Why are property taxes so HIGH in Texas?? (Austin, Spring: for sale, house)

[hoffdano]

Originally Posted by scm53

Hoffdano, as this article illustrates, same effect is seen in states relying too heavily on steeply progressive personal income taxes. Politically satisfying, plays well to the Occupy Wall Street crowd. Horrible fiscal policy.

But then, fiscal policy isn't what it is about. Is it?

Exactly.

The effect is particularly bad for California because their legislature meets constantly dreaming up ways to spend money. And sets their budgets and spending for the good times. During a recession, business profit falls, and incomes drop. Result = fiscal crisis.

[hoffdano]

Originally Posted by HappyTexan

With state income tax you can not escape escalating taxes.
With local property taxes you can escape by moving to a lower COL area within the state.

I prefer local property taxes because that is under local control.
Sure Austin area property taxes are high but you all voted for those taxing entities besides city, county, ISD.

With the exception of Robin Hood school taxes, all of my property taxes are spent no further away than my county (Travis). No legislator in Houston, or Dallas, or Beaumont has any direct control on how it is spent.

[cBach]

The myth of the cheapness of Texas in regards to Texas proves itself out in the fact that, although it has one of the warmest climates in the country (especially in the Southern tier), it has been unable to bill itself as a retirement mecca. Heck you can move on over to the state next door (Louisiana), live in a mansion for the property taxes it would take to live in a 4 bedroom here, and still have leftover change. Needless to say, I won't be retiring here.

[Novacek]

Originally Posted by cBach

The myth of the cheapness of Texas in regards to Texas proves itself out in the fact that, although it has one of the warmest climates in the country (especially in the Southern tier), it has been unable to bill itself as a retirement mecca. Heck you can move on over to the state next door (Louisiana), live in a mansion for the property taxes it would take to live in a 4 bedroom here, and still have leftover change. Needless to say, I won't be retiring here.

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Abilene, TX - In Photos: The 25 Best Places To Retire in 2014 - Forbes
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Retire Here, Not There: Texas - MarketWatch

[Trainwreck20]

I have been to much of Louisiana (albeit mostly for work, not to live) and have yet to see a place that I would prefer there over the hill country here in Texas. I also plan to have some income and live in a reasonably priced area (to minimize taxes), so the premium I may pay will be worth it to me, I suspect. Still a few years to go, though .

A quick glance shows that the tax rate I would likely be paying in LA would be 6%. No idea on exemptions, etc. for retirees, but that could add up.

A quick look at property taxes indicates I would likely pay somewhere between $800 and $1,500, depending on the value of the home and the location.

Sales tax tends to be around 10%.

[scm53]

Originally Posted by cBach

The myth of the cheapness of Texas in regards to Texas proves itself out in the fact that, although it has one of the warmest climates in the country (especially in the Southern tier), it has been unable to bill itself as a retirement mecca. Heck you can move on over to the state next door (Louisiana), live in a mansion for the property taxes it would take to live in a 4 bedroom here, and still have leftover change. Needless to say, I won't be retiring here.

I'd say the 12,000 folks at Sun City, Texas, might have a different assessment.

I wouldn't retire in Louisiana. The reason? You'd be in Louisiana. Florida is another matter ...

[hoffdano]

Originally Posted by cBach

The myth of the cheapness of Texas in regards to Texas proves itself out in the fact that, although it has one of the warmest climates in the country (especially in the Southern tier), it has been unable to bill itself as a retirement mecca. Heck you can move on over to the state next door (Louisiana), live in a mansion for the property taxes it would take to live in a 4 bedroom here, and still have leftover change. Needless to say, I won't be retiring here.

Yeah, but you'd have to live in Louisiana. I still think we got a raw deal from France. Did we know so much of it is below sea level?

Texas is probably best from a cost of living perspective if you make a lot of money (untaxed in Texas) and don't have much property.

Retirees tend to not have much taxable income and often own property so the Texas tax structure isn't so beneficial. The answer might be to sell that property and rent when retired. (if paying the minimum in taxes is a priority).

[Novacek]

Originally Posted by hoffdano

Yeah, but you'd have to live in Louisiana. I still think we got a raw deal from France. Did we know so much of it is below sea level?

Texas is probably best from a cost of living perspective if you make a lot of money (untaxed in Texas) and don't have much property.

Retirees tend to not have much taxable income and often own property so the Texas tax structure isn't so beneficial. The answer might be to sell that property and rent when retired. (if paying the minimum in taxes is a priority).

Exactly, it depends on how you retire. Texas is excellent for selling the house and living in a RV or boat (since Texas doesn't have a personal property tax).

[tom331]

Originally Posted by hoffdano

With the exception of Robin Hood school taxes, all of my property taxes are spent no further away than my county (Travis). No legislator in Houston, or Dallas, or Beaumont has any direct control on how it is spent.

Robin Hood is big deal. I have paid premium to get into the nicer school, but some of the premium give to other school districts. The school districts that receive the Robin Hool money might has lower tax rate than what we are being taxed by RRID. I still do not understand why the school districts, that send the money to other school districts, tax the property owners in such a high rate. Why not they set lower tax rate so that they don't need to send the money to other school districts?

[Trainwreck20]

Originally Posted by tom331

Robin Hood is big deal. I have paid premium to get into the nicer school, but some of the premium give to other school districts. The school districts that receive the Robin Hool money might has lower tax rate than what we are being taxed by RRID. I still do not understand why the school districts, that send the money to other school districts, tax the property owners in such a high rate. Why not they set lower tax rate so that they don't need to send the money to other school districts?

It is a mess, but really, only AISD is getting royal screwed on it - to the tune of 100s of millions per year now, and increasing. As for lowering the tax rate? Well, if you lower you overall tax rate to decrease the RH outflow, you decrease your own inflow by 5X that or whatever. I.e, if you want to cut 50 million out of the RH, you have to lower your taxes to reduce income (for schools) by 250 mil. That over simplifies it, but the fact remains that you have to pay your own expenses - if you decide to underfund your schools by 25% to eliminate RH outflow, there will be catastrophic effects.