Wilco Property Tax Notices of Appraised Value Now Available (Austin: house, appraisal)

[Austin97]

Originally Posted by blameyourself

Uh, I'm referring to the fact that it only takes off 5% of the value which is peanuts. I think it's safe to assume she already had it in place the previous year since she's been a resident for quite some time. 10% is a lot and my point was that people will have to keep paying that until they catch up with market value. Hence, she can expect that 10% for probably at least the next 5-10 years unless you seriously think housing prices are going to plummet with all the growth going on. I don't have a crystal ball but I think there will be some appreciation over the next 10 years (housing prices have ebbs and flows but over that length of time, I would suspect most will go up)

Someone with a $300k house that went up to $550k at a 2.5% tax rate would be paying...

Year 1 $7500
Year 2 $8250
Year 3 $9075
Year 4 $9983
Year 5 $10,981
Year 6 $12,079
Year 7 $13,287
Year 8 $14,615
Year 9 $16,077
Year 10 $17,684

Between year 6 and 7 would be the stopping point if there was 0% appreciation and the home stayed at that value. Clearly with a small amount of appreciation, the number could get to the 10 year figure and anyone buying a home at 50 years of age or younger would experience this shy of a tax rate decrease. So in this example, that homeowner had their property tax increase by $10k and more than doubled. That's going to be tough for families to handle that don't have the benefit of a over 65 exemption. Using the earlier example in this thread will result in a property tax bill probably in the $25k range.

Feel free to correct me if my math is off.

your math is just math so not wrong. The part that is wrong is that if everyone's house went up by that same percent, the tax rate would be forced to drop so the taxes wouldnt increase at that rate in your model.

[Austin97]

Originally Posted by blameyourself

And a good article with some takeaways of what I'm talking about...

Remember that 10 percent homestead cap that limits the growth in your home’s taxable value? Many of us could bump up against that cap year after year. At 10 percent annual growth, a home’s property tax bill will still nearly double in about seven years.

Homeowners and renters alike are worried about hanging onto their places in the face of a frenzied real estate market that shows no signs of abating.


https://www.texasmonthly.com/news-po...me-appraisals/

this article is 100% wrong. The author has no idea what they are talking about.

At 10 percent annual growth, a home’s property tax bill will still nearly double in about seven years.

Is a completely wrong statement

[Austin97]

Originally Posted by blameyourself

You clearly don't understand everyone's property appreciation which is a key part to the equation on the amount of catching up people need to do. You are simply relying on a tax rate decrease and ignoring the growth that has taken place, which is nothing like your last 22 years. As stated, the example doesn't even involve any property appreciation, which is somewhat absurd (I suspect if you took a poll, most people would agree that property values in 7 years will indeed increase). Not much more to say on this. There's a reason this is a hot topic issue in the legislature right now. People that don't have the 65+ exemption are going to be in a world of hurt (an exemption which I believe you have, no?...so the conversation may not be relative to you or what you experience personally).

the Irony is that you dont understand how taxes are determined.

1) tax entities set their budgets (max of 3% increase mandated by the state without a vote)
2) appraisal districts value their properties
3) tax entities set their tax rates to raise #1 based on #2

What you are missing is that tax rates float. The key drivers of the actual tax you pay are

1) your increase in value compared to everyone else
2) tax entity budget increases (including bonds etc)

[Trainwreck20]

Originally Posted by blameyourself

And for the fun of it, I just went through the tax rates for the past 3 years. Riaelise, I know you live in my neck of the woods so I figured this would be relevant to you

Market Value Property Tax Rate

2020 300,562 2.8

2021 351,927 2.7

2022 546,293 2.5

Who in their right mind doesn't think you and I will be playing the catch up game for the next 5 years at least?

The rate went down a whopping .1% from 2020 to 2021. And then we have a .2% change from 2021 to 2022. Sorry but BFD! Seriously, that's supposed to be some type of relief for a homeowner? Puleeeze!

The new market value is $485k but I certainly don't see that continuing. More than likely it stabilizes and then starts to incrementally climb, setting us up for more 10% increases possibly beyond the 5 year mark.

I am not sure if you don't understand or you are trying to confuse people. It is 0.2 percentage POINTS (2.1767 to 1.9749), which equates to a 9.3% decrease in the tax rate, almost exactly off-setting the (presumed) 10% increase. Yes, that is just one year, but the tax rate and the appraised values are linked via the budgets of the taxing entities. The somewhat automatic increase in appraised value for the next few years results in an automatic decrease in rates.

