Travis County Property Appraisals Now Available (Austin, Howe: low income, for sale, real estate)

[CarnivalGal]

https://traviscad.org/propertysearch

Mine went down (slightly). But I'll still pay 10% more every year to catch up.

And just for fun, the land value of my property has gone from $77,000 to $378,000 in two years. The dirt my house sits on hasn't changed. I have been told that TCAD increases land value on well-established areas like that to make it harder to protest. Can't get comps on land if there has been no land sold.

[blameyourself]

Originally Posted by CarnivalGal

https://traviscad.org/propertysearch

Mine went down (slightly). But I'll still pay 10% more every year to catch up.

And just for fun, the land value of my property has gone from $77,000 to $378,000 in two years. The dirt my house sits on hasn't changed. I have been told that TCAD increases land value on well-established areas like that to make it harder to protest. Can't get comps on land if there has been no land sold.

Of course you will (as will everyone else). Riaelise's thread addresses this. It's going to be a long road to hoe if something isn't done.

[CarnivalGal]

Originally Posted by blameyourself

Of course you will (as will everyone else). Riaelise's thread addresses this. It's going to be a long road to hoe if something isn't done.

TBH, we'll probably sell it before we ever catch up. Likely will be leaving Texas in a couple years.

[blameyourself]

Originally Posted by CarnivalGal

TBH, we'll probably sell it before we ever catch up. Likely will be leaving Texas in a couple years.

I don't blame you one bit. My intent initially was to retire here. But I'm actually reconsidering it myself. I just can't see having a property tax bill in the ballpark of $20k+ in retirement. Our tax on our other property just outside SF is about $6k right now and it only increase a little over $100 a year (2% vs 10% here in Texas). This is going to get insane here. All the while, people keep talking about this awesome surplus the state has. I'm not seeing much relief extended to property owners. There's certainly some debating going on but that amounts to merely hundreds, while some of these property tax bills are increasing over $1000.

[Trainwreck20]

Originally Posted by CarnivalGal

https://traviscad.org/propertysearch

Mine went down (slightly). But I'll still pay 10% more every year to catch up.

And just for fun, the land value of my property has gone from $77,000 to $378,000 in two years. The dirt my house sits on hasn't changed. I have been told that TCAD increases land value on well-established areas like that to make it harder to protest. Can't get comps on land if there has been no land sold.

My 2023 is not showing up yet

[CarnivalGal]

Originally Posted by blameyourself

I don't blame you one bit. My intent initially was to retire here. But I'm actually reconsidering it myself. I just can't see having a property tax bill in the ballpark of $20k+ in retirement. Our tax on our other property just outside SF is about $6k right now and it only increase a little over $100 a year (2% vs 10% here in Texas). This is going to get insane here. All the while, people keep talking about this awesome surplus the state has. I'm not seeing much relief extended to property owners. There's certainly some debating going on but that amounts to merely hundreds, while some of these property tax bills are increasing over $1000.

My mom (retired) just sold her house here in Austin and is in Pennsylvania looking at houses as I type this. She's been here for 30 years but has decided to leave, for many reasons. Her house here was paid off, and she's looking to purchase a house there for about the same price, so no mortgage. But her property taxes will be substantially lower. PA does have a state income tax, but since she's retired, she doesn't really have income, so that doesn't affect her. And even if it did, the total tax burden per resident in PA is less than TX, even with the state income tax.

What really chaps my hide is that Texas' system taxes us on unrealized gains. My assessment actually went down a little this year, but I'm not getting a refund for $$ I paid on last year's value.

[Trainwreck20]

Originally Posted by CarnivalGal

[...]
What really chaps my hide is that Texas' system taxes us on unrealized gains. My assessment actually went down a little this year, but I'm not getting a refund for $$ I paid on last year's value.

No, they never claim to tax on gains, only on value. You likely COULD have sold it for that value but did not.

That aside, did your Net Assessed actually go down this year? With the huge jump in most properties appraised values, it would be odd to see the net appraised (which the taxes are paid on) actually go down.

