Abbot and the state done a good thang.
Another law possibly coming is school choice.

https://texasscorecard.com/state/abbott-signs-property-tax-compromise-into-law/

Can someone baby talk me through what that means for me as a homeowner?

tk111 said:

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Can someone baby talk me through what that means for me as a homeowner?

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It means the CADs will raise values even more to make up for the lost revenue.

Yippie!!

Time for my evaluation to continue maxxing out for several more years to make up the shortfall.

Logos Stick said:

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tk111 said:

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Can someone baby talk me through what that means for me as a homeowner?

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It means the CADs will raise values even more to make up for the lost revenue.

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I mean as long as its still capped at 10%...aint much more they can do to me on that front. Ive successfully managed to keep them from raising my value by 10% ONE time in the last 7-8 years.

Welcome to $500k median home prices.

tk111 said:

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Can someone baby talk me through what that means for me as a homeowner?

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Basically, you don't pay any property tax on the first $100,000 in value of your homestead.
In the past, the exemption was usually $30,000, but it has grown at different rates depending on city.

Edit to point out that obviously this makes a much bigger difference (ratio) to someone with a $200,000 property than to someone with a $1,000,000 property.

Logos Stick said:

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tk111 said:

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Can someone baby talk me through what that means for me as a homeowner?

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It means the CADs will raise values even more to make up for the lost revenue.

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Yup.

Errbody here gonna have million dollar mcmansions next year.

My assessed value has gone up 125% in 7 years. I get the maximum 10% cap on taxable value every year chasing that assessment and it never catches up, so basically every 7 years my tax bill doubles in perpetuity unless my valuation stops increasing at a faster annual rate.

I will never be able to retire on this property without putting cattle on all of it except my back yard, pretty much.

I'd really like to know what kind of improvements in city/county/school district services we're getting for paying twice as much

DrEvazanPhD said:

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I'd really like to know what kind of improvements in city/county/school district services we're getting for paying twice as much

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Inflation bro. That's the beauty of their system.

one thing it does do is make CAD Boards Elected by voters and not by the taxing agencies. check who is on your CAD Boards, they are all in the REAL ESTATE BUSINESS

Still have to vote it in during NOV elections, which mean tiu want see it for another year while they keep raking in the money!!

DrEvazanPhD said:

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I'd really like to know what kind of improvements in city/county/school district services we're getting for paying twice as much

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More useless beaurocracy and administration

But AbBBoT iS a LiBeRal!!! /f16

This bill sucks. It doesn't address the problem at all. We needed a 5% increase cap per year on all real property in Texas. I had a rental house go from $227,000 to $391,000 this past year in a cooling market. I did successfully protest, but that is just flat out ****ing theft. The house barely cash flows as it is. If my property taxes went up 70% overnight, i would have been underwater on it going forward. The theft by over-appraisal has to stop. It's ****ing criminal.

Edit: for the sake of being intellectually honest, I did just read that the bill includes a "three year pilot program" whereby all non-homestead properties under $5 million are capped at 20% increase per year for the next three years, which I was not aware of. So that would have capped my rental at $272,400 (which is right about where I ended up after protesting) as opposed to the $390,000 they jacked it up to. That is certainly an improvement, but 20% per year is still too much, and they need to make it permanent instead of a "pilot program."

spicyitalian said:

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Welcome to $500k median home prices.

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That already happened 18 months ago.

If we are going to keep a property tax system...

Much better than $ exemption would have been a % exemption (say 40% for homesteads) and reduction on assessed value growth. Cap growth at 3% instead of 10%. Exempting low income folks from having any skin in the game is already rampant.

MouthBQ98 said:

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My assessed value has gone up 125% in 7 years. I get the maximum 10% cap on taxable value every year chasing that assessment and it never catches up, so basically every 7 years my tax bill doubles in perpetuity unless my valuation stops increasing at a faster annual rate.

I will never be able to retire on this property without putting cattle on all of it except my back yard, pretty much.

