Kenneth_2003 said:

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Logos Stick said:

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Lol, everyone knows it tax rate times value.

That's not what the poster is saying. He's saying they work backwards from the budget to determine revenue. If they can't increase value enough, they'll raise rates to hit their number.

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What I'm saying is that if you give everyone the same deduction you've affected everyone more or less equally. A falling or rising tide affects all boats equally.

What increasing the homestead does do is disproportionately hit landlords (renters) and commercial properties harder as this shifts a lot of valuation onto them.

I laugh at all the "my appraisal is up I'll never be able to afford this" that's because EVERYONE'S appraisals are up. Increasing variations are not a windfall for the taxing entities because the rates aren't calculated until AFTER the valuations are set.

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I joked that valuations would go up to make up the difference and you clearly stated they would not. You stated the tax rate would go up instead to make up the difference in total revenue. I can read. Of course rental property will bear a larger burden because they don't get the increased exemption. If the tax rate goes up, everyone is affected, not just landlords, even if valuations remain the same. The taxes might be lower than without the increasesd exemption for homeowners, but the effect of the exemption is mitigated nonetheless.

I've looked and can't find anything regarding a floating tax rate. How can the county and school districts simply modify the tax rate at will? If they are allowed to do that to hit their revenue number each year, then it's simply wack a mole.

For the sake of argument, let's assume there is no rental property in a county. They increase the exemption. Per you, the county simply raises the rate to make up for the reduced valuation. The exemption is essentially worthless.

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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Depends on your situation. You need to look at the intersection of how property, state, SS, and a few other things are taxed, but Texas is so skewed towards property that it doesn't shake out at the top in many cases.

Kiplingers usually has some good articles that dives into specifics of different states and how that would impact you.

I believe It means the property tax base exemption for school taxes on your primary home will be $75k more than it is now. So if your school tax is 1.5 % for example and your appraised value doesn't change you'll get an $1125 property tax break.

When I sat on the Board for our local Water Supply District setting next year's tax rate was an agenda item during a meeting, if I recall, mid to late summer.

The CAD sent all of the finalized appraisals and all of the taxing entities sent budgets to the Tax Assessor. The Tax Assessor then recommended the tax rate to meet our budgetary needs. In our case mostly bond obligations


Go find the assessment you got from the county early in the year. Pretty sure there is language in there that the taxes shown are estimates based on last year's rates

P.H. Dexippus said:

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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.

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This is a huge problem and I would argue the #1 issue in America.

As long as people can vote for benefits and increase in number, it's only a matter of time before we pay for being passive and comfortable.

These will never stop taking without giving.

That needs to be stopped before it's too late.

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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One improvement you're not getting is a curriculum on macroeconomics.

Agsrback12 said:

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P.H. Dexippus said:

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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.

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This is a huge problem and I would argue the #1 issue in America.

As long as people can vote for benefits and increase in number, it's only a matter of time before we pay for being passive and comfortable.

These will never stop taking without giving.

That needs to be stopped before it's too late.

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We are already there. 50-60% of the population pays nothing in income tax in any given year. It was as high as 64% during COVID. That is insane.

None of those people should be voting except for specific qualifiers that lets them opt in to vote.

Or, we could do away with the federal income tax altogether and cut about 3/4 of our federal spending. That would be even better.

Kenneth_2003 said:

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When I sat on the Board for our local Water Supply District setting next year's tax rate was an agenda item during a meeting, if I recall, mid to late summer.

The CAD sent all of the finalized appraisals and all of the taxing entities sent budgets to the Tax Assessor. The Tax Assessor then recommended the tax rate to meet our budgetary needs. In our case mostly bond obligations


Go find the assessment you got from the county early in the year. Pretty sure there is language in there that the taxes shown are estimates based on last year's rates

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I'm not saying you are wrong, I'm trying to understand how it works.

The way you describe it seems crazy to me.

If the tax rate can be adjusted each year to meet the budget, then the only thing the appraisal does is divide the pie up in a socialistic fashion, eg. you have a more valuable house than others and thus you pay more than them. You are "richer" and thus carry more of the burden.

And if that's the case, then why not try to limit valuation increases each year? That way, no one is pissed at the CAD. They still get their tax revenue money, the full amount they want, but the ire is not against the appraisers.

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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We live in "rural" Comal CO. Improvements assessment values ie home, shop, barn, garage went up 6 % in 22 and another 6% for 23.......our little 2 acres of rock was assessed at $88K in 21 and for 23 it will be assessed at $228K .....a 259% increase .......sneaky little trds. The real property values may go down with market changes so just jack up the raw land value.

