Homestead Tax???? (The Woodlands, Spring, Center: homeowners insurance, crime rates, mortgage)

[MJPost32]

Can someone explain the Homestead tax to me? I live in Charlotte now and we don't have that. We left the NE due to high taxes and now live outside of Charlotte with very cheap taxes but high suburb crime rates. I pulled this information up from the Woodlands website. How do you calculate Homestead and why don't they just post that rate? Thanks! I have no clue how it works. The taxes just seem pretty high like the NE!

Local Tax Information (Before Homestead)
School District 1.58
Harris County 0.81
MUD #385 1.25
Homeowner's Association 0.455
Total: 4.095


(per $100 valuation)
Tax rates subject to change without notice.

[Bike4Life]

If you don't like paying high property taxes, then stay home.

[SkyeAnjel]

homestead exemption wii take about 10% off of you taxes, and taxes are high here but homes prices are low and cost of living is lower then alot of olaces. In The Woodlands, auto and homeowners insurance is less expensive(Montgomery County) the Harris County but home prices are less expensive for the most part in Harris County.
There is no comparison to the NE, as you can get a 10 year old 3000 sq. foot home with a pool, water softener, granite counters, 4 bedrfoom, 3.5 bath home in THe Woodlands close to Town Center(which is unbelievable!) for 325,000.
You can get the same home in Klein for a little less with top of the line schools. YOu don't get that in the NE.

[MJPost32]

So they take 10% off your bill at the end of the year? Is that refunded to you or do they take it off each month? Thanks!

What is the purpose for it?

Which section of the Woodlands should I be looking at..close to the town center? i know there are different villages we would be in the $225-350 range depending on when we move and what we get for our current house in 2-3 yrs.

[SkyeAnjel]

Town Center is awesome, that is where the movie theatre, restaraunts, the new waterfall, the mall etc is. It is very pretty. You can get a nice home in your price range,I like Cochrans Crossing, Indian Springs, Panther creek,Alden Bridge, and Sterling Ridge. They are all not far from Town Center. I would not look in Harpers Landing because it is on the east side and near the RR tracks which can be harder for resale.
As for Homestead, you file a form in January( your realtor should send that to you when it is time to file although not all of them do), and you just send it in and and your done. Most of the time, taxes are escrowed into your mortgage so the mortgage company pays all that for you, it lowers your overall motgage when your taxes are lowered. You will get statements from your mortgage company.
Again, a mortgage lender is best to explain how it works.

[MJPost32]

Yeah we are in new construction now and if we tried to sell in less then 3 yrs. we definitely would not make any money so we are trying to stick it out!

Thanks for the heads up about the railroad tracks. We are going to come down for a visit next summer!

Interesting about the taxes though...thank you!

Does it matter what time of year you settle?

[jff.law]

The homestead tax is based on the share of property taxes paid by the residential class of property owners in the year before the new assessments from the revaluation project are used.
For example, assume that residential properties paid 40 percent of all town taxes in the Town of Smith in 1989 (the year before the revaluation project). Now, in 1990, as a result of the revaluation, the residential class represents 50 percent of the town's total taxes. As an "approved assessing unit" that has opted to use the "homestead tax option", the Town of Smith can "freeze" the residential class share of town taxes at the previous 40 percent. Thus, the town will have two tax rates: one for the residential class and another for all other property classes, such as commercial property and industrial property. The difference is that the tax rate for the residential class will be lower than the tax rate for all other property classes. For example, the town tax rate for the residential class might be something like $25 for each $1,000 of assessed valuation, while the tax rate for the nonresidential class might be $30 for each $1,000 of assessed valuation.

[SkyeAnjel]

Exemptions

Thanks JFF for further explanation. I found the above link and thought I would share.

[MJPost32]

didn't realize cars were taxed there too! We thought it was just a NC thing!

[malustarwy]

I have the same problem with the MUD and water bill. At fort bend mud 58, the mud tax stay for years at 1.5, and look at this month's water bill, the 'sewer' base rised to $27.15 from $10. We are paying too much for water system. And I have no idea where and how we can understand the tax/bill, ask for a reasonable adjust, and discuss about the over-billing.