Hello! I'm looking at an attractive multifamily in Reservoir Hill, but have concerns about possible substantial tax increase. The seller owned the property for 15 years and current tax they pay would double (to $16k) if reassessed at the purchase price. I'm not sure why it's still that low and wasn't caught up over the years. Assessment office doesn't seem to have clear guidelines on how they determine value base. Several professionals (attorneys, tax) say that it won't be assessed as high as purchase price. This is the deal that makes great sense or no sense at all depending on the tax numbers. I would appreciate any input from those who has experience with similar situations.
If its your primary residence you could use the homestead tax credit to lock it. If not you might get caught if its really under assessed but I dont think the city looks into it that hard considering all their other problems. What part of reservoir hill is it? That neighborhood really fluctuates.
Druid Park and I-83 corner. Do you have any experience/knowledge on how they look at the properties during reassessment in Baltimore? Do they just mainly continue with the previous assessed value (because there's more important things they have to focus on) or actually try to adjust values according to the market? In this case, tax numbers could be a deal breaker and change the bottom line quite significantly.
If nothing changes in the house, no updates, no permits pulled , no addition, I doubt it will double right after the purchase based on the purchase price. Obviously there is no guarantee, but purchase price is not the only determination factor to it.