Property tax suddenly increased by $4k

[Kumar Gaurav]

Hello,

I was having a gala time back in late 2021 when I managed to refinance to a lower 2.5 interest rate on my OO MF fast forward one year to 2022 my property tax suddenly increased by over $4000 (from $11000 to $15000) in my entire neighborhood. This sudden Property tax increase already wiped out more than 50% of the gains I was having from the reduced interest rate. Fortunately I am able to increase my rents

to offset this suddenly hit but I am having a hard time accepting this sudden draconian imposition of tax and trying to identify best solutions to hedge this, should I open a CD that yields 3-4% with a sum of money that generates

over $4000 per annum, are there any other options in this market that can safely earn more

to offset my prop tax? Please let me know if there any better ideas

Thanks

[Bill B.]

$15,000? Is this a $2+ million dollar property?

I didn’t see your location noted but I’m used to taxes around $2400 for $450-$500k properties. You SHOULD be able to contest the taxes. BUT, you also SHOULD have received a notice about 3-6 months in advance saying this is your proposed tax, you can protects until this date, then they will be written in stone and you will be billed. 

If you never got that notice you MIGHT have a case but usually they’ll say come back next year.