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Yep. I did a quick and dirty calc a while back. Something like $300k purchase price at 30 years old and extrapolated the 10% increase in taxes (assuming no rate change) annually and at retirement you were paying I think about $65k annually in taxes*. Just to live in your own home, after you've paid the mortgage off.

How awesome will it be to pay off the mortgage and "own" your home...but still have a multiple thousand dollar per month tax bill?

*going off of memory so that number is probably not correct, but conveys the point that the taxes at the rate we are going now will be stupid insane and many people will have little choice but to sell their homes because of them

DrEvazanPhD said:

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I'd really like to know what kind of improvements in city/county/school district services we're getting for paying twice as much

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Those reading rooms full of ****ty, idle teachers now get espresso machines and free iPads with Wi-Fi.

DescendingAg said:

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This bill sucks. It doesn't address the problem at all. We needed a 5% increase cap per year on all real property in Texas. I had a rental house go from $227,000 to $391,000 this past year in a cooling market. I did successfully protest, but that is just flat out ****ing theft. The house barely cash flows as it is. If my property taxes went up 70% overnight, i would have been underwater on it going forward. The theft by over-appraisal has to stop. It's ****ing criminal.

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We need to replace property tax with a consumption tax, IMHO.

The CADs as we all know are as corrupt and inept as possible.

For example, I did a little deep dive into mine last year and shocking I know...The lead appraiser and his assistants saw a 0% increase on the value of their properties for 3 years straight. Not a single adjustment to those 3 individuals. I did random address searches all around their homes and guess what? Those properties all received average+ increases.

I called them out and the lead appraiser was no longer employed a short time later.

If you have ever gone to dispute your value by hearing, you will quickly come to understand that they have an extremely difficult time explaining the calculations it takes to get to the value they provide.

mustang1234 said:

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one thing it does do is make CAD Boards Elected by voters and not by the taxing agencies. check who is on your CAD Boards, they are all in the REAL ESTATE BUSINESS

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This will help some.

Nothing like a system where you have taxing authorities appoint the people that determine how much each property owner must fess up to said taxing authorities.

Nahh....no conflict of interest there at all. Move along plebes, move along.

I wish the bill would have a mechanism to incentivize fiscal responsibility in government as well instead of punishing it. As it stands now, there is zero reason for any government agency to save money on anything, because they A) are not rewarded for saving money in any form or fashion and B) saving money in year 1 means your budget is automatically reduced in year 2. So why would any department head even attempt to spend less if the result is getting f'd over the following year during the budget creation process?

Of course, I also wish tarring and feathering was still a standard practice implemented on government officials that suck at their jobs.

Logos Stick said:

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tk111 said:

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Can someone baby talk me through what that means for me as a homeowner?

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It means the CADs will raise values even more to make up for the lost revenue.

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WRONG...
Tax RATES are set after all of the valuations for the county are finalized.
Each entity submits their approved budgets to the tax assessor. Once the CAD is done with the rates the Tax Assesor then takes the rates for each entity and recommends the required tax rate against the approved CAD valuations to meet each entities budgetary requirements.

The CAD is the first step in the process. They're going to get their pound of flesh from every property owner regardless of the valuations.

Yes, the individual valuations play a role but ultimately it boils down to the spending.

Larger homestead exemptions only pass the buck along to landlords (and by extension renters) and commercial properties (and by extension customers or employees).

Rongagin71 said:

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Abbot and the state done a good thang.
Another law possibly coming is school choice.

https://texasscorecard.com/state/abbott-signs-property-tax-compromise-into-law/

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School Choice is critical in saving these United States.

schmellba99 said:

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MouthBQ98 said:

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My assessed value has gone up 125% in 7 years. I get the maximum 10% cap on taxable value every year chasing that assessment and it never catches up, so basically every 7 years my tax bill doubles in perpetuity unless my valuation stops increasing at a faster annual rate.

I will never be able to retire on this property without putting cattle on all of it except my back yard, pretty much.

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Yep. I did a quick and dirty calc a while back. Something like $300k purchase price at 30 years old and extrapolated the 10% increase in taxes (assuming no rate change) annually and at retirement you were paying I think about $65k annually in taxes*. Just to live in your own home, after you've paid the mortgage off.

