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Open House

Cutting Property Tax; Test Kitchens; Better Swing Sets

Aired July 30, 2005 - 09:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

GERRI WILLIS, HOST: Angry about high property taxes? Who can blame you? We have strategies for cutting your tax bill.
ANNOUNCER: Today on OPEN HOUSE, property taxes. Think you're paying too much? This man's fighting City Hall. We look at what you can do too.

Then, generations of families have relied on advice straight from this kitchen. We have a personal tour of the newly remodeled "Better Homes and Gardens" test kitchen.

And our weekend project, swing sets, how to choose the best ones for safety, durability, and price, next on OPEN HOUSE.

WILLIS: Hello, and welcome to CNN OPEN HOUSE. I'm Gerri Willis.

No doubt about it, property taxes are skyrocketing. Residents of Yorba Linda, California, who've seen taxes jump 107 percent in just four years. And in the Alexandria, Virginia, they're up 86 percent. Worse, the National Taxpayers Union says that more than half of all homes are over-assessed.

Kathleen Hayes brings us the story of one Rhode Island man who is fighting the system.

(BEGIN VIDEOTAPE)

KATHLEEN HAYES, CNN CORRESPONDENT (voice-over): After 38 years as a dentist, Harvey Waxman was ready to retire with his wife, Judy, in their two-bedroom Rhode Island home, that is, until the mail arrived.

HARVEY WAXMAN, PROPERTY TAX ADVOCATE: The property tax at that time, I believe it was about $7,000 a year. Well, after the revaluation in 2000, our 2001 tax bill came to over $14,000 in one year.

HAYES: Five years later, his retirement looks more like a career change. He started RIGHT, Rhode Island Gets Honorable Taxation, to fight a property tax system that baffled him.

WAXMAN: The property tax is the only tax we pay according to what someone else can afford. It just doesn't make sense to me.

HAYES: Rather than basing property taxes on the market value of a property, Harvey says they should be based on what you paid. Due to the nature of the current system, the recent housing boom has driven national property taxes higher by 36 percent in five years.

And homeowners whose home prices have risen may not have more cash on hand but do have to come up with more money to pay the taxes.

WAXMAN: I can't tear off a few shingles and send it in with my tax bill. Unless everyone is sharing in the burden of their communities, it can never be considered fair.

HAYES: Americans seem to agree. According to an April Gallup poll, 42 percent of respondents said that property tax was the least- fair tax, while only 20 percent picked the federal income tax, and 17 percent named their state sales tax.

But city advocates say rising property taxes are essential for local government.

DON BORUT, EXECUTIVE DIRECTOR, NATIONAL LEAGUE OF CITIES: They're stable. They're dependable. And in this last period, when things were going south in every other way, the property tax really was fundamental to make sure cities could pay for fundamental services.

WAXMAN: I am not suggesting we do away with the property tax. I am only suggesting we change the way we distribute the tax among citizens.

HAYES: And Harvey insists his plan is revenue-neutral, that is, it won't lower the amount available to local governments.

WAXMAN: We have to raise $50 million. We're going to do it one way or the other. We're still going to raise $50 million. I'll either take $25 million from you and $25 million from you, or I'm going to take $50 million from you and nothing from you. Which way is fair? Which way isn't? It's the same $50 million.

I don't know how to make it any more plain.

HAYES: For OPEN HOUSE, Kathleen Hayes, CNN, New York.

(END VIDEOTAPE)

WILLIS: OK, you may not be looking to change the property tax code, but you should stay on top of your assessment, because tax officials sometimes do make mistakes.

So how do you fight City Hall? Richard Roll, president of the American Homeowners Association, gave us some strategies, starting with how to know when you're over-assessed.

RICHARD ROLL, PRESIDENT, AMERICAN HOMEOWNERS ASSOCIATION: One of them is what we call errors of facts or mechanical errors. And in that situation, they're simply counting wrong, they're counting the square footage wrong, they're counting the number of bedrooms wrong, they're counting the number of bathrooms wrong.

And you can research that and confirm whether or not the facts are correct.

WILLIS: And what am I -- is there a document I'm looking for to find this out? How do I know that they've got the wrong number of bathrooms, say?

ROLL: The first thing you want to do is go down to your assessor's office. Or, in a lot of states today, you can have this information online. You can get it online, and get your own property tax record. And in that record, you'll see how they're describing your property, both as to the structures on it, the square footage, the number of bedrooms, bathrooms, whether you have central air conditioning, outbuildings, et cetera, the square footage of the land.

Now, remember, Gerri, there is both the structure itself and the land. Both of those can be subject to errors.

