02-06-2008, 10:32 AM
As unmentioned, the assessed property tax amount has no bearing on the value of the actual property. One thing property tax assessed value does not cover is the quality of the building interior. Two houses built at the same time, same exact floor plan, maintained over ten years at the same level, and none having any changes to the structure, land or utilities, could be worth different sale or construction amount. One could have $2 a square foot flooring and the other $20 a square foot flooring. One could have Formica countertops and the other imported rare Italian marble. One has plastic shower enclosure, the other travertine tile. And the list goes on and on. Tax assed value really does not look in the interior value of the property
Also consider as John mentioned the issue of property tax and those who work the system. Each year when I get my tax bill, I challenge any increase as too much. And if it's reduced, I will challenge it as not being enough. Others do nothing so over the years their assessed value may be disproportionately higher than mine. Is my house worth less as far as building? Nope, I just don't want to pay anymore taxes than necessary. But in no way does it reduce the cost of my property, just what I'm paying in taxes.
Bottom line is, assessed value is really just a taxing tool for government with so many variables that it can't be used for determining the cost of a building.
Also consider as John mentioned the issue of property tax and those who work the system. Each year when I get my tax bill, I challenge any increase as too much. And if it's reduced, I will challenge it as not being enough. Others do nothing so over the years their assessed value may be disproportionately higher than mine. Is my house worth less as far as building? Nope, I just don't want to pay anymore taxes than necessary. But in no way does it reduce the cost of my property, just what I'm paying in taxes.
Bottom line is, assessed value is really just a taxing tool for government with so many variables that it can't be used for determining the cost of a building.