Thursday, January 10, 2008

Death and taxes January 2008

We actually have nothing, good or bad, to say about death except that it's inevitable. Just like taxes.
We just paid our property taxes, having heard rumblings from friends about large increases this year. We thought maybe it was just in the rich areas up north, but no, the increase has hit our centro area as well.
We have yet to be billed -- sometimes they bring us one instead of two bills and some years, no bills at all. The property tax assessments are not mailed, but get put into our mail box randomly. So to be safe, we are proactive about paying our taxes. And, yes, this year, the costs have doubled for the properties we own.
We are among the few people we know who put the actual purchase price on our documents when we bought the two properties -- most people value houses well below what they pay, for no apparent reason since there is no capital gains tax if you live in the house when you sell it. That means that the only reason people falsify purchase prices is to avoid paying more in property taxes (an exception to this is if you've bought your house through a Mexican corporation and then there is a reaon to lie about the purchase price -- a 30% capital gains tax for the corporation upon sale).
Our assessed value has only just caught up to the purchase prices two years later, and actually exceeded one of the purchase prices. These are, of course, still well below market value since our remodeling is not reflected at all (valuation is about $140,000 US). May it always be so!!
Our property taxes are not due until the end of February. But by being so forthcoming with our money and paying this month, we saved 10% of the property tax bill.
Last year, for both parts of the house, we paid 1067 pesos or around $100 US. And this year, after the discount, we paid 2198 pesos or about $210 US. HARD to complain!!! Especially when we remember paying Glenview taxes not so long ago!
We have hopes that this increase will not only benefit the municipality by increased revenues and therefore better services for those who need them, but also that some of the homeowners whose property is run down and crumbling, but who have held on to it since it hardly costs them anything in taxes to do so, will be encouraged to sell out to interested gringos who will rehabilitate the properties.
Imagine being OK with paying increased property taxes!!!!!

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