I bought 4 years ago in Dallas and they valued my house at my purchase price, hard to argue.


They have maintained that valuation for 4 years now.

When do we pay the piper? I could probably sell my house for 30-35% more than I purchased it for.


They can only raise it 10% a year but even so, that's an extra $3000 a year in taxes. If values go up another 10% as projected its 4K a year


If they do this it's going to drive people out of their homes.


Is there a work around by our appraisal districts? They obviously don't need that much to maintain what they do. Inflation in 4 years has not been 35%


But they could go after that much money based on sales prices

aggiepaintrain said:

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Your property taxes are $30k a year and you are a $25 stacked ?

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I pay 10K a year in property taxes. If they raise valuation 30 to 35%
that means I'd pay an extra ~$3K

If actual sales values go up another 10% as projected they could potentially and eventually come after an extra $4K in actual taxes and I'd be paying $14K in property taxes

That's over 1K a month just to live here even if I owned the house outright. That would hurt

Rustys-Beef-o-Reeno said:

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Let's do some math
House is worth 400k 2.5% property tax
You pay 10k per year. I'm ignoring homestead exemption etc.

Your house now is worth 35% more or 540,000
Next year they can value your house at 540k but only tax you for 440k (400+10% increase)
You now pay 11k in taxes

The next year you would pay 12.1k assuming you went up another 10%

Then 13.31k
Then 14.6k

They can only increase your tax valuation 10% a year, note this is different than you actual valuation

And this all assumes the tax rate doesn't change.

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I get that, i said it, 10% a year max if they decide to increase valuations to match actual sales in the area

It's still as much as approximately ~4K more a year in taxes

jamey said:

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I bought 4 years ago in Dallas and they valued my house at my purchase price, hard to argue.


They have maintained that valuation for 4 years now.

When do we pay the piper? I could probably sell my house for 30-35% more than I purchased it for.


They can only raise it 10% a year but even so, that's an extra $3000 a year in taxes. If values go up another 10% as projected its 4K a year


If they do this it's going to drive people out of their homes.


Is there a work around by our appraisal districts? They obviously don't need that much to maintain what they do. Inflation in 4 years has not been 35%


But they could go after that much money based on sales prices

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There probably will be people driven out of there homes.
Over 65 or any other qualified homestead exemption gets you capped at your current rate.

Didn't this go into effect? It essentially limits year to year tax increases to 3.5%, regardless of the taxable value increase. So, even if they increase your taxable value to the max 10%, taxing entities can only increase your actual tax bill from one year to the next by 3.5%

https://www.texaspolicy.com/legepropertytaxreform/

I believe that applies to the taxing jurisdiction. The overall tax revenue for that jurisdiction can't go up more than 3.5% without a vote. Your individual taxes could go up more than that assuming others tax burden was reduced.

Aggie71013 said:

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I believe that applies to the taxing jurisdiction. The overall tax revenue for that jurisdiction can't go up more than 3.5% without a vote. Your individual taxes could go up more than that assuming others tax burden was reduced.

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Thanks for the clarification. I guess, either way, it makes it way less likely your take bill is going to go up by 10%.

jtraggie99 said:

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Aggie71013 said:

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I believe that applies to the taxing jurisdiction. The overall tax revenue for that jurisdiction can't go up more than 3.5% without a vote. Your individual taxes could go up more than that assuming others tax burden was reduced.

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Thanks for the clarification. I guess, either way, it makes it way less likely your take bill is going to go up by 10%.

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It may explain why they went from valuations that gave homeowners a break to using the purchase price as the valuation.


My first home purchase in Dallas county was 225K. They assessed thr value at like 180K. My second home was purchased for 425K. They valued it at 424,999. They literally gave me a 1 dollar break.

Isn't there also some other law that has an additional cap for those 65 years old and over?

Shooz in Mizzou said:

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Isn't there also some other law that has an additional cap for those 65 years old and over?

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Yeah, but that's 13 hears away for me.

Shooz in Mizzou said:

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Isn't there also some other law that has an additional cap for those 65 years old and over?

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If you are over 65 and have a homestead exemption your taxes are fixed at their current rate

Aggie71013 said:

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I believe that applies to the taxing jurisdiction. The overall tax revenue for that jurisdiction can't go up more than 3.5% without a vote. Your individual taxes could go up more than that assuming others tax burden was reduced.

