Struggle over property taxes (Harris County) (Howe: 2015, insurance, mortgage)

[Ghost Town]

Part 1: In January 2016 I applied for the homestead exemption. With this exemption alone I am supposed to pay less tax than last year. I called Harris County Appraisal District and some other associated organization in March and they confirmed that they received my homestead application. And homestead should be in effect from April or May this year. But my property tax escrow payments had increased since May and never decreased again.

Part 2: Harris County Appraisal District sent me ridiculous tax increase this year. This is the reason why I started paying more from this May. I protested online in April, about two months ago, but haven't heard from them since then. Is this normal? Already two months. I have really strong case (found five larger properties in the same location appraised much lower). But when I will know the results or go to court to protest again?

However, even with this tax increase my homestead exemption is supposed to lower my tax payments. Why it is not working?

I called several numbers they gave to me, but none of those clerks gave me any clear response about my tax and homestead exemption. Where I should go next and how to complain about this? Looks like they skipped my homestead exemption somehow.

Maybe someone here knows about it? Thanks.

[chris_ut]

With homestead they can still raise you 10% each year so no guarantee you would pay less with homestead then year before. Your account on hcad should show if homestead is applied. Keep in mind this years escrow is based on last years tax assessment.

[Ghost Town]

Originally Posted by chris_ut

With homestead they can still raise you 10% each year so no guarantee you would pay less with homestead then year before. Your account on hcad should show if homestead is applied. Keep in mind this years escrow is based on last years tax assessment.

Well homestead removes 20%, so it still should be lower than a year ago. They gave me tax increase of about 10%, so there is supposed to be a decrease with homestead. And on hcad website I see 'protest received' status, but nothing about homestead exemption. How they just could skip it? Who do I have to call to find out the truth? How can I get a refund?

[NTexas2010]

The 10% homestead cap does not apply until your second full year of property ownership. If you purchased the property in 2015, this year the county can raise the value as high as they wish. The cap will not take effect until next year.

[NTexas2010]

HCAD: Property Tax Exemptions for Homeowners

Specifically:
"...be aware that the value of the home, and the taxes, may increase substantially in the year following the year you purchase it. This is because your cap won't take effect until the second year after you purchase the home."

[Ghost Town]

Originally Posted by NTexas2010

The 10% homestead cap does not apply until your second full year of property ownership. If you purchased the property in 2015, this year the county can raise the value as high as they wish. The cap will not take effect until next year.

Oh thanks for the info. Yes, I purchased the property in 2015.

But when tax protest will be in effect and will I get a refund if everything goes well? (I have strong case against this tax increase).

[haudi]

You will get a refund from your escrow if your tax bill is significantly lower at the end of the year than what your mortgage holder calculated when they did their escrow analysis. Your escrow analysis is typically based on the value at the very start of the year, so any reductions won't be calculated until the next escrow analysis. If I remember correctly, banks have the right to withhold 2 months escrow as a buffer in your account at the time of analysis. Anything more gets returned to you.

Originally Posted by Ghost Town

Oh thanks for the info. Yes, I purchased the property in 2015.

But when tax protest will be in effect and will I get a refund if everything goes well? (I have strong case against this tax increase).

[NTexas2010]

Originally Posted by haudi

You will get a refund from your escrow if your tax bill is significantly lower at the end of the year than what your mortgage holder calculated when they did their escrow analysis. Your escrow analysis is typically based on the value at the very start of the year, so any reductions won't be calculated until the next escrow analysis. If I remember correctly, banks have the right to withhold 2 months escrow as a buffer in your account at the time of analysis. Anything more gets returned to you.

^ This.

[LonghornHotspur]

Originally Posted by haudi

You will get a refund from your escrow if your tax bill is significantly lower at the end of the year than what your mortgage holder calculated when they did their escrow analysis. Your escrow analysis is typically based on the value at the very start of the year, so any reductions won't be calculated until the next escrow analysis. If I remember correctly, banks have the right to withhold 2 months escrow as a buffer in your account at the time of analysis. Anything more gets returned to you.

It's one of the strongest arguments against escrow if you're diligent enough to save. Even at only 1% interest from Ally online, 14 months (time to re-factor escrow) of interest on 12K in taxes and insurance is $140. Not life changing money, but money you don't have to give away to your mortgage company for establishing a simple savings account and making two payments a year, either.

Repeat annually for a 15 year note term and it begins to be material. Even more so if Aunt Janet delivers us a rate increase in a few weeks.

[Liljo22]

Are you calling to complain that your homestead exemption is not listed on the appraisal district's website or that your escrow amount is not lowering? If its not showing on the website, that is something they can look up and take care or. If its the payment amount, your bank does an escrow analysis once a year usually around the time you closed on the loan. They base it on the amount of tax you paid last year plus your insurance amount if that is paid by the bank directly. That amount will not change until the next analysis date even if you feel you are over paying. When the next analysis date comes, they will refund any overage you may have paid. The appraisal district has no control over that amount.