Market Conditions
Sussex County Taxes are determined by multiplying the value of a property and its land by the current tax rate. Property values are determined May 1st of each year. According to Mr. Chris Keeler of the Sussex County Assessments Office, new assessments have not been done since 1974, and therefore, property assessments continue to be at their 1974 values, or if built later, at the cost of their construction. For 2007, as in prior years, taxes will be charged on 50% of this amount, and are fixed at 44.5 cents for every $100 of assessed value.
According to Mr. Keeler, an ad will go out in February informing owners of their right to appeal their assessment. He said an appeal can be filed by contacting the assessment office. Hearings are then scheduled the first fifteen days of March. Few, if any owners file appeals, stated Mr. Keeler. In preparing for an appeal, residents may want to enlist the help of a realtor to research the market values of comparable properties. Documents showing recent, similar home sales and listings are invaluable in demonstrating current market values, and would prove helpful in assisting the assessment office in their valuation of the property in question.
Sussex County’s budget for fiscal year 2007 is the 18th consecutive budget to keep property tax assessment rates fixed at 44.5 cents for every $100 assessed value. Property taxes make up 17.47% of the General Fund Income for Sussex County, and an estimated $9,979,053.00 in property taxes will be collected in 2007.
When choosing where to purchase property, remember that tax rates can have a substantial impact on the amount of your monthly mortgage payment. Consider for example, Baltimore City, whose tax rate is $1.10 per $100 assessed value. For an average home, valued at approximately $350,000, this amounts to a tax burden of $3850.00 per year. Compare that with Sussex County, where the liability would only be $1557.50, or less than half the Baltimore City rate. $2000.00 less per year for the life of the mortgage would amount to a substantial savings. It is easy to see how much impact the choice of location can have on your investment potential, given varying tax rates.
Purchasing real property in Sussex County, Delaware continues to be a wise investment choice, considering the absence of state property tax and sales tax, and the relatively low county and local property taxes. Add to that everything the area has to offer in beaches, recreation, entertainment and dining, and there could quite possibly, be no better place to purchase investment property.
Story by Real Estate Author Erin Lee
