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Old 12-09-2006, 10:42 AM
 
Location: Los Angeles ----> Houston
16 posts, read 46,454 times
Reputation: 14
Property taxes are calculated on the assessed value of the home. That, generally, approximates the market value. (You may get a break on your first year if you buy from a builder and the property is assessed to the value of the land only).

You have to be very careful about the selection of the neighborhood though. Depending on the school district and the utility district taxes can range from 2.36% to over 4%! (Big difference! Rates did get a small reduction in 2006 compared to 2005 -if it helps).

Do not trust the MLS info on the tax rate and especially the tax amounts mentioned. Go to HCAD.org to find your intended subdivision's tax rate, apply the homestead exemption (if applicable; see previous post) and multiply with the purchase price of your home. That should be the maximum tax you'll be paying, unless you get your home at a significant discount to its market value.

Unfortunately, unlike California for example, your annual assessed value will be adjusted to the market value every year. On an appreciating market that's not so good, and on a depreciating market there may be a need for some effort on your part to get the taxes lowered the following year. (Assessed values won't be adjusting downwards at the same pace as the market I suspect).
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Old 12-10-2006, 08:49 PM
 
Location: Los Angeles
202 posts, read 574,798 times
Reputation: 141
What is MUD tax? Also are property taxes less if you live in an area that is out in the country. (like Magnolia?) Is it possibe that the farther out in the middle of nowhere you are, you would pay less property tax?
Are property taxes less in some countys?
Thanks for any replys Can you tell, I am worried about property tax?LOL!!
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Old 12-10-2006, 10:42 PM
 
Location: Western Bexar County
3,823 posts, read 9,544,860 times
Reputation: 1776
Default Everything You Wanted to Know about MUD

What You Need To Know About Municipal Utility Districts
What is a MUD?
A Municipal Utility District (MUD) is a political subdivision of the State of Texas authorized by the Texas Commission of Environmental Quality (TCEQ) to provide water, sewage, drainage and other services within the MUD boundaries.

How is a MUD created?
A majority of property owners in the proposed district petitions the Texas Commission of Environmental Quality to create a MUD. The TCEQ evaluates the petition, holds a public hearing, and grants or denies the petition. After approval, the TCEQ appoints five temporary members to the MUD's Board of Directors, until an election is called to elect permanent Board members, to confirm the MUD's creation, and to authorize bonds and taxing authority for bond repayment.

How does a MUD work?
The publically elected Board of Directors manages and controls all of the affairs of the MUD subject to the continuing supervision of the Texas Commission of Environmental Quality. The Board establishes policies in the interest of its residents and utility customers. A MUD may adopt and enforce all necessary charges, fees and taxes in order to provide district facilities and service.

Will my taxes be higher in a MUD?
MUD tax rates, like all property tax rates, vary according to property values and debt requirements. MUD rates generally decline over time as the MUD is built out and operating and debt service costs are shared by more homeowners.

How do MUDs provide for parks, pools and recreation faculties?
In addition to their common functions of water and wastewater service, MUDs are legally empowered to engage in conservation, irrigation, electrical generation, firefighting, solid waste collection and disposal, and recreational activities (such as parks, swimming pools, and sports courts). A MUD can provide for itself the recreational amenities that are approved by the Board of Directors and funded by the District.

What is a developer's responsibility to MUDs?
Developers must petition the Texas Commission of Environmental Quality to create a MUD. Developers are prohibited from serving or placing employees, business associates, or family members on the MUD Board of Directors. Developers must pay for or put up a letter of credit equal to 30% of the cost of subdivision utilities. This requirement ensures against "fly-by-night operators" who are not committed to the success of the MUD. The "30% rule" also offers protection to MUD residents in the event that a subdivision is not built according to schedule. Unless they are voting residents within a MUD, developers have no authority or control over the MUD's Board of Directors. If they are voting members of a district, they have the same power to vote and attend Board meetings as any other resident.
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Old 12-11-2006, 03:32 PM
 
