If I am purchasing a house that is in good shape, but has very low property taxes, what are the odds that the city will re-assess and raise them right after I purchase the property? Is there a limit on how much they can raise them? Wondering how others budget for that possibility?
As always, thanks in advance for any responses.
When I was arguing my property taxes this year they told me every pacrel in Cleveland would be getting reassessed this year and new proposed taxes will be out in August
The odds are high. It may not be immediate though. I believe Cuyahoga county reassesses properties every 2 years. This doesn't necessarily mean the taxes will go up, just that they'll be reassessed. I typically look into the property tax and transfer records, which are all online to see what the property is currently assessed at. If I see that the property was purchased a few years ago for much less than I plan on paying, than there's a good chance that the county will see that and raise property taxes the next time they reassessed. I would also look to see what exemptions are currently on the property tax bill. Exemptions like the Homestead Exemption will go away once an investor purchase, so definitely bake that into your numbers. I'm no expert, but this has been my process. It seems to me like Cuyahoga County loves taxing investors so I always err on the side of caution with property taxes. Below is a link to the county property tax rates.
Thanks Kyle - this is super helpful. Some of the properties seem to go quite a bit up and down year over year, so this will be helpful.