Edit: At your address, the 0.2 points = ~7.4%, but same general idea - 7.5% is a significant decrease, despite the small magnitude.

[Austin97]

Originally Posted by riaelise

Ok, I think maybe I missed a word or two in my post as I was just typing quickly...

In 2022, our appraised value was $984,000. Our Net Appraised Value (I think that's what it's called, as I am doing this from memory) was $599,150. -300 or so less taxes.

This year, our appraised value is $786,000. Our Net Appraised Value is $659,000, so there will be a tax increase.

I didn't understand why the drop in value didn't also drop the Net Appraised Value, but Austin97 probably explained it best.
It's still can be confusing to many people, and one would think that decreased values region wide would result in a tax savings.

No because the values are almost completely irrelevant for determining your tax.

The total amount of tax due from the population is determined by the budget. If the budget increases 3% (by law) then how would your tax increase 10% or go down?

The caveat is that if the average home increased 50% and your home increased 25% you would pay a smaller share as compared to last year. Your taxes might still go up depending on the exact relationship, except to the extent that your net appraised value increase was capped at 10% like everyone else. However the commercial properties would take on more of the burden.

[blameyourself]

Originally Posted by Austin97

thats not how it works.

If your value went up the capped 10% but everyone else's value doubled, your tax would go down a lot.

This is what happened last year. Everyone with homesteads went up 10% and everyone without homesteads doubled.

Most of us had our actual taxes go down even though the appraisal went up.

Further the state has limited taxing entities to 3% increases so your actual tax for everything except ISD should be limited to 3%

ISDs are actually limited but the tax we pay is essentially 1% of our appraised value, the state is trying to figure out what to do with the excess.

And I am looking at the actual amount we were assessed so I have no idea what you're talking about. It's clear our taxes went up and it's reflected in the increase in our mortgage.

[Austin97]

Originally Posted by riaelise

Unfortunately I expect the tax rates to go up too because at the city and county level, they're already talking about increases.

The tax rates float every single year.


tax rate = budget/total assessed value

your share of the taxes is your NAV/total NET/NAV

[Austin97]

Originally Posted by blameyourself

That makes zero sense. "Everyone with homesteads went up 10%". So it went up...just not as much as others.

And I am looking at the actual amount we were assessed so I have no idea what you're talking about. It's clear our taxes went up and it's reflected in the increase in our mortgage.

It makes zero sense because you dont understand how the taxes actually work.

You think it looks like

1) tax entity sets a rate which usually stays the same
2) appraisal district values properties
3) taxes entities get rate*value dollars which could increase 10% 20% or even more if Net appraised values increased by that much


When in fact it works like this:
1) tax entities determine how their budget increases which are capped at 3% increases unless approved by voters

2) appraisal district values properties

3) tax entities adjust the rate so that they raise their budgeted amount


In your world budgets could increase 10% 20% or even double.

In the real world budgets are capped at 3%

[Trainwreck20]

Originally Posted by blameyourself

That makes zero sense. "Everyone with homesteads went up 10%". So it went up...just not as much as others.

And I am looking at the actual amount we were assessed so I have no idea what you're talking about. It's clear our taxes went up and it's reflected in the increase in our mortgage.

What was your tax bill in 2021 and 2022? What was your net appraisal in 2021 and 2022?


Our net appraised went from 477,452 to 525,197 (10% higher in 2022)

Our taxes went from $9,158 to $9,044 (a 1.2% decrease).

If the AISD HSE hadn't gone from $25k to $40k, then our taxes would have been $9,194, so a slight increase.

That is what A97 is trying to explain, how that can happen.

If you are a homeowner in the CoA with the normal taxing entities and your net appraised went up by 10%, then your 'mortgage' payment should be basically unchanged. If it is different by any significant amount, it is 'wrong', although it is possible the mortgage companies are increasing projected taxes by way too much and will need to refund you at the end of the year. I hate escrowing taxes and always paid them myself.

Below is the worksheet for our 2021 and 2022 taxes and they match exactly with what the assessor billed us.

Edit: Looking at your tax rates, I see you are in WilCo and I am not sure on what jurisdictions apply to your address. But they are still decreasing by ~7.4% from 2021 to 2022. Your taxes should have gone up by ~2.5%, not the 10% value in your net appraisal.

[blameyourself]

Honestly Trainwreck, I don't know what you want me to say. You guys seem like you want to argue and I'm looking at a mortgage based on any increase in property tax (and looking at the Williamson County site). I guess Williamson County made a mistake. I'm tired of arguing about this.