[CarnivalGal]

Originally Posted by Trainwreck20

No, they never claim to tax on gains, only on value. You likely COULD have sold it for that value but did not.

That aside, did your Net Assessed actually go down this year? With the huge jump in most properties appraised values, it would be odd to see the net appraised (which the taxes are paid on) actually go down.

Right. I get how it works. But it's no different than being taxed on the value of our 401K when it goes up, like it was income, even if we never sold any holdings or realized any of that gain.

You are correct. Our assessed value didn't go down. However, it has in the past. Don't remember the year, but it was a few years after we bought our house.

I know this is sacrilege in Texas, but I would much rather have a state income tax than the Texas property tax system. I've lived in states with both.

[Trainwreck20]

Originally Posted by CarnivalGal

Right. I get how it works. But it's no different than being taxed on the value of our 401K when it goes up, like it was income, even if we never sold any holdings or realized any of that gain.

You are correct. Our assessed value didn't go down. However, it has in the past. Don't remember the year, but it was a few years after we bought our house.

I know this is sacrilege in Texas, but I would much rather have a state income tax than the Texas property tax system. I've lived in states with both.

Oh, yeah, our value has gone up and down over the years. Back in 2008ish time frame was the last 'big' drop, although there was the dot-com bust back in 2001-2002 that dropped the value, too. What is (relatively) nice about a drop in value is that you get to 'reset' your 10% cap level, so if it is followed up by a big year, you don't have the higher net appraised but a lower cap instead.

I get that some people prefer income and some property, have no issue with people having different preferences. But for my family, property tax works out much better for us. It would have to be very low state taxes to off-set the property tax. For many two-income households, that is the case, but depends on the dollar amount, ofc. But to be honest, I trust the politcos at the state level setting my tax rates less than the local politicos.

[Trainwreck20]

Originally Posted by CarnivalGal

My mom (retired) just sold her house here in Austin and is in Pennsylvania looking at houses as I type this. She's been here for 30 years but has decided to leave, for many reasons. Her house here was paid off, and she's looking to purchase a house there for about the same price, so no mortgage. But her property taxes will be substantially lower. PA does have a state income tax, but since she's retired, she doesn't really have income, so that doesn't affect her. And even if it did, the total tax burden per resident in PA is less than TX, even with the state income tax.

What really chaps my hide is that Texas' system taxes us on unrealized gains. My assessment actually went down a little this year, but I'm not getting a refund for $$ I paid on last year's value.

We have looked at various states and tax setups for when we retire. PA has not been on our radar so I have not looked at it and am not very familiar with the mechanics. So I went to poke my nose into it.

It looks like PA rates are relatively high (compared to nationally) but prices aren't as bad. No exemptions for senior citizens UNLESS you qualify as low income (<$35,000/yr), which is quite possible for anybody living off SS and not too much else, I would think? If you meet the requirements, then all your property taxes are frozen (not reduced).

Picked a few random properties in York County that are for sale:
1200 sf
Last sold 15 years ago for $118k
currently asking $225k
$4.1k/yr in taxes

2,000 sf
Current appraisal $191k
Currently asking $350k
$6.6k/yr taxes

1,500 sf
Last sold 7 years ago for $150k
Currently asking $240k
$3.7k/yr in taxes

Taxes are lower, but not negligible, and much of the difference is in the value not the rate. I.e.my current effective rate (taxes/value) is 1.72 and these York properties are 1.8, give or take a tenth. If you are <$35k income, then that is a huge savings. If you are not, taxes will go up with inflation (I don't see any freeze) and 10 or 15 years down the road, your taxes may be pretty high. They may also, ofc, change the freeze requirements which would help fixed income.

I know next to nothing about PA, so not sure if York county is an outlier. PA does have a lower sales tax, it appears.....

There is a 4.5% inheritance tax on the value of an estate (including the house) when a descendant is the heir. 12-15% when to anyone else (sibling, in-law, etc). Home improvement and real estate sales have a 1% state tax.