I have not heard of the methodology of the CAD making budget recommendations and rates. Typically that is the Board/District/County/City/Etc and their financial advisors recommendations.

I assume it can happen that way in certain rural or smaller entities to save costs.

Property taxes are too high. As I get ready to retire, and look at my finances to see if I am prepared, I have to factor in $600/month for those taxes. The rates are too high. But my question is, does anyone really have an appraisal evaluation higher than the worth of their property? I don't really know anybody who would sell their property for the appraised amount. Maybe it happens.

Iv'e never heard of or seen appraised values being equal to or more than market values . That doesn't mean they still can't be protested and brought down tho as i believe it's more about your appraised .Value vs those of comparable properties

Logos Stick said:

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Kenneth_2003 said:

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When I sat on the Board for our local Water Supply District setting next year's tax rate was an agenda item during a meeting, if I recall, mid to late summer.

The CAD sent all of the finalized appraisals and all of the taxing entities sent budgets to the Tax Assessor. The Tax Assessor then recommended the tax rate to meet our budgetary needs. In our case mostly bond obligations


Go find the assessment you got from the county early in the year. Pretty sure there is language in there that the taxes shown are estimates based on last year's rates

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I'm not saying you are wrong, I'm trying to understand how it works.

The way you describe it seems crazy to me.

If the tax rate can be adjusted each year to meet the budget, then the only thing the appraisal does is divide the pie up in a socialistic fashion, eg. you have a more valuable house than others and thus you pay more than them. You are "richer" and thus carry more of the burden.

And if that's the case, then why not try to limit valuation increases each year? That way, no one is pissed at the CAD. They still get their tax revenue money, the full amount they want, but the ire is not against the appraisers.

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The CAD just looks at the properties and assesses the value. To them there is no "pie." They set the appraisals and that's it. Commerical, residential, undeveloped, the property in it's current development state has a value. The CAD doesn't know if it is homesteaded or under agricultural exemption or under a rollback... They set a value.

The tax rate fluctuates year to year because the valuations shift. Bond obligations must be met, no $ more, no $ less. M&O budgets have to be met but by law cannot grow by more than 3.5% per year. The rates are set to meet the dollar amount required.

These entities are not working together. They're working independently. I honestly don't know how to restate what I've typed over and over again more clearly. if you're confuse dyou're reading way too much into things. Go pull your previous years tax statements and see your own rates for yourself.

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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And then backer of the bill Paul Bettencourt fights the valuation for you and keeps half the savings for himself!

Logos Stick said:

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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.

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Hell has frozen over because I agree with you

The budget increased by 42% this year. Don't expect these cuts to last long.

70% of GDP is personal consumption, anything reducing that would be a terrible idea.

Kenneth_2003 said:

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The CAD just looks at the properties and assesses the value. To them there is no "pie." They set the appraisals and that's it. Commerical, residential, undeveloped, the property in it's current development state has a value. The CAD doesn't know if it is homesteaded or under agricultural exemption or under a rollback... They set a value.

The tax rate fluctuates year to year because the valuations shift. Bond obligations must be met, no $ more, no $ less. M&O budgets have to be met but by law cannot grow by more than 3.5% per year. The rates are set to meet the dollar amount required.

These entities are not working together. They're working independently. I honestly don't know how to restate what I've typed over and over again more clearly. if you're confused you're reading way too much into things. Go pull your previous years tax statements and see your own rates for yourself.

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Thank you. It astonishes me how many people on here think there is a grand conspiracy between the CAD and the taxing entities. There isn't.

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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Eagle Mountain ISD just completed a unnecessarily huge and grossly extravagant admin building which was passed by union block voting.

All that damn smoke they blew up our ass to start the session about how much they are gonna cut our taxes and this is all we got. To hell with all of them.

Until you separate funding of public schools from property tax and people stop automatically voting in school bonds, this will never get solved. And if you did that they would get it from you through some other channel.

DISD accounts for 50% of my taxes. And you can't really get away from it. We are moving by next year and our new county has their ISD at 56% of the total.

I think I'm my area folks are starting to wise up to this. Klein has had several bonds fail in recent years.

Remember when our forefathers went to war over a 1 cent tax, Pepperidge farm remembers.

So either arm up and go start a revolution, or suck it up and pay the MAN what money is own to him.

All this crying, I feel like I'm stuck in the theater with a bunch of ladies on menopause watching steel magnolias.

Psycho Bunny said:

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Remember when our forefathers went to war over a 1 cent tax, Pepperidge farm remembers.

