Texas Property Taxes (income, health, state)

[High_Plains_Retired]

Originally Posted by CptnRn

I can't say about Muleshoe, Bailey County, Texas, but here in Austin TX, for our 2,400 SF house appraised around $245,000 in the AISD school district with homestead and disability exemptions we paid $3,632 total property taxes this year. Our rental house, 1,300 SF a few miles away appraised at $173,000 with no exemptions we paid $4,087 Total property taxes. I don't know why Muleshoe would be so high unless they are having to make up for all the agricultural exemptions around it which pay few school taxes. This is probably the case looking at Muleshoe in Google Maps, I'll bet all of that agricultural land that hems it in pays little in school, city or county taxes.

http://maps.google.com/maps?q=Muleshoe,+TX&hl=en&ll=34.231106,-102.722855&spn=0.397391,0.688705&sll=37.0625,-95.677068&sspn=37.956457,77.34375&oq=muleshoe&hnea r=Muleshoe,+Bailey,+Texas&t=h&z=11

I must admit that I have all the applicable exemptions on my primary home in Albuquerque and the Bailey County rate I applied to its placement in Texas is a rate that is applied to my rent house in Muleshoe which does not have any exemptions. If the home remained my primary home, the taxes in Texas would be slightly lower than what I quoted although a 3.5% rate would still be the starting point.

You're probably right about some of the agricultural parts of Bailey County but a few years ago I looked at a rural home house out in the County and found the property taxes there to be significant enough that I quickly changed my mind about buying anything in the County and went looking elsewhere.

All the primary and secondary schools in Muleshoe have recently undergone MAJOR upgrades. However, I have seen the property taxes in that place significantly increase over the past forty years. The Town has the same, or less, population it had forty years ago. It is beyond comprehension as to what is going on.

[CptnRn]

Originally Posted by CptnRn

I can't say about Muleshoe, Bailey County, Texas, but here in Austin TX, for our 2,400 SF house appraised around $245,000 in the AISD school district with homestead and disability exemptions we paid $3,632 total property taxes this year. Our rental house, 1,300 SF a few miles away appraised at $173,000 with no exemptions we paid $4,087 Total property taxes. I don't know why Muleshoe would be so high unless they are having to make up for all the agricultural exemptions around it which pay few school taxes. This is probably the case looking at Muleshoe in Google Maps, I'll bet all of that agricultural land that hems it in pays little in school, city or county taxes.

http://maps.google.com/maps?q=Muleshoe,+TX&hl=en&ll=34.231106,-102.722855&spn=0.397391,0.688705&sll=37.0625,-95.677068&sspn=37.956457,77.34375&oq=muleshoe&hnea r=Muleshoe,+Bailey,+Texas&t=h&z=11

I thought this was sufficiently interesting to provide an illustration.

[texdav]

Even the amounts of properety taxes varies in areas often based on the industrial or lack of tax base. Its not just the property value itslef by selling price. But I would look at overall cost of governamnt and also pay close attention to defcit spending meaning increase future liabilties whch wil come form taxpayers one tax or fee or the other.You could live in a rural area with little services and low taxes and of course benefit with frozen taxes for those over 65.1000 to 1500 with the other reduced fees and taxes is going to be hard to do otherwise on that home.

[Tommytruth]

Property taxes in any Texas city are very high. And the small towns are not much better.

[bherr]

Were you aware you can defer all property taxes in Texas (and 24 other states) if you or your spouse is 65 or older? This is in addition to the "school tax freeze" at 65. It is a little know tax code from 1979.

[circledmetalart]

Deferred implies that there are future obligations.

[Trainwreck20]

Deferred implies that there are future obligations.

Taxes accrue and an 8% interest rate is applied. This is due at the time the house is sold or the owner passes away. If the owner dies, the house is sold and any proceeds are used to pay the taxes first; the balance, if any, is added to the estate. If the balance owed is in excess of the property value, it is still considered paid and no money is owed from the estate other than the value of the home.

The intent is to allow a retired person or persons to remain in their home even if the property taxes have increased beyond their ability to pay, presumably due to a large increase in property value, but also possible if there is a decrease in income. The downside is the reduction in value in the estate due to the interest owed, which could possibly be off-set by investment income on money not paid. Finally, if you do not have anybody in particular you want to leave your money to, stop paying taxes and visit the world or whatever instead .

[bherr]

True. And, the 8% is simple, not compound, so the accumulation is not nearly as significant over the years. The 'estate' has 180 days to pay the deferred taxes after 'last to die' (assuming the younger spouse was at least 55 when deferred).

I like your idea to 'see the world' ... but another option to leverage the tax money via a 2nd to die life insurance policy. The death benefit pays the deferred taxes, and can leave an additional large, tax-free legacy to kids, grand kids, etc.

There's a video that explains that option... I'm new, and I don't know if I can post a link, but the web address is: yourpropertytaxes.org

I plan on deferring when I reach 65...

[Restrain]

Helped an elderly woman use that option. SHe was suffering from terminal cancer, less than a year to live. She was pursuing a loan to pay her taxes as the City etc were threatening to sue over taxes, but she didn't have the money due to the cancer costs. While doing the appraisal, I explained it to her, no one had ever mentioned it. So instead of having to deal with the stress, she signed a deferral form, and let her heirs deal with it.

One other thing, you can pay your property taxes quarterly if you over 65. Taxes are frozen once you are over 65 as well, after all our exemptions.

[sgthyj]

No state income taxes either, so at times it balances out... http://lifehealthus.com/image/images/122.gif