WILLIS: Do they ever make math mistakes?

ROLL: They often make math mistake. They can transpose the numbers. They can say that your square footage is 1,250 versus 2,150, or the other way around. I've seen homes where they have counted two different structures that one structure existed. It was a screened-in porch. It was also counted as a gazebo on the tax records, so the person was being taxed twice on the same structure.

WILLIS: So there could be an error of fact. Is there any part of this equation where it's just judgment that I can contest?

ROLL: Well, errors of judgment are when they're looking at a structure, they've defined that structure correctly, and the land they have defined correctly, but they're using the wrong value as a comparable. In other words, they're saying that your home and your neighborhood are comparable to another neighborhood, which may be much higher in value, much more appealing, may have amenities nearby that are different than your home.

WILLIS: And how do I know that? Is that on the property record as well?

ROLL: The answer is, you go to your assessor's office, and you find out all of the information about the assessment calendar, when is the assessment roll certified, because...

WILLIS: Why is that important?

ROLL: Well, once it's certified, they're counting on that money to help pay the police, the fire, and all of the costs of fuel that have increased, and the cost of health benefits that have increased for all of the municipal employees. They're counting on that money. You may not be able to get an adjustment in the past once it's certified, but you can do it for the future.

WILLIS: You've got beat the certification, you've got to (INAUDIBLE)...

ROLL: You've got to beat the certification. And you really want to do your research at a time when the assessor is going to be receptive to anything you point out that could be an error.

WILLIS: Well, and how do I approach that person? Should I be formal? Should I write them a letter? Should my attorney write them a letter? Or is it better to kind of be chummy and go one-on-one with them?

ROLL: Well, the first thing you want to do is realize that the tax assessor's job is to have fair taxation. They're not there to have a big ripoff for you personally, or to basically stand on ceremony and say, No, I'm not going to consider your concerns.

They are concerned to make sure that fair taxation is taking place. And that includes that you're taking advantage of any exemptions that are available to you, and that there's not some rampant error taking place with your property.

WILLIS: And...

ROLL: So they're receptive. Be courteous, be low key, be friendly, and always be non-confrontational with the assessor. They're just trying to do a job.

WILLIS: But Richard, how likely am I to be successful in getting this tax rolled back in any way? Do you find that people get these overturned frequently? And if so, you know, why doesn't everybody do it?

ROLL: Well, that's a good question. Everybody should do it. In fact, everybody should check their assessment, especially today when local governments are under so much pressure to raise revenue. And anybody who's ever walked down a street, let alone multiple streets, has seen how different properties are from one another.

When you really start to look at that, and you say, How could you value this property? The land is sloped, and it's got a stream, and it's got an unusable portion that's all rocky, how can you value that the same as the next property that has level land, even though the dimensions are the same?

Well, you begin to see that it's a can of worms trying to value property. And if you don't check your assessment, you're going to leave yourself open for being overtaxed. and nobody wants to do that.

WILLIS: Bottom line, check your assessment. Richard, thanks so much for helping us out.

ROLL: Great being here, Gerri. Thank you.

WILLIS: If you want to fight your property tax bill, don't just look for mistakes. Check with your local assessor's office to see if you're entitled to any exemptions. Now, these can very from state to state, but often include breaks for lower-income people, senior citizens, veterans, and farmers.

For more information on lowering your property tax bill, check out the American Homeowner's Association Web site at AHAHome.com. The group also provide a tax-cutting kit at HomeownerTaxcut.com.

And don't forget the National Taxpayers Union. They have a Web site at ntu.org.

Coming up on OPEN HOUSE, it's been around since 1928, and it's influenced your meals maybe more than you know. It's "Better Homes and Gardens" test kitchen. We'll look at its latest innovations.

And later, like to swing on a star? We can't swing that for you, but we'll show you the best choices right here on earth.

But first, your tip of the day.

(BEGIN VIDEO CLIP)

ANNOUNCER: Your home is probably your biggest and most valuable asset. But to protect its value, continuous maintenance of the house is important. Here's how to safeguard your home.

Get your home inspected every five years. That will help you catch small problems early on.

Keep a maintenance log. Record the dates of each job so you'll know when to check for wear and damage.

And keep a record of the cost too.

Make upkeep routine. Try making it a part of your spring cleaning.

And start a repair fund. Budget 1 to 3 percent of the home's value for annual repairs and maintenance.

And that's your tip of the day.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

WILLIS: Looking for the ideal kitchen? "Better Homes and Gardens" has come up with their version. The magazine has redesigned its test kitchen in Des Moines, Iowa, for only the fourth time in 77 years.

