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Tax question regarding land.

By FortWayne   Follow   Sat, 26 Nov 2011, 8:24pm   2,471 views   24 comments
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I've found some land I'm interested in purchasing, it is zoned for commercial use which is what I need. However the taxes on it stump me a bit. Assessor value for it is much much higher than the sale price. If I purchase it, land is not improved at the moment, which taxes do I pay on it?

I can buy it for $4,000. But assessor tax value is just over $200,000.

Thanks in advance.

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1. FortWayne Follow Befriend (13) 103 threads 3,768 comments

   1   9:00am Sun 27 Nov 2011   Share   Quote   Permalink   Like   Dislike   70 views, and no one knows?

2. Nomograph Follow Befriend (1) 104 threads 2,851 comments

   2   11:29am Sun 27 Nov 2011   Share   Quote   Permalink   Like   Dislike

3. B.A.C.A.H. Follow Befriend (6) 5 threads 2,359 comments

   3   11:46am Sun 27 Nov 2011   Share   Quote   Permalink   Like   Dislike   4,000 or 200,000 either way, property taxes and ever increasing tuition (and student loans) keep funding those gilded bennies for Professors in CSU and UC. How about going open kimono and telling us all what you really think of us, Professor?

4. Nomograph Follow Befriend (1) 104 threads 2,851 comments

   4   11:57am Sun 27 Nov 2011   Share   Quote   Permalink   Like   Dislike   FortWayne says 70 views, and no one knows? One think I *do* know is that you've never owned property. If you had, you would know that tax policies vary from state to state, and you would have mentioned what state the property was in. Your story has evolved over time; you first claimed to own multiple rental properties, then later you stated you only own a single condo (with bars on the windows) that you live in, and that landlords are parasitical. Now you claim to be ready to purchase a property for 5% of it's market value. My advice: stick to sweeping up brake dust...sometimes is best to dance with the one that brung ya. B.A.C.A.H. says those gilded bennies for Professors in CSU and UC. Professors of science, engineering and medicine bring in big bucks to the UC system; we actually subsidize those 'gilded bennies' to a much greater degree than most folks.

5. ed5345 Follow Befriend 1 comments

   5   9:22pm Sun 27 Nov 2011   Share   Quote   Permalink   Like   Dislike   you pay on assessed value. no one cares what you paid.

6. elliemae Follow Befriend (25) 413 threads 6,983 comments Saint George, UT elliemae's website

   6   10:41pm Sun 27 Nov 2011   Share   Quote   Permalink   Like   Dislike   FortWayne says 70 views, and no one knows? Nomo was eloquent in his response. IMHO the problem with viewing retirement & such as "gilded bennies" negates the fact that these scientists could go elsewhere and make more money than they do in academia. They could afford to pay for their own "gilded bennies," and the students would be worse off.

7. Nomograph Follow Befriend (1) 104 threads 2,851 comments

   7   7:27am Mon 28 Nov 2011   Share   Quote   Permalink   Like   Dislike   elliemae says Nomo was eloquent in his response. My response may have sounded harsh, but when I saw ChrisLA/EncinoMan/FortWayne make post after post trying to convince Kevin that he was about to lose his job and have no future, I realized this is the kind of negative loser that needs to be called out. He's done the same to others since, while having absolutely no idea what these folks actually do and knowing nothing about their careers. I have no tolerance for this type of loser; they try to bring everyone around them down to their level, while breathing air that productive people might need one day.

8. TechGromit Follow Befriend (6) 85 threads 969 comments 44 male Egg Harbor City, NJ

   8   10:15am Mon 28 Nov 2011   Share   Quote   Permalink   Like   Dislike   ed5345 says you pay on assessed value. no one cares what you paid. I agree, you pay the assessed value on the property. You could try and fight the assessment and have it lowered, but you have to have documentation of other commercial properties in the area that are similar size and accessed for less money. Face it, your never going to get a 4k assessed value no matter how many appeals you file. As for the 70 views and no reply thing, there are a lot more readers than posters. It's something like 10 to 1 easily. I guess you could say us "posters" help shape the opinions for 90% of the population.

9. zzyzzx Follow Befriend (9) 416 threads 4,138 comments Baltimore, MD

   9   8:06pm Mon 28 Nov 2011   Share   Quote   Permalink   Like   Dislike   ed5345 says you pay on assessed value. no one cares what you paid. It works the same way with property tax on cars in some states as well.

