Moved into our new build in March of '21. Value on tax roll is definitely lower than it should be (even without the crazy RE market value growth).

We do not escrow but I've been conservative in saving cash for taxes (using what we paid for the house * tax rate).

I sent in our homestead application about 2 weeks ago for the 2022 year. But I think the form had the wrong date on it? Either way, we have no other homestead exemption and there is not one on the property (per the CCAD site).

Is there a way to check the homestead will be applied in the next go-round?

Also, I assume the jump in value this year (to be paid in Jan 2023) will be the big year that we get popped and taxes owed that will be paid in Jan of 2024 are where we'll see the homestead kick in?

Did I apply too soon or too late given *when* we came into ownership of the property vs when taxes are actually calculated as being due?

I'm confused as it seems you are making this more complicated than necessary.

Buy house. Immediately apply for homestead.

I already applied but did after the April 30th cutoff. However, I didn't own the home at the beginning of 2021.

Does that mean my exemption will kick in for the assessment made in 2022 that's due January 2023?

It doesn't matter, homestead exemption doesn't cap the first Jan 1st that you own the home. That applies to everyone whether it's in place before then or not.

jopatura said:

---

It doesn't matter, homestead exemption doesn't cap the first Jan 1st that you own the home. That applies to everyone whether it's in place before then or not.

---

So the amount on this Jan 1st, 2022, will be like a 300k increase to property value (owned for 9 months) and then my exemption won't effect the value until it's revalued again in 2023? Which I owe by Jan. 31, 2024

So, you won't get anything for 2021 since you didn't own the home on Jan 2.

IIRC, to get your 2022 HE, you need to mail the form in between Jan 1 and April 30 2022. So, if you mailed it in already, you did so too early. They may or may not put it in the trash and make you reapply.

HE doesn't take effect until one full calendar year after you've lived in the property. So, Jan 1, 2023 in your case.

And yes, your Jan 1, 2022 taxable value will likely jump way up since it sounds like there was no house there on Jan 1, 2021. The CAD may or may not use your sales price. If your assessed value is more than your purchase price, you can appeal using your closing statement. If it's less, consider yourself lucky.

ChoppinDs40 said:

---

jopatura said:

---

It doesn't matter, homestead exemption doesn't cap the first Jan 1st that you own the home. That applies to everyone whether it's in place before then or not.

---

So the amount on this Jan 1st, 2022, will be like a 300k increase to property value (owned for 9 months) and then my exemption won't effect the value until it's revalued again in 2023? Which I owe by Jan. 31, 2024

---

Sounds right. The county gets one free pass (the first Jan 1st) to recalibrate the value and bring it back up to everyone else. After that they can appraise it whatever they want, but the assessed value (what you're charged on) is capped at a 10% increase. You still want to fight to bring down the appraised value every year because the assessed can continue to increase by 10% every year to catch up to the appraised value. At best, they will hold the value in a down year and never lower it unless the market has really tanked.

ChoppinDs40 said:

---

jopatura said:

---

It doesn't matter, homestead exemption doesn't cap the first Jan 1st that you own the home. That applies to everyone whether it's in place before then or not.

---

So the amount on this Jan 1st, 2022, will be like a 300k increase to property value (owned for 9 months) and then my exemption won't effect the value until it's revalued again in 2023? Which I owe by Jan. 31, 2024

---

Yes. They get one opportunity to recalibrate. Happened to me this year. Value went up over $450k

The value that is currently on the house for 2021 reflects what the person who owned it on January 1, 2021 qualified for. The value is likely low, because the value for this year also reflects the property as it existed on January 1, 2021. Since it is a new build, it possibly wasn't considered 100% completely constructed on that day.

Your exemption will begin January 1, 2022.

You will get benefits of that exemption for 2022 (the tax due in January 2023 will be lower than it would be if you didn't live in the property). The amount of this benefit differs greatly by location, in some places it can be minimal, in others it can be a close to a 20% discount.

For the value of January 1, 2023, and beyond, your value is also limited to a maximum 10% year over year increase as long as new improvements aren't added to the property.

JJxvi said:

---

The value that is currently on the house for 2021 reflects what the person who owned it on January 1, 2021 qualified for. The value is likely low, because the value for this year also reflects the property as it existed on January 1, 2021. Since it is a new build, it possibly wasn't considered 100% completely constructed on that day.

Your exemption will begin January 1, 2022.

You will get benefits of that exemption for 2022 (the tax due in January 2023 will be lower than it would be if you didn't live in the property). The amount of this benefit differs greatly by location, in some places it can be minimal, in others it can be a close to a 20% discount.

For the value of January 1, 2023, and beyond, your value is also limited to a maximum 10% year over year increase as long as new improvements aren't added to the property.

---

This makes more sense.

I'll get the big "value" jump but then also the exemption (e.g., take $30k off the value) for 2022 taxes due 2023. Then 2023 due 2024 I'll get the benefit of the increase cap.

With value increases around these parts, Heaven help us. Based on realtor, we've got a 20% appreciation in ~ 9 months.

Make sure you protest for 2022 if the value is high. Youre at the whim of what county and what board and what appraisers, but generally your purchase price and closing docs in March 2021 "should" be better evidence of value of your specific property as of 1/1/22 than hand wavy notions about 9 months of appreciation. If they do try to use "appreciation", tell them your home and everything in it (fixtures, finishes, etc) was brand new in March 2021 and now should also have 9 months of depreciation from being used and lived in too to throw smoke at it.