So either arm up and go start a revolution, or suck it up and pay the MAN what money is own to him.

All this crying, I feel like I'm stuck in the theater with a bunch of ladies on menopause watching steel magnolias.

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We will get there. All countries fail and usually violently.

YouBet said:

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Until you separate funding of public schools from property tax and people stop automatically voting in school bonds, this will never get solved. And if you did that they would get it from you through some other channel.

DISD accounts for 50% of my taxes. And you can't really get away from it. We are moving by next year and our new county has their ISD at 56% of the total.

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This is part of the reason for school choice - not just to offer better schools to the poor but also to close down bad but expensive public schools.
The counterargument is that the public schools will still be left, but mainly as babysitters.

Martin Cash said:

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Kenneth_2003 said:

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What I'm saying is that if you give everyone the same deduction you've affected everyone more or less equally. A falling or rising tide affects all boats equally.

What increasing the homestead does do is disproportionately hit landlords (renters) and commercial properties harder as this shifts a lot of valuation onto them.

I laugh at all the "my appraisal is up I'll never be able to afford this" that's because EVERYONE'S appraisals are up. Increasing variations are not a windfall for the taxing entities because the rates aren't calculated until AFTER the valuations are set.

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This. And as commercial rates go up, so does the cost of everything. You're going to be paying the same, just in a different manner that is not as noticeable. It's just rearranging the deck chairs.

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Agree100%. It's a shinning example of the shell game. And most people paying do not have the time to see the hidden dollars they pay.

For all the complaints about valuation, how many people see their property valued at prices they know they couldn't sell at? Ours has about doubled since we bought 7 years ago, but it's not like the valuation is out of line with market value. I could sell right now to OpenDoor or Offerpad for more than my current tax valuation. If it's accurate, what's the complaint beyond property tax in general?

ABATTBQ11 said:

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For all the complaints about valuation, how many people see their property valued at prices they know they couldn't sell at? Ours has about doubled since we bought 7 years ago, but it's not like the valuation is out of line with market value. I could sell right now to OpenDoor or Offerpad for more than my current tax valuation. If it's accurate, what's the complaint beyond property tax in general?

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Ours is totally out of whack between appraised and market unless these spreads are normal?:

• Realtor.com has our house $81k more than appraised value
• Zillow has it $404K (lol!) more than appraised value

I have no idea what reality is and I actually don't blame Zillow for thinking our house is worth as much as it is because we've seen houses with same sq ft but more updated on inside go on market for ludicrously absurd money...to the point that I think people are just fishing for a dumbass.

If our realtor doesn't sell it, I'm going to throw it to one of these online sites like you mentioned.

We had an unsolicited offer last year for about $10k over our
current appraisal. I was curious about OpenDoor because they kept sending us stuff. I got an online minimum offer for about $20k over our appraisal. Considering we just redid the backyard and have made some other upgrades to the house, I think it would be easily be more. All things considered, as much as the appraisal has increased, it's accurate.

ABATTBQ11 said:

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We had an unsolicited offer last year for about $10k over our
current appraisal. I was curious about OpenDoor because they kept sending us stuff. I got an online minimum offer for about $20k over our appraisal. Considering we just redid the backyard and have made some other upgrades to the house, I think it would be easily be more. All things considered, as much as the appraisal has increased, it's accurate.

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OpenDoor offered me 100k less than what Zillow has but I have seen houses on my street go for more than what Zillow has in the last 6 weeks.

BillYeoman said:

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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

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Mississippi seems like one of those states you'd pay not to live in.

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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Quoting cause i was number 3…..09…WHOOP to star this.

I hate property taxes btw

Yeah, I wasn't interested in taking it. Just curious where they'd come in at. We could probably get more on the open market.

ABATTBQ11 said:

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For all the complaints about valuation, how many people see their property valued at prices they know they couldn't sell at? Ours has about doubled since we bought 7 years ago, but it's not like the valuation is out of line with market value. I could sell right now to OpenDoor or Offerpad for more than my current tax valuation. If it's accurate, what's the complaint beyond property tax in general?

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Property tax is a tax on unrealized gain. A tax on something you own. Like the wealth tax they were proposing where tax was going to be assessed on the value of your assets, even though you sold nothing.

With an income tax, you can see where you had income, it is pretty much measurable for most people. With a sales tax, or consumption tax, that too is measurable, you know what you spent and are taxed on that spending. But property tax isn't based on a transaction, like income and consumption taxes are, but on someone's opinion of the value of what you own.