10. zzyzzx Follow Befriend (9) 416 threads 4,138 comments Baltimore, MD

    10   8:07pm Mon 28 Nov 2011   Share   Quote   Permalink   Like   Dislike   TechGromit says you pay the assessed value on the property. You could try and fight the assessment and have it lowered, but you have to have documentation of other commercial properties in the area that are similar size and accessed for less money. Face it, your never going to get a 4k assessed value no matter how many appeals you file. I agree with the above quoted text.

11. FortWayne Follow Befriend (13) 103 threads 3,768 comments

    11   7:34am Tue 29 Nov 2011   Share   Quote   Permalink   Like   Dislike   TechGromit says ed5345 says you pay on assessed value. no one cares what you paid. I agree, you pay the assessed value on the property. You could try and fight the assessment and have it lowered, but you have to have documentation of other commercial properties in the area that are similar size and accessed for less money. Face it, your never going to get a 4k assessed value no matter how many appeals you file. As for the 70 views and no reply thing, there are a lot more readers than posters. It's something like 10 to 1 easily. I guess you could say us "posters" help shape the opinions for 90% of the population. Thanks partner. I never knew unimproved land was assessed the same way improved was. For some reason it would be different. It's good to know now.

12. FortWayne Follow Befriend (13) 103 threads 3,768 comments

    12   7:36am Tue 29 Nov 2011   Share   Quote   Permalink   Like   Dislike   Nomograph says I have no tolerance for this type of loser; Nomo, I'm not the reason your welfare check is late as usual you self righteous welfare case prick.

13. TechGromit Follow Befriend (6) 85 threads 969 comments 44 male Egg Harbor City, NJ

    13   8:09am Tue 29 Nov 2011   Share   Quote   Permalink   Like   Dislike   FortWayne says Thanks partner. I never knew unimproved land was assessed the same way improved was. For some reason it would be different. When I get my property assessment in the mail from the township every year. It has an assessment for the land and an assessment for the improvements (ie. the house) and a total assessment.

14. elliemae Follow Befriend (25) 413 threads 6,983 comments Saint George, UT elliemae's website

    14   6:50am Wed 30 Nov 2011   Share   Quote   Permalink   Like   Dislike   FortWayne says Nomo, I'm not the reason your welfare check is late as usual you self righteous welfare case prick. He's on welfare? Unless he's been talking out his ass, he's a physician-educator. If his salary is welfare, I'm quitting my job and signing up. (Oops, quit the job and got another, too late). Nomograph says My response may have sounded harsh... Sometimes you do sound kinda harsh, but you're usually spot on. You haven't made the kind of comment that makes me spill my coffee all over myself lately. I miss those days, although my dry cleaning bills have decreased greatly.

15. TPB Follow Befriend (1) 65 threads 1,209 comments

    15   7:43pm Fri 2 Dec 2011   Share   Quote   Permalink   Like   Dislike   Nomograph says I have no tolerance for this type of loser; they try to bring everyone around them down to their level, while breathing air that productive people might need one day. Ladies and Gentleman a Doctor. Illegitimi non carborundum! Brah!

16. elliemae Follow Befriend (25) 413 threads 6,983 comments Saint George, UT elliemae's website

    16   12:07am Sat 3 Dec 2011   Share   Quote   Permalink   Like   Dislike   The GOP says Ladies and Gentleman a Doctor. Not sure what point you were trying to make - but a well placed comma might possibly have assisted you in your endeavor. I'm sure that it broke dear Nomo's little heart when you called him a doctor. Hopefully he'll recover some day and be able to move on with his life. FortWayne says 70 views, and no one knows? It wasn't that no one knew, it was likely that every one of those seventy viewers realized that the information you requested is readily available on every property assessor's website. There have also been multiple articles about this issue since the housing bust started.. Combine that with common sense...

17. FortWayne Follow Befriend (13) 103 threads 3,768 comments

    17   3:15pm Sun 4 Dec 2011   Share   Quote   Permalink   Like   Dislike   elliemae says Sometimes you do sound kinda harsh, but you're usually spot on. You haven't made the kind of comment that makes me spill my coffee all over myself lately. I miss those days, although my dry cleaning bills have decreased greatly. You know ellie, you and nomo need to stop this mating dance you are subjecting us to and get over with it.

18. Nomograph Follow Befriend (1) 104 threads 2,851 comments

    18   3:54pm Sun 4 Dec 2011   Share   Quote   Permalink   Like   Dislike   FortWayne says FortWayne Get back to work.

