what we get for the increase. A hospital that does not take trauma victims, schools that are still under-funded, roads that lack maintenance, and list continues.

For homeowners, this makes it tougher to continue to own a home. Given wages have not increased, and in some homes one of the two wage earners has lost their job, government is asking the citizens to carry most of the water.

The subject of taxes and fees is always tough, no one likes to pay them, but we mostly like what we get in return. Individually everyone of the charges and fees has merit (although I have one fee that I believe lacks no merit) but when as you look forward another seven years can you afford another 25% increase. In this economy that is very hard thing to imagine.

Here are the Taxing Agencies (Tax Percentage of 1.134%)
County 1%
City of Alameda (Debt Service) .0245%
AUSD .0479%
Peralta ..0362%
BART .0090%
EBRPD .0100%
EBMUB .0064%

Fixed charges and special assessments ($991.30)
City Sewer
Mosquito Abatement
Mosquito Abatement "2"
CSA Vector Control
CSA Vector Control "B"
Health Care District
CSA Lead Abatement
AUSD Measure A
AUSD Measure H
AC Transit "BB"
EBMUD Wet Weather
EBRPD Trail
EBRPD Park Safety
Urban Runoff

Click Here to take survey