485 posts, read 964,246 times
Reputation: 144
I lived for a number of years in the Clear Lake City portion of Houston. Although this area is in Harris County and is assessed by Harris Cty for city and various other taxes, the school district (Clear Creek ISD) has portions in both Harris and Galveston Counties. Because of this, the ISD had the right to use either the Harris or Galveston Cty assessment to determine what taxes were owed to the school district. Since the Galveston Cty assessment was considerably higher, they obviously used that one. My point is that the HCAD website given by a previous would not give a true picture of total taxes owed since the school taxes are at least 2x the other taxes combined. Be sure you research the particular area that you are interested in and make sure that school taxes are included if using data from HCAD website.
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Old 02-26-2007, 09:48 PM
 
1 posts, read 11,835 times
Reputation: 10
I'm missing something here. (I'm from the UK investigating moving to the States, was looking at Florida but now at Houston)

Surely changes in appraised property values are only relative to other properties?

ie. the county (or whatever) needs to raise $x million for running costs. They total up the values of the appraised properties in the area and derive a millage value, so each property pays their relative share.

So even if all the property values doubled in the following year then the millage value should half to generate the same revenue.

This is exaggerated of course, some properties will go up, some will (should?) go down and the revenue required will always go up by a percentage each year but the principle is the same - any change in a given property's tax should depend only on the relative, not absolute, value of the appraisal plus the percentage revenue increase.

Please tell me what I am missing.

Cheers
Simon
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Old 02-27-2007, 10:42 AM
 
Location: WA
3,945 posts, read 12,313,314 times
Reputation: 2736
Quote:
Originally Posted by simmotech View Post
I'm missing something here. (I'm from the UK investigating moving to the States, was looking at Florida but now at Houston)

Surely changes in appraised property values are only relative to other properties?

ie. the county (or whatever) needs to raise $x million for running costs. They total up the values of the appraised properties in the area and derive a millage value, so each property pays their relative share.

So even if all the property values doubled in the following year then the millage value should half to generate the same revenue.

This is exaggerated of course, some properties will go up, some will (should?) go down and the revenue required will always go up by a percentage each year but the principle is the same - any change in a given property's tax should depend only on the relative, not absolute, value of the appraisal plus the percentage revenue increase.

Please tell me what I am missing.

Cheers
Simon
Yes, in general all go up equally but since the properties are appraised based primarily on sales the more desirable areas will go up in value more rapidly and therefore pay higher taxes.

Texas had very low real estate values compared with much of the country and set relatively high tax rates to float local government. With the rapid rise in housing values over the past ten years the taxes have gone up but few local governments have lowered rates... it seems government spending at all levels has no bounds.

Texas law only allows taxes on each individual property to increase 10% each year but with the rapid rise in real estate and change in value if you improve your property, it is easy to see that increase annually.

I bought a condo in Dallas ten years ago and the taxes have increased 10% every year; only the legal cap keeps them from increasing even faster. If I am successful in selling the new owner will pay 30% more (more than 3 times the annual taxes I paid ten years ago) with prospects of regular increases.

I have moved out of Texas to get away from the taxes as well as the heat, congestion, immigration problems, etc. but have no doubt the same problems will affect the entire country in time without better leadership and policies.
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Old 02-28-2007, 08:58 AM
 
Location: North East New Jersey
22 posts, read 82,208 times
Reputation: 19
Quote:
Originally Posted by shannon94 View Post
What's with the worry over taxes? I only pay 2600 a year property tax. My friends that are still in California pay way more than that.

There is no STATE tax.

What county do you live in Shannon94? I'm thinking about Texas, I'm in Jersey where the taxes are crazy and I want to make sure that is a non issue where I move next. My taxes in NJ go up about $600, i won't be long before I'm in $1000 a month just in property taxes and yes we pay sales and income tax, plus I have to commute to NY to get a desent job so I'm paying both states.
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Old 03-02-2007, 10:38 PM
 
25 posts, read 93,682 times
Reputation: 22
Default Can't you claim the property tax you pay against your federal income tax?

just wondering... can you claim back the property tax from your federal income tax?
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Old 03-03-2007, 07:42 AM
 
1,888 posts, read 4,392,228 times
Reputation: 949
Quote:
Originally Posted by sazza View Post
just wondering... can you claim back the property tax from your federal income tax?

Yes, and your mortgage interest.
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Old 03-03-2007, 06:07 PM
 
25 posts, read 93,682 times
Reputation: 22
Quote:
Originally Posted by AustinTraveler View Post
Yes, and your mortgage interest.
OK, so most people can "get" what they paid, back? So you dont really pay that much property tax? Where we are from, this is not a tax deduction.
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