the tax assessors may go with the purchase price for a while, but will probably adjust for what they feel the value to be in the next year or so. The city wants their money! The city has been reviewing many properties every year.
Typically 6 to 12 months after you purchase the home the County Tax Assessor will reasses your homes property value. This is standard practice after a home has been sold. It is also possible that you may receive a Supplental Tax bill shortly after you close escrow. It will be your responsiblity to pay for the Supplemental Taxes. Your escrow account will not pay for any SuppIemental Taxes. I recommend that you contact your Local Tax Assesor via phone during your Inspection period. Ask them if there will be a Supplemental Tax Bill after close of escrow. Ask them to verify the current property taxes. And finally, ask them if there are any delinquent taxes on the home. Make sure you inquire into this information prior to your inspection period ending. Good luck!
Yes everyone is right here...I think Megan said it well, the tax assessors may go with the purchase price for a while, but will probably adjust for what they feel the value to be in the next year or so. The city wants their money! The city has been reviewing many properties every year.
Most county assessors are smarter then you think. They won't take an unreasonably low purchase price into consideration when determining tax assessed value. They will do their own assessment and tax you accordingly.
Taxes are based upon assessed value, period. If the taxes were based on the sale price, it would be entirely unfair. For instance, if someone buys the million dollar property from grandpa for $1.00, the taxes would be mighty small. Etc...
Assessed values are derived by comparing the subject property with all the other properties in the taxing authorities jurisdiction.