Paying taxes when your home has lost most of it's value

**Darlene** · 01-19-2012, 09:33 AM

Would you pay your property taxes as assessed at full market value if your home has lost 50% or more in value due to a major disaster? We figure we lost about 80% some have no house at all and are expected to pay. For the first time in our lives we are "deadbeats". We haven't paid our school or town taxes. The tax bill is growing with late fines added. We don't mind paying our fair share but will not pay for full market value when we don't have that. Can you imagine being someone who lost everything, still has a mortgage on a house that is "Poof" gone, no flood insurance and still has to pay full taxes?! My heart goes out to those people.

To be reassessed it takes NY legislature to pass a bill. They have done so and it's come down to the local governments schools etc to decide if they will give us some tax relief. They are between a rock an a hard place because they have no money to cover their losses if they help the homeowners. It's all such a mess and I don't know what will happen.

I don't know if we are alone in refusing to pay, I assume not. Maybe some are paying but we can't/won't when it's based on something we don't even have anymore. I know eventually we will have to pay if the house ever sells but until then we are fighting it. Oh we have written our legislatures asking for help months ago.
What would you do?

**Spirit Deer** · 01-19-2012, 10:09 AM

I would pay it. It's going to cost more in the long run if you don't, not just in money but in stress and aggravation. If or when there is some tax relief, they'll probably issue refunds.

It always takes a while for real estate taxes to catch up, at least here it does. They re-assess here every four years, so if we build something in the first year of that cycle, it takes another three years before our taxes go up. It's the same if things go down. I expect with all the damage in your area, the tax assessors are probably overwhelmed.

Good luck. It's a difficult situation.

**Greebo** · 01-19-2012, 10:21 AM

Well, do you want to KEEP the house?

If so, then pay the taxes but file an appeal.

Not paying taxes = BYE HOUSE.

(Which is how my Grandparents acquired an 80 acre farm in the midst of the depression - they paid the taxes someone else didn't)

**Darlene** · 01-19-2012, 10:35 AM

Thanks for your words of wisdom and telling me what you would do.
We are hoping our "house" will sell and that this will all be resolved then or before. Sure we could pay and let them have our money and reimburse us if/when they get around to it. Paying taxes on 100% when you should only be paying based on something worth 20% ...I guess this is just our way to show the powers that be that we don't agree.

**Greebo** · 01-19-2012, 10:39 AM

Well if you don't mind losing the house, you can go ahead and not pay, but I'm just saying the potential consequences can be pretty dang severe...

**Darlene** · 01-19-2012, 11:08 AM

They will get paid but just not now. Here's a link that shows where things are at now. We are hoping our local governments opt in.
Property taxes and assessments

**bonnotsm9** · 01-19-2012, 11:23 AM

That's awful. Here we can call the county assessor and ask for a reassessment at any time. The only restriction being they don't do them during deer season.

Could you pay a little on each bill to show a good faith effort to pay? Maybe if your local govt. opts in later, they will forgive the penalties and interest that have accrued. You'd think they'd know you aren't in a position to pay since your area flooded.

**mombottoo** · 01-19-2012, 12:55 PM

This part caught my attention:
"Procedure
•To receive relief, the property owner in a taxing jurisdiction that has adopted the provisions must submit a written request to the assessor along with supporting documentation.
•No specific form is required but documentation should be included with the request if it is available.
•The assessor determines the percentage reduction in value.
•If warranted, the assessor reduces the taxable assessed value.
•Upon making a determination, the assessor mails written notice to the property owner and the participating municipality.
•If a reduction is granted and taxes have not yet been paid, then the tax liability will be reduced; if taxes have already been paid then the taxing jurisdiction will refund the appropriate amount.
• A property owner who is dissatisfied with the assessor's determination may file a complaint with the Board of Assessment Review, which shall reconvene upon 10 calendar days written notice to the property owner and assessor to consider the matter.

Deadlines
•The deadline for taxing jurisdictions to opt into the program is January 23, 2012 (45 calendar days after the act was signed by the Governor).
•The deadline for a property owner to apply for assessment relief is March 8, 2012 (90 calendar days after the act was signed by the Governor)."

Has your area opted in? If they have then the next step is up to you.

**Darlene** · 01-19-2012, 01:09 PM

No, they haven't yet and we are so hoping they do. They have until the 23rd of this month...
If they do opt in how do the municipalities make up the lost revenue? It's not a good situation for anyone.

**frugalfranny** · 01-19-2012, 02:59 PM

Originally Posted by Darlene

[COLOR=navy]
[COLOR=navy]To be reassessed it takes NY legislature to pass a bill. They have done so

Yeow.......that DOES suck.........and I thought our's was bad.

If something "favorable" happens I would pay..........not sure what I would do if you got stuck with the full bill.......would depend on other factors.........how much land.......hit on credit.......etc.

We can't be "re-assessed at any time" like another poster said........and it is up to us to fight it.......but we can.

I hope something FAVORABLE gets done..........good luck!!

**Grayce** · 01-19-2012, 04:23 PM

I'd pay the taxes and hope the legislation goes through, and wait for a refund. Having them add late fees and fines just adds to the bill. I certainly wouldn't want to risk losing my property for not paying taxes.

**marjorie** · 01-19-2012, 04:53 PM

I'd challenge the assessment, and have m neighbors do the same. I got mine changed years ago. You need to support the challenge by showing other houses in similar neighborhoods, age, type of construction and bedrooms, bathrooms, etc. In the meantime I'd decide on my priorities.

**FrabjousDay** · 01-19-2012, 06:54 PM

I'd pay, but I'd also be making noise with the local officials tasked with the opt-in decision.

**frugalfriend** · 01-19-2012, 07:08 PM

Darlene, have you talked to your neighbors and people there in the same situation? What is the concensus?

**Beejay** · 01-19-2012, 07:35 PM

Originally Posted by Greebo

Well, do you want to KEEP the house?

If so, then pay the taxes but file an appeal.

Not paying taxes = BYE HOUSE.

(Which is how my Grandparents acquired an 80 acre farm in the midst of the depression - they paid the taxes someone else didn't)

Unless you want to lose your home in a county-held tax sale, PLEASE PAY THESE TAXES !!!