Taxes on former rental homes?

Asked by Andrew Marquis, 47906 Sun Sep 23, 2007

My real estate agent told me that some of the homes I was looking at used to be rentals, and that because of this I would have to pay a lot of extra taxes until the home is re-accessed in couple of years. This seems wrong to me. Does anyone know anything about this? If there is way to get around it? Or if it is simply not true at all ;)

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Damion Boyce,…, Agent, Lakeland, FL
Wed Sep 26, 2007
I agree with Pam. The taxes will be reassessed when you purchase the home. Then the taxes will be current according to the price you pay.

If you do purchase a home that was a rental, you should investigate the history of the home. Look into the possibilty of past insurance claims. Rental homes sometimes take a beating. You will want to know if there have been past insurance claims and what those insurance claims were for (ie water damage).
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Patti Pereyra, , Chicago, IL
Sun Sep 23, 2007
Hmmm, it would seem to me that it should be the opposite.

If you are looking at rental homes, the property taxes are not reflecting a homeowner's exemption.

If you were to buy one of the homes, you would file for a homeowner's exemption, and your tax bill should actually lower.

However, this will also depend upon the original purchase price of the rental. If it was many years ago, of course you an expect that your taxes will go up since assessed value is partly based on purchase price.
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Pam Winterba…, Agent, Danville, VA
Sun Sep 23, 2007
A property is reassessed at the point of sale.

The assessment is based on the purchase price. It usually takes approximately 5 -9 months to receive your new tax bill.

Here in California a homeowners exemption is only $7000 off the assessed value. Even if it was a rental property the taxes would not be that much higher.
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