The Finance Fiend

Getting Financial Freedom by 35!

Death and Taxes May 2, 2009

Filed under: Uncategorized — Rebecca @ 10:37 am

Today I was scheduling our house payment.  I am proud to report that we are currently doubling our monthly payment in an attempt to pay off our house faster. But, as I was looking at things I got stumped.

Then I got sort of annoyed. You see, starting this year our escrow account requires a ‘reserve.’  I don’t know if this is standard, but its about 30% of what we will be paying for the year to house taxes and insurance.  Thats fine and dandy, but I noticed that even though I gave them an extra few hundred dollars last month to help meet this reserve, its not reflected in the escrow analysis.

I also noticed that even though the city has claimed out house has dropped in value by about 5 percent, the property taxes are increasing by about that much.

In a time when Americans are feeling the squeeze of overspending and not enough jobs, why does inflation continue to rise? I haven’t noticed any new programs around town, in fact most programs are losing funding, so I don’t understand why they feel its right to tax me more. I was also sort of annoyed that the tax value had decreased, until I noticed the appraiser’s job is up for grabs.  Looks like the county appraiser in podunk Kansas makes about 70K a year (its a little more than double the average household income for the county. (the majority of residents are single, the average male income is 33K and female 19K)

So moral of the story, if the housing market crashes get a job as the local appraiser.  You will be set.

Of course the whole property tax thing has me a bit perplexed anyway.  I don’t understand of the taxes paid in April are for 2008 or 2009.  I am aware that on the valuation notices they have a disclaimer saying it doesn’t matter what they value your property at, they can make you pay whatever they want. So yeah, confusing times.  I will write another post if I figure it out.

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