Millionaire wants his house taxes cut by two thirds

[dmcowen674]

11-29-2014

http://news.yahoo.com/taxes-59m-montana-island-estate-protested-232344525.html

Taxes on $59M Montana island estate protested



A California real estate investor wants the state of Montana to lower his property tax bill by reducing the assessed value of a home he built on an island in Flathead Lake from $41.8 million to $9.8 million.


The Tax Appeal Board heard arguments last week in the appeal filed by Don Abbey of La Mirada, California, Lee Newspapers of Montana reports.
Abbey built the 24,000-square-foot home on Shelter Island in 2011. The home, guest house and boat house on 24 acres now are listed for sale at $59.5 million.


According to the state, the buildings are worth $41.8 million. That valuation would put the annual property taxes at $367,700.

According to an appraiser hired by Abbey, the buildings should be valued at $9.8 million because the house was "overbuilt" in a way that might not add value from a buyer's standpoint.


Abbey has been paying taxes under protest since 2012. His proposed valuation would reduce his taxes by at least two-thirds.

 

[dmcowen674]

YAMTDNWTPHFS

Yet Another Millionaire That Does Not Want To Pay His Fair Share

 

[compuwiz1]

I bet he pays more taxes than you. I bet he contributes more of his income to charity than you. I bet he has a Centurion card and you don't. Oh...life is so unfair!!! This is my daily dose of deal with it Dave. Rather than bitch about the rich, why not try and figure out how to get rich? Plenty of people who were not born with a silver spoon in their mouths have figured out how.

 

[dmcowen674]

I bet he pays more taxes than you.

I bet he contributes more of his income to charity than you. I bet he has a Centurion card and you don't. Oh...life is so unfair!!! This is my daily dose of deal with it Dave. Rather than bitch about the rich, why not try and figure out how to get rich? Plenty of people who were not born with a silver spoon in their mouths have figured out how.

I bet he pays more in taxes than me too, what does that have to with him and his kind trying to not pay their fair share?

 

[Londo_Jowo]

Rage and jealousy is waste of ones time and effort, as well as reduces the quality and length of ones life.

I'm sure he's not the only person to appeal the tax assessment or file a homestead property tax exemption in Montana or other states. As part of the closing package in Texas a homestead property tax exemption form is included and explaining during the closing. I'm sure McOwned would chose not to reduce his tax burden, I bet he doesn't use any deductions when filing his federal and state tax forms.

 

[Victorian Gray]

nm can't read.

 

[doubledeluxe]

Pretty lame to ask for the appraisal value to be lower but list the house for sale at close to $60m

 

[boomerang]

Pretty lame to ask for the appraisal value to be lower but list the house for sale at close to $60m

He can list it for whatever price he wishes. What it sells for should determine its value.

But not if you're in Michigan where if the taxing authority deems a sale to be a "distress sale" they can put whatever value on it they feel is appropriate.

We should be thankful that the process still exists to appeal the level of our taxation at the property level. Nobody in their right mind should be upset over this situation. The man is just exercising a right he still retains.

 

[doubledeluxe]

He's trying to sell the house for $60m but get taxed at $10m. He has a right to ask but he's an asshole.

 

[mikeymikec]

nvm

 

[Londo_Jowo]

Or is it possible he's trying to make his point that the house is not worth the assessment by listing it on the market to show no one is interested in at those prices?

 

[Strk]

Or is it possible he's trying to make his point that the house is not worth the assessment by listing it on the market to show no one is interested in at those prices?

If he was asking for the amount the house is assessed at and not almost $20 million more, sure.

 

[Londo_Jowo]

Guess you've never heard of asking a higher price and allowing the other person to talk you down so they feel like they're getting a great deal eh?

 

[doubledeluxe]

That's a stretch

 

[Londo_Jowo]

Really, I never ask less than 75% more than what I really want for an item.

 

[IndyColtsFan]

I bet he pays more in taxes than me too, what does that have to with him and his kind trying to not pay their fair share?

When are you going to start paying your fair share?

 

[Subyman]

The guy has the right to protest his taxes. I don't see a problem here at all.

 

[soulcougher73]

Well if his appraiser says they are only worth 9.8 million than maybe he should lower his asking price then huh? Nah that makes too much sense and he is a winey bitch.

 

[Londo_Jowo]

Let me guess, you would start out asking $12 million and the person would counter offer $4-$5 million......opps, look like you will either not be making a sale or end up below your bottom line.

 

[boomerang]

Well if his appraiser says they are only worth 9.8 million than maybe he should lower his asking price then huh? Nah that makes too much sense and he is a winey bitch.

Your argument would be a ton better if you could tell us what the land is worth. The man is arguing the value of the buildings. There is a distinction there that is important.

 

[brandonb]

His fair share would be a %. Flat tax rate across the board. Liberals complain about it. In fact, things are not fair. The rich have always paid more across the board in taxes. Yet Dave is here complaining about how its not "fair enough"... Meaning he wants this rich person to pay more. Doesn't compute.

 

[CPA]

YAMTDNWTPHFS

Yet Another Millionaire That Does Not Want To Pay His Fair Share

Dave, have you ever protested your property taxes? I do, every year. It's insane not too. This guy has every right as you and I to protest his property taxes. He'd be stupid not too.

Dave faux outrage, once again. Oh, and thanks for the being the "fair share" police. How much do you get paid for that job?

 

[CPA]

Pretty lame to ask for the appraisal value to be lower but list the house for sale at close to $60m

tax appraisal and sale price are two different things. One has nothing to do with the other.

 

[K1052]

Let me guess, you would start out asking $12 million and the person would counter offer $4-$5 million......opps, look like you will either not be making a sale or end up below your bottom line.

If your property is actually worth $12M then you don't entertain bullshit lowball offers. If the property is worth $6M but you listed for $12M then $4-5M is a reasonable starting range for negotiation. Context is important.

As for the guy, it's his right to appeal. Based on what I can see of the property his claim for 9.8M of assessable value is kind of nuts. I doubt he will see major relief from the appeal with his line of argument.

 

[CPA]

Well if his appraiser says they are only worth 9.8 million than maybe he should lower his asking price then huh? Nah that makes too much sense and he is a winey bitch.

No, it does not make any sense.

In Texas, property tax values can only be increased by 30% within a 3 year period, with no more than 10% annually, if you have a homestead exemption. Furthermore, you can automatically reduce your property valuation for tax purposes by filing a homestead exemption. If eligible, you could also get specific agricultural usage exemptions, exemptions for being a veteran or for being elderly, as well. These things are law. My guess is that Montana has similar laws.

However, if I want to increase my selling price at 200% of my original purchase, I can. I can value my property for sale at any price I want.

The two values have nothing to do with each other.