Property Tax (sales, how much, house)

[panacea82]

Just wondering how the taxable value of the new construction house is established. Will this be based on the final selling price? I am thinking about paying for all those interior upgrades instead of rolling them into the final selling price. So I dont need to pay property tax on those upgrades down the road.

Thanks!

[nsumner]

There should be a pretty large part of the contract may be a full page explaining how the taxes are going calculated.

Is the house a spec or are you building from scratch?

If the house is a spec and was completed by May of 2009, it should already have a taxable value. Usually a lot less than the market value. That will be the value used when you close on it.

After closing you will get a letter from the appraisal district asking you how much you paid for the house. This information is not disclosed in Texas since we have a non-disclosure state. You do not have to tell them if you don't want to. The appraisal district will then use their formula to come up with the new appraisal amount. The appraisal district have access to the MLS, you can ask from the builder that your sales price not be divulged if you want.

If you are building from scratch the current assessed value is obviously based on land only. The house will get assessed in May based on the county's formula.

If you are paying for the upgrades outside the contract price then you are not financing them, therefore not paying any tax on them.

Naima

[stillkit]

The appraised value of your house is pretty much determined by the appraisal district inspector, who will typically just drive by your house and maybe take a few photos. It's taxable value may, or may not, have anything to do with its market value.