19. Dan8267 Follow Befriend (16) 769 threads 7,714 comments Boca Raton, FL Premium

    19   8:46pm Sun 4 Dec 2011   Share   Quote   Permalink   Like (1)   Dislike   Protected   I don't know about Texas land tax laws, and I'd advise asking a real attorney, but I suspect you have to pay taxes based on the appraised amount. I would make the appraisal amount of $4000 be a condition of the sale, so you have an out if you can't get a reasonable re-appraisal. As appraisers are simply deceptive tax collectors, they will always over-appraise a property. I'd ask a lawyer about suing the county for appraisal fraud. The threat alone could cause them to re-appraise. Of course, I'm assuming you're not really getting the land for a mere 2% of it's fair market value. You might be getting a good discount, even 30%, but that's a far cry from the appraisal amount. And if the county honestly believes the land is worth that much, tell them to buy it for that much in court. If I were on a jury, I'd be convinced after that.

20. elliemae Follow Befriend (25) 413 threads 6,983 comments Saint George, UT elliemae's website

    20   6:32am Mon 5 Dec 2011   Share   Quote   Permalink   Like   Dislike   Dan8267 says And if the county honestly believes the land is worth that much, tell them to buy it for that much in court. If I were on a jury, I'd be convinced after that. These things rarely make it to a jury, if ever. You'd spend thousands in legal fees to try to make a point - and would probably lose in the end. Dan8267 says I would make the appraisal amount of $4000 be a condition of the sale, so you have an out if you can't get a reasonable re-appraisal. As appraisers are simply deceptive tax collectors, they will always over-appraise a property. I'd ask a lawyer about suing the county for appraisal fraud. The threat alone could cause them to re-appraise. Most sale contracts contain a statement about the property appraising for sale price or more, so people are stuck with a property worth substantially less than the sales price. this guy is going to pay higher taxes because it's a commercial property rather than a primary residence. I have a hard time believing that he can buy a $200k property for $4k; something doesn't add up. FortWayne says You know ellie, you and nomo need to stop this mating dance you are subjecting us to and get over with it. I'm a fan of Nomo's because of his asshole snarky comments, no biggie. He says things that I'd say if I didn't think before I spoke... For example, he has pointed out that you appear to be grossly uninformed about many things - and you could remedy this by researching the info a little but choose to ask people anonymously on an interwebs forum. I'll second that. Nomograph says I have no tolerance for this type of loser; they try to bring everyone around them down to their level, while breathing air that productive people might need one day. This is a point upon which I disagree; your lungs are breathing in the asbestos brake dust and churning out cleaner air to be converted into oxygen by trees. So you do have a purpose after all.

21. FortWayne Follow Befriend (13) 103 threads 3,768 comments

    21   8:35pm Mon 5 Dec 2011   Share   Quote   Permalink   Like   Dislike   Dan8267 says I would make the appraisal amount of $4000 be a condition of the sale, so you have an out if you can't get a reasonable re-appraisal. As appraisers are simply deceptive tax collectors, they will always over-appraise a property. I'd ask a lawyer about suing the county for appraisal fraud. The threat alone could cause them to re-appraise. That's a good idea, thank you Dan!

22. TechGromit Follow Befriend (6) 85 threads 969 comments 44 male Egg Harbor City, NJ

    22   2:18pm Tue 6 Dec 2011   Share   Quote   Permalink   Like   Dislike   FortWayne says That's a good idea, thank you Dan! I advise you to ignore Dan's advise. I don't think he knows what he's talking about. elliemae says I have a hard time believing that he can buy a $200k property for $4k; something doesn't add up. Could be an issue of liability. If there was a gas station there before and the ground is polluted somehow. The seller would be happy to sell it for 4k, the buyer would have to pay for any clean up costs before they could build anything. Bet you could buy a couple thousand acres in Chernobyl for that, they be happy to sell it to you.

23. elliemae Follow Befriend (25) 413 threads 6,983 comments Saint George, UT elliemae's website

    23   8:13am Wed 7 Dec 2011   Share   Quote   Permalink   Like   Dislike   TechGromit says Bet you could buy a couple thousand acres in Chernobyl for that, they be happy to sell it to you. I'm already ahead of you, techie. I bought the Chernobyl land April 25, 1986 - it was higher priced at the time, but they had cheap power and days since any workplace accidents. I've tried to sell since, but for some reason no one is interested in buying.

24. TechGromit Follow Befriend (6) 85 threads 969 comments 44 male Egg Harbor City, NJ

    24   12:50pm Wed 7 Dec 2011   Share   Quote   Permalink   Like   Dislike   The whole problem with reporting work place accidents in the Soviet Union at the time, was it was a quick ticket to a Siberia work prison. Nah better off not reporting that leaking radioactive fluid.