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This, but it excludes properties that weren't on the tax rolls from the previous year (recent deliveries).

Also, the jurisdiction has a free out that the Dems in the state Congress negotiated with the repubs in order to vote for this. Essentially, if the jurisdiction is under a state of emergency declaration they can ignore this altogether (to be able to "raise money in times of need")

Now go wonder why our state and counties were so unwilling to get rid of the bogus COVID emergency declarations.

Sea Speed said:

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This isn't sustainable. With inflation kicking in and with the insane raises on people in Harris County, which im sure will be other places, people are going to start getting really hurt. IMO. I think this is going to start getting major attention in tx.

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That's my point. Hopefully placed like the Dallas appraisal district or whoever makes the decision is smart enough and has enough foresight to not claim as much property tax money as they technically could.



As I said above, they didn't use to set values at actual sales prices but now they do.

Sea Speed said:

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I find it highly unlikely that taxing entities suddenly don't want to take as much of taxpayers money as possible. They salivate about it. Government bloat requires more and more. Ita a beast that can never be satiated.

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They already changed from around 2013 to 2017 when they appraised purchased homes at 20% off to 0% off.

TriAg2010 said:

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hunterjr81 said:

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Property Tax = theft in my opinion. You can have your property fully paid for but still lose it if you do not pay your property taxes. Do you really ever own a home if that can happen? Seems to me we just rent our property from the government and that needs to stop.

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Do you really own all of your labor with an income tax?

Do you really own all of your savings with a sales tax?

I'm open to ideas if you have a less worse way to pay for public services, but I'm guessing they will all rely on some coercive measure.

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The problem is they've tied the government expenditures to property values not so much the value of the dollar.

There's a housing boon so the local hospitals, school districts...etc experience a boon in funding thats much greater than inflation. That doesn't make sense.

jamey said:

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TriAg2010 said:

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hunterjr81 said:

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Property Tax = theft in my opinion. You can have your property fully paid for but still lose it if you do not pay your property taxes. Do you really ever own a home if that can happen? Seems to me we just rent our property from the government and that needs to stop.

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Do you really own all of your labor with an income tax?

Do you really own all of your savings with a sales tax?

I'm open to ideas if you have a less worse way to pay for public services, but I'm guessing they will all rely on some coercive measure.

---

The problem is they've tied the government expenditures to property values not so much the value of the dollar.

There's a housing boon so the local hospitals, school districts...etc experience a boon in funding thats much greater than inflation. That doesn't make sense.

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Google "Texas effective tax rates."

jamey said:

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Sea Speed said:

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This isn't sustainable. With inflation kicking in and with the insane raises on people in Harris County, which im sure will be other places, people are going to start getting really hurt. IMO. I think this is going to start getting major attention in tx.

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That's my point. Hopefully placed like the Dallas appraisal district or whoever makes the decision is smart enough and has enough foresight to not claim as much property tax money as they technically could.



As I said above, they didn't use to set values at actual sales prices but now they do.

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CADs don't take your tax money. They just appraise property.

Martin Cash said:

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jamey said:

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TriAg2010 said:

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hunterjr81 said:

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Property Tax = theft in my opinion. You can have your property fully paid for but still lose it if you do not pay your property taxes. Do you really ever own a home if that can happen? Seems to me we just rent our property from the government and that needs to stop.

---

Do you really own all of your labor with an income tax?

Do you really own all of your savings with a sales tax?

I'm open to ideas if you have a less worse way to pay for public services, but I'm guessing they will all rely on some coercive measure.

---

The problem is they've tied the government expenditures to property values not so much the value of the dollar.

There's a housing boon so the local hospitals, school districts...etc experience a boon in funding thats much greater than inflation. That doesn't make sense.

---

Google "Texas effective tax rates."

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I don't see anything about what happens when home values increase 35% or 45%(given forecasted price increases this year) in a short 4 or 5 year period



My house is quickly approaching a 50% increase in real value

jamey said:

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Martin Cash said:

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jamey said:

---

TriAg2010 said:

---

hunterjr81 said:

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Property Tax = theft in my opinion. You can have your property fully paid for but still lose it if you do not pay your property taxes. Do you really ever own a home if that can happen? Seems to me we just rent our property from the government and that needs to stop.

