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Property tax caps keep taxes artificially low on land owned by the same family for decades. When that land sells, the cap lifts and the new owner faces a sudden tax jump based on current market value, sometimes a dramatic increase.
Property tax caps keep taxes artificially low on land owned by the same family for decades. When that land sells, the cap lifts and the new owner faces a sudden tax jump based on current market value, sometimes a dramatic increase.
That's where I see it most pronounced is in those undervalued, long-held parcels. If a parcel has sold recently, has a strong sale history, then you've had a series of uncappings. But in those parcels that have been long-held by the same family, tax capping has kept those property taxes lower. And so when you buy it and that uncapping happens, you're going to see quite a jump in your property tax. Obligation.