How awesome will it be to pay off the mortgage and "own" your home...but still have a multiple thousand dollar per month tax bill?

*going off of memory so that number is probably not correct, but conveys the point that the taxes at the rate we are going now will be stupid insane and many people will have little choice but to sell their homes because of them

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Good luck finding a house that isn't a bunch of 2 x 4s held together by duct tape for less than $300K. 500K in 7 years.

I don't know how they're going to solve this problem, but I do know that there will come a point that the majority of the middle and lower class will not be able to pay their taxes. Housing appraisals can't go up 10% every year while incomes only go up 3% per year.

Until we figure out another tax that can offset some of the state budget. We can't cut much. We have the 5th lowest budget per capita in the country.

Homeowners will continue to get hammered as long as that in the only real revenue stream for the state.

Florida is able to rely on sales tax from tourism, Nevada on the gaming industry, Tennessee taxes dividends and has a higher sales tax. Texas basically has the burden fully fall on homeowners.

Looking ahead, you are going to see people just walk away from property. These % increases we are getting every year are unsustainable. I don't care how well off you are at some point the math won't make sense to own.

Edit: or people leave Texas to retire elsewhere. There are several states where it will make more sense to retire from a financial bottom line.

BoydCrowder13 said:

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Until we figure out another tax that can offset some of the state budget. We can't cut much. We have the 5th lowest budget per capita in the country.

Homeowners will continue to get hammered as long as that in the only real revenue stream for the state.

Florida is able to rely on sales tax from tourism, Nevada on the gaming industry, Tennessee taxes dividends and has a higher sales tax. Texas basically has the burden fully fall on homeowners.

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Sales tax and cut spending even more. The math works out

DescendingAg said:

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This bill sucks. It doesn't address the problem at all. We needed a 5% increase cap per year on all real property in Texas. I had a rental house go from $227,000 to $391,000 this past year in a cooling market. I did successfully protest, but that is just flat out ****ing theft. The house barely cash flows as it is. If my property taxes went up 70% overnight, i would have been underwater on it going forward. The theft by over-appraisal has to stop. It's ****ing criminal.

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Those are rookie numbers. CAD increased my little two room cabin on the lake from $350K to $890K in one year. I protested them back down to $640K Yay! Big win for me. My taxes will only nearly double instead of triple on my unrealized capital gain. They'll get the rest next year, though.

DescendingAg said:

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This bill sucks. It doesn't address the problem at all. We needed a 5% increase cap per year on all real property in Texas. I had a rental house go from $227,000 to $391,000 this past year in a cooling market. I did successfully protest, but that is just flat out ****ing theft. The house barely cash flows as it is. If my property taxes went up 70% overnight, i would have been underwater on it going forward. The theft by over-appraisal has to stop. It's ****ing criminal.

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With rising interest rates and insurance going through the roof it is only going to get worse. Good luck with the rental. Its tough times in the real estate biz.

According to my.MUD, this exemption o ly applies toward the school portion of your taxes, city/county/mud/port authority/hospital district is still as it was before.

Which is not how I thought it would work as a homeowners exemption would be across the board.

YouBet said:

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Looking ahead, you are going to see people just walk away from property. These % increases we are getting every year are unsustainable. I don't care how well off you are at some point the math won't make sense to own.

Edit: or people leave Texas to retire elsewhere. There are several states where it will make more sense to retire from a financial bottom line.

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Which ones? Genuinely curious

California wins here. My property taxes are (for all intents and purposes) locked…I pay the same amount every year.

I've lived in my house for 23 years, the value has skyrocketed, and I pay roughly the same amount I did in year one.

I don't know how you guys put up with a moving target like that.

AGGIEZ99 said:

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YouBet said:

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Looking ahead, you are going to see people just walk away from property. These % increases we are getting every year are unsustainable. I don't care how well off you are at some point the math won't make sense to own.

Edit: or people leave Texas to retire elsewhere. There are several states where it will make more sense to retire from a financial bottom line.

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Which ones? Genuinely curious

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Mississippi

They have state income though