(BEGIN VIDEOTAPE)

WILLIS (voice-over): It's been the staple of the American kitchen for generations, the famous red-and-white-plaid cookbook from the editors of "Better Homes and Gardens."

KAROL DEWULF NICKELL, "BETTER HOMES AND GARDENS": We've been in this business since 1928. We have been testing recipes so American can cook at home and do really well in their own kitchens since 1928.

WILLIS: But before a recipe can make it into any of their cookbooks or magazines, each one is tested at least three times. NICKELL: More than 60,000 recipes have been tested here.

WILLIS: That kind of wear and tear created the need to upgrade "Better Homes"' 11 test kitchens, especially this show kitchen. So, just over a year ago, that's exactly what the magazine set out to do. Now the show kitchen is up and running.

NICKELL: We wanted to make sure this kitchen really reflected the way people like to cook, and they like to cook together. They want to cook with people around them. They don't want to be separated from their guests or their family while they cook.

WILLIS: And with only four redesigns in 77 years, the transformation was a dramatic one.

NICKELL: It is black and white. If you can imagine sort of like a 1950s home economics classroom, we weren't too far from that. It was very efficient and it worked very well, but it was very dated. And it wasn't very warm and welcoming. It looked more like a laboratory and worked more like a laboratory, versus a kitchen you actually like to live in.

WILLIS: The task fell to kitchen designer Mick De Giulio.

(on camera): All right. Well, I want you to show me some of the things you've done in here. This isn't necessarily a wall, right?

MICK DE GIULIO, KITCHEN DESIGNER: No, this is the greatest thing for any kitchen, really. It's a system where we can put the appliances behind -- a appliance garage. This is actually like a garage door opener. It's motorized. And we're able to put those things away, like mixers and Cuisinarts, and all these things that can clutter up the kitchen space.

WILLIS: Now again, this is not a wall back here, right?

DE GIULIO: No, this is using almost every inch of space in this back area where we can...

WILLIS: I love it.

DE GIULIO: ... (INAUDIBLE) -- this is great, putting a non- motorized piece, just these small pieces of hardware that create the sliding wall of glass. Behind it is a place to put those things like spices, oils, and al the things that you're using at the cooktop area.

WILLIS: Now, this you could do if you had the space in your kitchen. This is (INAUDIBLE)...

DE GIULIO: Oh, it's something...

WILLIS: ... very possible.

DE GIULIO: ... that's -- it's very possible, very practical. You only need about four inches of depth behind the glass to make this come about. WILLIS: This is amazing to me, because this is the world's biggest kitchen island.

DE GIULIO: We have three different parts to this island. We have a small baking table, where we have more mixers, mixing bowls, some of those larger items below. And then the large island, which has the main sink and a two-burner cooktop, for doing sauces and pieces there. And then to the right, there's this actual roll-around cart.

WILLIS: I love this.

DE GIULIO: This is beautiful, isn't it?

WILLIS: This is gorgeous. What is this material?

DE GIULIO: Well, this is marble tile. It looks like grass. So these are slivers of marble set in a mosaic pattern. Very thick countertop. And this cart rolls around, so we can set some things up here and, say, have desserts, and serving from here.

The sink is one of my favorite things. And we have sliding cutting boards, stainless steel panel on the bottom, an offset drain, so you're not restricting the flow of water into the drain by putting dishes or roasting pans in front of it.

WILLIS: The garbage is here.

DE GIULIO: The garbage, you know, having a piece that you can just set the garbage in without opening a door is great, because your hands are greasy.

WILLIS: Where is your refrigerator?

DE GIULIO: Well, the beautiful thing about some of the refrigeration units now, this one is made by Subzero, and this unit, it's a 700 system, where we can build this in perfectly, integrate it so that you can't tell that it's a refrigerator.

WILLIS: Nick, you were very careful in choosing the surfaces in here, the textures, the colors. Describe to me what you had in mind.

DE GIULIO: I like the idea of mixing pieces, vocabularies, sensibilities, the idea of putting traditional and contemporary together. And breaking rules, thinking that you don't need to stay thematically correct. You can change things and put things together that at least experiment a little bit.

One good example would be some of the finishes of the wood. We have Anna Gray (ph) wood done in a natural finish with horizontal graining. And then to the side, we have a brushed pine finish with ivory filling, so that it feels warm and textural. And then combined with even a piece like this oak, this piece of solid oak for the cart.

And then combining even the pieces of hardware. If you look around closely, even the pieces of hardware in each composition change, so we have some small knobs that are in brushed nickel, some stainless steel that's polished, and different shapes and colors and sizes.

