property taxes in TX (Dallas, Austin: sales, real estate market, mortgage broker)

[leavingcali]

I've read on this forum, and have heard from other people, that Texas property taxes are outrageous. Can someone explain to me how they work there? What would the annual property tax be on a $250,000 home?

Also I've been reading that there is legislation currently in Texas to reduce property taxes. Can someone educate me on this too? Thanks!

[CHEWY12]

levingcali,
I think they are to high also. The Taylor county (Abilene) tax collector web site has a good explanation of the property tax situation .
though each county sets thier own rate along with the city and school districts in the area. be sure to look before you leap.
www.taylor-cad.org

est. tax on $250,000.00 assessed value = aprox $5656.25 per year or 471.35 per month compare that to Lyon county Nv.at $3062.50 per year or $255.20 per month for the same $250,000.00 home.

Good luck to you.
CHEWY12

[leavingcali]

Thanks, Chewy12. I will check out that website. Is Nevada one of the cheaper states when it comes to property tax?

[AustinTraveler]

Make sure you check ALL the taxes and not just property taxes. When you add it all up, most places pretty much equal out.

[cdelena]

Originally Posted by AustinTraveler

Make sure you check ALL the taxes and not just property taxes. When you add it all up, most places pretty much equal out.

Correct... you have to look at total tax burden for your situation as it will vary greatly for individuals.

Texas has high property taxes (but not the highest) as there is no income tax. There is also a relatively high sales tax.

Like all taxes, property taxes are not administered in a totally even handed way so it will vary from one taxing authority to the next. In most districts every effort is made to appraise residences at 100% of market value which is easy to do since sales prices are often public knowledge. Commercial properties and very high value residences often get away with lower appraisals as finances are not as public.

Schools are under pressure in Texas with increasing enrollments of students without English language skills. School financing is a major issue in the state. Infrastructure costs are also outrunning tax revenue so there is a large increase of toll roads in the state.

[CHEWY12]

I can't say that Nevada is one of the states with the lowest property tax but it is one of seven states that do not have a state income tax.
also as cdelena stated most districts in Texas use 100% of market value to determine property taxes so if the real estate market goes up so will your taxes. I was able to get the tax history from 1994 thru 2006 for all of the counties in Texas and most seem to be holding fairly steady in the tax rates.
I was able to get the tax history on a property I was thinking of purchasing and its assessed value went up 9.95% each year for the past 10 years.
I'm not advocating one place over another just make sure that the income to outlay ratio will work for you. research research research!!!!!!

Best of luck
CHEWY12

[momof2dfw]

No, not always are your property taxes 100% of the "real" market value. In the Dallas metroplex the county tax appraisal typically has them about 10% lower than the true market value would be if you sold your property. Sometimes much more. The only thing is you should look up a property before you make an offer to see what the county has the market value set at and don't pay a HUGE % over that price. Then the next year they can set your market value at that price and you can not protest it that year (well, you can but will not get it down as that is what you paid for it). After that they typically and are required to reappraise the property values every 3 years. So you really could have your property value that you are taxed on stay the same for 3 years even if the market goes up. I've even seen some that have not gone up at the 3 year reappraisal and they were in areas that had seen some pretty nice jumps in value.

[cdelena]

Originally Posted by momof2dfw

No, not always are your property taxes 100% of the "real" market value. In the Dallas metroplex the county tax appraisal typically has them about 10% lower than the true market value would be if you sold your property. Sometimes much more. The only thing is you should look up a property before you make an offer to see what the county has the market value set at and don't pay a HUGE % over that price. Then the next year they can set your market value at that price and you can not protest it that year (well, you can but will not get it down as that is what you paid for it). After that they typically and are required to reappraise the property values every 3 years. So you really could have your property value that you are taxed on stay the same for 3 years even if the market goes up. I've even seen some that have not gone up at the 3 year reappraisal and they were in areas that had seen some pretty nice jumps in value.

I have fought DCAD for years over residential appraisals and I can guarantee you that their policy and actions are to appraise at 100% of market. There is no quote you can make about the 'Dallas metroplex' because taxes are done by county and in Dallas there have actually been press conferences where the county has defended the 100% policy.

Your experience is what it is but do not post inferring mine is not valid. Dallas is 100% and that is how they have appraised properties in my area.

[momof2dfw]

Originally Posted by cdelena

I have fought DCAD for years over residential appraisals and I can guarantee you that their policy and actions are to appraise at 100% of market. There is no quote you can make about the 'Dallas metroplex' because taxes are done by county and in Dallas there have actually been press conferences where the county has defended the 100% policy.

Your experience is what it is but do not post inferring mine is not valid. Dallas is 100% and that is how they have appraised properties in my area.

I've lived in Dallas County and do to this day and have myself fought DCAD many times and mine has always been well under the REAL market value. Maybe you are expecting too much. Even a good mortgage broker will tell you the general rule of thumb for the Dallas area market is 10%. Your experience is what it is and mine is what it is so you can not tell me also that mine is not valid either.

[CHEWY12]

From the Texas State Constitution.

Constitutional Standards
The Texas State Constitution sets out five standards for the property tax.

1.Taxation must be equal and uniform. All property must be valued and taxed in an equal and uniform manner. This provision, which is an equity standard, helps ensure that no single property or type of property pays more than its fair share of taxes.
2.With some exceptions, all tangible property must be taxed on its January 1 market value. The exceptions include certain agricultural; timber; and recreational, park, and scenic land subject to special appraisal. A property's market value is the price for which it would sell when both buyer and seller want the best price and neither is under pressure to buy or sell.
3.All property is taxable unless federal or state law provides an exemption for it. An exemption excludes all or part of a property's value from taxation.
4.Property owners have a right to reasonable notice of increases in appraised property values.
5.Each property in a given appraisal district must have one appraised value. An appraisal district's boundaries generally follow the boundaries of the taxing units which are located in it.

Under these provisions your taxes can change from year to year. If your district chooses to assess every 3 years then that is very nice of them to do that but they can do it every year under the language of the state standards

You may also have some exemptions that may reduce your tax burden to less than 100% of market value. ie homestead exemption

your personal experience may be different but the state standards would be upheld in any state court.

leavingcali you asked if the state legislature has done anything to reduce proprety tax.Yes they have the school tax has been lowered from 1.5 to 1.0 this will be phased in by the 2008 tax year. .25 in 2007 & .25 in 2008
this info I found through Taylor County Tax office. It's not all bad news.


I'm not trying to get anybody upset I just want to share what I have found out for my self by calling and talking to people at different tax offices through out Texas. By the way everyone that has helped me @ the county level have been very friendly and helpful. I miss that folks out here in Fl.are not like that.

I grew up in Wichita Falls and would love to come back but I don't think I can afford it when I retire.

Talk to you latter

CHEWY12