---

Do you really own all of your labor with an income tax?

Do you really own all of your savings with a sales tax?

I'm open to ideas if you have a less worse way to pay for public services, but I'm guessing they will all rely on some coercive measure.

---

The problem is they've tied the government expenditures to property values not so much the value of the dollar.

There's a housing boon so the local hospitals, school districts...etc experience a boon in funding thats much greater than inflation. That doesn't make sense.

---

Google "Texas effective tax rates."

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I don't see anything about what happens when home values increase 35% or 45%(given forecasted price increases this year) in a short 4 or 5 year period



My house is quickly approaching a 50% increase in real value

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What happens is, unless voters approve an increase in revenue greater than ~3%, the tax rate drops as the appraised values (the tax base) increase so the jurisdiction's revenue doesn't increase by more than 3% (maybe 3.5%, I don't recall the exact cap.)

The taxing jurisdictions won't get a 35-45% increase in tax revenue just because appraised values increase.

ChoppinDs40 said:

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PeekingDuck said:

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These are all related to economic activity and won't put a person out of their home. We should be taxing sales and income, not property.

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Bingo. It needs to be a consumption tax - you're taxed based on what you use.

I'm scared ****less of what appraisals are going to do. My home has gone up 50% in 2 years. And we're not talking going from 250k to 375k.

More like 800 to 1.2mm. At full appraisal that's $10k in additional property taxes… in 2 years! That's asinine.

Also, by the way, amounts that I can't deduct. I get not wanting to help Californians so they can't deduct 80k in state income tax but the 10k cap was way too low IMO. Should be more like 25.

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I'm not sure I understand what your worry is. You have a homestead exemption, right? If so, that caps your taxable values at a 10% increase from year to year. It does not matter how much the market / appraised value goes up. Short of doing something to trigger a reset, that's the most it can go up by. In addition, as has been mentioned on this thread, taxing entities are up against a 3.5% cap in actual tax amount increases from year to year. Yes, there are ways they can try to get around that, if they so choose, but that limit will come into play.

jtraggie99 said:

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ChoppinDs40 said:

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PeekingDuck said:

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These are all related to economic activity and won't put a person out of their home. We should be taxing sales and income, not property.

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Bingo. It needs to be a consumption tax - you're taxed based on what you use.

I'm scared ****less of what appraisals are going to do. My home has gone up 50% in 2 years. And we're not talking going from 250k to 375k.

More like 800 to 1.2mm. At full appraisal that's $10k in additional property taxes… in 2 years! That's asinine.

Also, by the way, amounts that I can't deduct. I get not wanting to help Californians so they can't deduct 80k in state income tax but the 10k cap was way too low IMO. Should be more like 25.

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I'm not sure I understand what your worry is. You have a homestead exemption, right? If so, that caps your taxable values at a 10% increase from year to year. It does not matter how much the market / appraised value goes up. Short of doing something to trigger a reset, that's the most it can go up by. In addition, as has been mentioned on this thread, taxing entities are up against a 3.5% cap in actual tax amount increases from year to year. Yes, there are ways they can try to get around that, if they so choose, but that limit will come into play.

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yeah that's not how homestead exemptions work.

every taxing jurisdiction has amounts they "take off" your appraised value. Your appraised value isn't capped.

Some counties or school districts have a "% off" calculation... others just give a $ amount off, regardless of appraised value. For example... when we lived in Plano, Plano ISD gave $35k (IIRC) off your value.

That's awesome for a $300k house.... that's nothing for a $1mm house.

Additionally, that 3.5% is only for "existing properties" with lots of other loopholes. The gubmint is going to get their pound of flesh.

Also, my house was a new build that we moved into March 2021 so it's on the roll for a lot less than what we even paid for it. If it gets set to FMV, we're talking over 100% increase since it was appraised as of January 1, 2021.

We don't escrow and I've been saving based on an amount a little more than what we paid... I'm sure I'll be cutting a much larger check come January next year.

ChoppinDs40 said:

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jtraggie99 said:

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ChoppinDs40 said:

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PeekingDuck said:

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These are all related to economic activity and won't put a person out of their home. We should be taxing sales and income, not property.