WILLIS: Well, now, I can see it now, what you're talking about. I think of having the cabinets always the same. But you're saying, Don't do that, like...

DE GIULIO: That's right.

WILLIS: ... that's a recipe for something that's maybe a little stale looking.

DE GIULIO: I think so. I think the new kitchens are -- the best look and feel is something that has a unique personality all to its own.

WILLIS: Mick, thanks for your help today.

DE GIULIO: Gerri, thank you. Pleasure. Thank you.

(END VIDEOTAPE)

WILLIS: So if you're considering redoing your kitchen, don't be afraid to mix and match.

When we come back, become a swinger with style. We'll look at the best choices in swing sets.

But first, your mortgage numbers.

(COMMERCIAL BREAK)

WILLIS: Even during the dog days of summer, kids can't wait to play outside. But before they hit the jungle gym, buyer beware. More than 200,000 kids get hurt every year on swing sets.

So we asked John Kupsch, technical director of "Good Housekeeping," to show us what to look for when buying a swing set in our weekend project.

(BEGIN VIDEOTAPE)

JOHN KUPSCH, TECHNICAL DIRECTOR, "GOOD HOUSEKEEPING" MAGAZINE: The most common injury associated with playground use is from falling.

Normally, we don't like to recommend swing sets that are higher than six feet. The higher you go, the more danger there is involved with the swing set.

One thing that happens a lot is that kids can become entrapped in spaces that are too small. For example, these are good, these are about three and a half inches. You see, there's about an inch clearance on the side of a soda can. So you want a large enough clearance here so that children don't stick their head in and become entrapped, or other limb, and then they could become injured. Strangulation is a problem. I generally recommend that parents stay away from sets with ropes, and certainly don't add ropes to a system that doesn't have one.

Here you'll see that the opening does not exceed nine inches, so it is possible that child could become entrapped in here, and possibly injured.

This little finger probe that we use at the Good Housekeeping Institute, and it simulates a child age 3 to 8 years old. So many times we'll look through here. We look for pinch points that could pinch in here like that.

So that's a little bit of a concern on this type of product here.

You'll need to anchor it properly in terms of digging a hole in the ground and adding concrete. With all these systems, these, and any one that you would buy, you need to have the proper surface. Because, remember, falling is one of the major reasons for injury, and you need to have at least six inches of bark or mulch or sand or some soft surface, depending on the height of the unit, for the child when they fall off or jump off, they don't sustain stain an injury.

Around any swing set, we recommend that there's a six-foot perimeter, what they call a fall zone, a jump zone, but generally a zone where children can jump or fall or do whatever off of the sets.

When you have a unit like this, which is made out of wood, it's necessary every year, before it's even used, to check for splinters and make sure that the sealant is done properly. Because these will weather. The wood is going to start to separate. So every year, it's necessary to check for splinters, and sometimes you run a light cloth over it, or a piece of cotton ball, if it sticks on there, that's a problem.

You finish them, you add (INAUDIBLE) sealant, a nontoxic sealant, and check that every year.

Typically, most of your children are going to be using this as they're growing up, and most of the structural members, whether they're plastic or wood, last about seven years. It's not something I would tend to hand down from generation to generation. It definitely has a finite life on it, especially the slide.

And this is plastic. It's going to degrade in the summer over time. So I keep it about seven years at most.

What's your budget? How much are you willing to spend? You should know where in the yard you plan to put it, how much clearance you have around the yard. And make sure that you have the proper environment for installing it properly.

And then be aware of the maintenance program.

This model is $1,600, starting point. So you don't need to spend a lot of money to have fun in the backyard. There are swing sets available at mass merchants, for example, Wal-Mart, and Toys 'R' Us, which are in the hundreds of dollars, certainly well below a thousand, that can be safe and can be enjoyed in a safe way too.

(END VIDEOTAPE)

WILLIS: So if price is your main concern, swing sets with metal and vinyl seats are far cheaper than wood. The good news, these sets require less maintenance, but they may not hold up as long as the old- fashioned style.

We'll be back with a look at next week's show.

(COMMERCIAL BREAK)

WILLIS: Coming up next week on OPEN HOUSE, what does it really mean to be number one? We'll visit towns named best places to live, and find out what's happening now that their secret is out.

And a road trip in style, big style. We'll tour some high-end R.V.s. They're more luxurious than you might have imagined.

Plus, we want to hear from you. Send us your comments, your questions to OpenHouse@CNN.com.

Thanks for watching OPEN HOUSE. We'll see you here next Saturday.

Coming up, "DOLANS UNSCRIPTED."

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