Author Topic: Primary/Legal Residence Tax Rates  (Read 2027 times)

SouthernTransplant

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Primary/Legal Residence Tax Rates
« on: January 13, 2015, 08:45:01 AM »
Hi everyone,

Apologies if this is a stupid question, but I wasn't able to find a clear answer searching the forum:

I have accidentally found myself being a landlord to a property in a different state, by virtue of moving and not being able to sell the first house.  I am being told by the county where the first house is located that my property tax rate is now 1.5x higher due to the fact that it is no longer my primary/legal residence.

I have asked several people in my new location (who own rental property locally) about this, and no one has heard of an increased rate in a case like mine.  Is this just done county by county?  Is it common?

Thanks in advance!

waltworks

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Re: Primary/Legal Residence Tax Rates
« Reply #1 on: January 13, 2015, 08:48:12 AM »
Yes, it is common. Varies by city/county, but not unusual at all. I live in a resort town where non-resident owners pay TRIPLE property taxes!

-W

Hi everyone,

Apologies if this is a stupid question, but I wasn't able to find a clear answer searching the forum:

I have accidentally found myself being a landlord to a property in a different state, by virtue of moving and not being able to sell the first house.  I am being told by the county where the first house is located that my property tax rate is now 1.5x higher due to the fact that it is no longer my primary/legal residence.

I have asked several people in my new location (who own rental property locally) about this, and no one has heard of an increased rate in a case like mine.  Is this just done county by county?  Is it common?

Thanks in advance!

jackiechiles2

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Re: Primary/Legal Residence Tax Rates
« Reply #2 on: January 14, 2015, 08:41:09 AM »
Hi everyone,

Apologies if this is a stupid question, but I wasn't able to find a clear answer searching the forum:

I have accidentally found myself being a landlord to a property in a different state, by virtue of moving and not being able to sell the first house.  I am being told by the county where the first house is located that my property tax rate is now 1.5x higher due to the fact that it is no longer my primary/legal residence.

I have asked several people in my new location (who own rental property locally) about this, and no one has heard of an increased rate in a case like mine.  Is this just done county by county?  Is it common?

Thanks in advance!

This same thing happened to me in South Carolina. My annual taxes went from $500 a year or so to $2000  per year.  The tax rate for primary residences is 4% while second homes is 6%.  You also don't get the "sales tax" credit, so that's an additional amount you're stuck with. 

CommonCents

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Re: Primary/Legal Residence Tax Rates
« Reply #3 on: January 14, 2015, 08:50:32 AM »
Yes.  My sister paid a higher rate for hers in the exact same situation.  Living in Brookline, MA, we used to get a tax exclusion of a certain amount of value of our property for living there (maybe $200k?  Not sure - DH owned it before me), which effectively cut our taxes in half.  There were more renters there than there are in our current (suburban) town.

SouthernTransplant

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Re: Primary/Legal Residence Tax Rates
« Reply #4 on: January 14, 2015, 08:52:29 AM »
Quote
This same thing happened to me in South Carolina. My annual taxes went from $500 a year or so to $2000  per year.  The tax rate for primary residences is 4% while second homes is 6%.  You also don't get the "sales tax" credit, so that's an additional amount you're stuck with.

Yep, that's where my house is also - it's definitely a significant jump.

Thanks for the answers, everyone.

jackiechiles2

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Re: Primary/Legal Residence Tax Rates
« Reply #5 on: January 14, 2015, 09:40:23 AM »
Quote
This same thing happened to me in South Carolina. My annual taxes went from $500 a year or so to $2000  per year.  The tax rate for primary residences is 4% while second homes is 6%.  You also don't get the "sales tax" credit, so that's an additional amount you're stuck with.

Yep, that's where my house is also - it's definitely a significant jump.

Thanks for the answers, everyone.

I hope it's not killing you on your profit margins like it did me.  I didn't realize the tax difference and got hit with an $1800 or so tax bill at the end of the year randomly.  Totally floored me.  You using a prop management company?