---

Bingo. It needs to be a consumption tax - you're taxed based on what you use.

I'm scared ****less of what appraisals are going to do. My home has gone up 50% in 2 years. And we're not talking going from 250k to 375k.

More like 800 to 1.2mm. At full appraisal that's $10k in additional property taxes… in 2 years! That's asinine.

Also, by the way, amounts that I can't deduct. I get not wanting to help Californians so they can't deduct 80k in state income tax but the 10k cap was way too low IMO. Should be more like 25.

---

I'm not sure I understand what your worry is. You have a homestead exemption, right? If so, that caps your taxable values at a 10% increase from year to year. It does not matter how much the market / appraised value goes up. Short of doing something to trigger a reset, that's the most it can go up by. In addition, as has been mentioned on this thread, taxing entities are up against a 3.5% cap in actual tax amount increases from year to year. Yes, there are ways they can try to get around that, if they so choose, but that limit will come into play.

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yeah that's not how homestead exemptions work.

every taxing jurisdiction has amounts they "take off" your appraised value. Your appraised value isn't capped.

Some counties or school districts have a "% off" calculation... others just give a $ amount off, regardless of appraised value. For example... when we lived in Plano, Plano ISD gave $35k (IIRC) off your value.

That's awesome for a $300k house.... that's nothing for a $1mm house.

Additionally, that 3.5% is only for "existing properties" with lots of other loopholes. The gubmint is going to get their pound of flesh.

Also, my house was a new build that we moved into March 2021 so it's on the roll for a lot less than what we even paid for it. If it gets set to FMV, we're talking over 100% increase since it was appraised as of January 1, 2021.

We don't escrow and I've been saving based on an amount a little more than what we paid... I'm sure I'll be cutting a much larger check come January next year.

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You are confusing the homestead exemption AMOUNT, which can vary by taxing entity and the homestead cap. Yes, I used the word "exemption", but I was referring to the 10% cap. If your property qualifies for a HS exemption, the 10% cap is also applied. This is directly from Collin County CAD:

Cap value applies to residential homesteads only and it goes into effect the second year after a residential homestead exemption has been granted for your residence. If the property is your residence homestead, the appraised value may not exceed the lesser of the market value of the property or the sum of:

Cap value applies to residential homesteads only. If this property is your residence homestead, the appraised value may not exceed the lesser of the market value of the property or the sum of:

• 10 percent of the appraised value of the property for the preceding tax year;
• the appraised value of the property for the preceding year; and
• the market value of all new improvements to the property.

Here's the verbiage from the state comptrollers website:


Limitation on Residence Homestead Value Increases
The appraised home value for a homeowner who qualifies his or her homestead for exemptions in the preceding and current year may not increase more than 10 percent per year.
Tax Code Section 23.23(a) sets a limit on the amount of annual increase to the appraised value of a residence homestead to not exceed the lesser of:

• the market value of the property; or
• the sum of:
  
  • 10 percent of the appraised value of the property for last year;
  • the appraised value of the property for last year; and
  • the market value of all new improvements to the property.

Tax Code Section 23.23(e) defines a new improvement as an improvement to a residence homestead made after the most recent appraisal of the property that increases its market value and was not included in the appraised value of the property for the preceding tax year. It does not include repairs to or ordinary maintenance of an existing structure, the grounds or another feature of the property. Tax Code Section 23.23(f) states that a replacement structure for one that was rendered uninhabitable or unusable by a casualty or by wind or water damage is also not considered a new improvement.
The appraisal limitation only applies to a residence homestead. As stated in Tax Code Section 23.23(c), the limitation takes effect Jan. 1 of the tax year following the year in which the homeowner qualifies for the homestead exemption. It expires on Jan. 1 of the tax year following the year in which the property owners no longer qualify for the residence homestead exemption.
If an ARB, arbitration or court determination lowered a property's appraised value, the appraisal district cannot increase the appraised value unless the increase is reasonably supported by clear and convincing evidence.

*shrug* my appraised amount on my house in Plano definitely went up over 10% YoY.

Either way, since we're in year 1, I'm getting blasted, which is what a lot of people are going to encounter with the amount of new homes being built and the buy/selling going on.