Question regarding property taxes... (Spring, Howe: mortgage, houses, neighborhoods)

[Zzyzx]

Originally Posted by eichlerfan

We are still waiting for the sale of our home, but we are seriously considering Highpointe in southwest Austin as we really like the area. However my husband is having a really hard time with the property taxes there that would be approximately 12,000 per year. We understand it's a newer development, but once established (however long that will be) does anyone know if taxes generally go down at all once an area is all developed?

Thanks in advance.

The taxes are shocking and what is even more shocking to me was the ho-hum attitude that long time residents have on the matter. I call it "The Boiling frog syndrome."

I have noticed when they pass bonds here, they will campaign saying it will help the schools, or some other social matter that plays on the psyche of the taxpayer. It will add ONLY $25.00 per 200K home they say(or some small number). Now, do that every election cycle for decades and you have what you see today.

As far as Highpointe specifically, we do have a MUD district here and in theory is supposed to go down eventually. That is .95% of our tax bill.

[eichlerfan]

Originally Posted by stillkit

If you or your husband are a 100% disabled Veteran, as determined by the VA, you would now qualify for a total exemption from all property taxes, beginning on Jan 1 of this year.

There is also an exemption of a portion of your taxes if you are disabled under the Social Security rules. It is not a total exemption, but a reduction in the taxable value of your house for certain taxing entities. For instance, it freezes your school taxes right where they are (the largest portion of your tax liability) unless you make changes to the house, and it lets you string out the payments in four equal installments, rather than a lump sum in January of every year.

And the part I hate is having so much of the tax liability be for school taxes since we homeschool.

[Zzyzx]

Originally Posted by eichlerfan

And the part I hate is having so much of the tax liability be for school taxes since we homeschool.

How about having the tax liability with no kids like my wife and I. Then to add insult to injury, my neighbor across the street who has 4 kids gets a tax write off. So basically I pay for his kids schooling while he gets the benefit of a tax write off

[TexasHorseLady]

Our kids are grown, and for a good part of their school years, they were in private schools, and we paid school taxes. However, since, as a citizen, I have a strong interest in education and in having an educated populace (the people that I deal with on a daily basis and the people who make decisions that impact me), I have no problem paying school taxes; it's in my own interests to do so.

As for coming here from elsewhere and being shocked at our complaisance regarding property taxes, I've noticed that often the people that react that way (not saying the person who posted here on that falls into that category, just to be clear) at the same time try to convince us that we should have income taxes, like they're used to. Of course, they often have property taxes, as well, where they come from, but since the taxes are split up into income and property taxes (the latter being lower than ours), even though taken together they're pretty close to our property taxes sans state income taxes, they don't seem to be as much.

It's really all in what you're used to. New place, new ways, thus the "When in Rome, do as the Romans do" (yeah, this - thinking that however they do it in your new home that's different from the way you did it where you came from is "wrong" or "weird" - has been a problem for a long, long, long time, it would seem ).

[hoffdano]

Originally Posted by Zzyzx

The taxes are shocking and what is even more shocking to me was the ho-hum attitude that long time residents have on the matter. I call it "The Boiling frog syndrome."

I have noticed when they pass bonds here, they will campaign saying it will help the schools, or some other social matter that plays on the psyche of the taxpayer. It will add ONLY $25.00 per 200K home they say(or some small number). Now, do that every election cycle for decades and you have what you see today.

As far as Highpointe specifically, we do have a MUD district here and in theory is supposed to go down eventually. That is .95% of our tax bill.

Bonds DO get defeated, probably more often than you realize. Round Rock ISD not long ago attempted a $300+M bond package and it was resoundingly defeated because it was poorly constructed.

School bonds are all about schools. And they do not have anything else to do with general social matter. The school bonds, at least in the Austin area, are usually related very closely to enrollment growth. Most school districts don't create bond elections more often than every three years. And the tax rates usually don't change from year to year more the 5-10 cents. They don't keep going up because the amount of taxable property usually grows and old bonds are retired.

[hoffdano]

Originally Posted by Danbo1957

That's a tax rate of 2.25%. The Texas average of 1.80% is the second highest state property tax rate in the country... brutal.

Yes - it is high - but because the appraised value of homes in Texas is generally lower than other states the actual out of pocket taxes is not much different. 2% on $200,000 = $4,000 but in California that same house might be $600,000. At a 1% tax rate the property tax bill in California would be higher.

Let's not forget that on a national basis Texas ranks 43rd in total state and local tax burden.

The Tax Foundation - Texas' State and Local Tax Burden, 1977-2008

[iceshots]

HighPointe and Belterra have some of the highest tax rates in the Dripping Springs area due to the MUD.

You pay what you get for.

[Exiled Texan]

My "issue" with property taxes is it forces people who have long paid for their homes but have now retired (without any income) to downsize.

Thought one of the perks of old age was having paid off your home and able to live in it until they carry you out in a pine box. I understand they freeze property taxes when you hit a certain age, but when you retire....your income drops....it doesn't stay the same.

[woodinvilleguy]

It can be worse. California has high income tax that taxes my dad's retirement to an almost unlivable amount. In addition to that there is property tax which is high because of the higher property values so that is a wash with us. And on top of that, sales tax is 9.5% now.

[anothertntony]

Originally Posted by TexasHorseLady

What's the first?

Perhaps New York. Where I live, the taxes range from about 2% to 4.5% (generally around 3%). The terrifying numbers are available here:

http://www.osc.state.ny.us/localgov/...2008table2.xls

Of course, we also have state income taxes. For 2008, the Tax Foundation ranked Texas #43 in total state-local tax burden with New Jersey #1 and New York #2:

The Tax Foundation - State and Local Tax Burdens: All States, One Year, 1977-2008

So rejoice - you have one of the lowest tax burdens in the country!