Why are Property Taxes so High in Houston area?? (Center: renters, mortgages)

[detachable arm]

Originally Posted by Lowexpectations

Senior do get to cap their rates. It's much better to be homesteaded as a senior than non senior

Up to a certain predetermined point though. Once you pass that threshold you pay out the ass, even as a senior.

[Lowexpectations]

Originally Posted by detachable arm

Up to a certain predetermined point though. Once you pass that threshold you pay out the ass, even as a senior.

Up to what predetermined point?

[LocalPlanner]

Originally Posted by usc619

I'm sure most knew that I was referring to the metro area. Do you pay property taxes?

Folks who read your post but who are not from this area may very well not have understood the distinction.

Yes, I pay property taxes...everyone who owns a home or pays rent pays property taxes (the latter being indirectly).

It should be pointed out that most of those who live in a suburban subdivision (and sometimes neighborhoods within the City of Houston itself) also pay HOA dues annually, on top of their property taxes. It is a great thing, as it forces the direct beneficiaries of the services and amenities administered by the HOA (and the MUDs) to pay for them, instead of unfairly allocating the costs to others outside the neighborhood.

[fnh]

Oh hey look, the Republican tax relief plan for the rich includes a $10K cap on the property tax deduction. That's going to hurt Houston.

That's going to hurt, Houston.

[KerrTown]

Originally Posted by fnh

Oh hey look, the Republican tax relief plan for the rich includes a $10K cap on the property tax deduction. That's going to hurt Houston.

That's going to hurt, Houston.

Great, economic downturn in 2018 due to tepid consumer spending because of rising taxes.

[PinkLadyK]

Originally Posted by fnh

Oh hey look, the Republican tax relief plan for the rich includes a $10K cap on the property tax deduction. That's going to hurt Houston.

That's going to hurt, Houston.

I saw this and thought I misunderstood. Wouldn't the wealthy benefit from no cap? Or a much higher cap? Isn't this one part that is actually benefiting the middle class? Or am I still misunderstanding.

[swopoe]

Originally Posted by PinkLadyK

I saw this and thought I misunderstood. Wouldn't the wealthy benefit from no cap? Or a much higher cap? Isn't this one part that is actually benefiting the middle class? Or am I still misunderstanding.

The cap doesn't benefit anyone, really. Our property taxes are over $14k, so we will be affected by the cap. And we are not one of the wealthy or top 1%. If you have a house with high property taxes, no matter how much you make, the cap will hurt you.

[fnh]

A homeowner in high-property-tax Houston reaches $10K in property taxes on a ~$350K home. I think many here would consider a $350K home middle class, not extravagant.

We are losing the sales tax deduction, too, which impacts families in high sales tax cities - like Houston.

[fnh]

Originally Posted by swopoe

The cap doesn't benefit anyone, really. Our property taxes are over $14k, so we will be affected by the cap. And we are not one of the wealthy or top 1%. If you have a house with high property taxes, no matter how much you make, the cap will hurt you.

I agree with swopoe - a cap on the property tax deduction helps no one in particular. Individuals have little control over their home's tax valuation so it is unlike the cap on mortgage interest deduction which is decreasing from $1M to $500K. That arguably hurts middle class families in expensive cities, but at least buyers do have some control over the size of their mortgage and the mortgage interest they pay. Also, property taxes are taxes already paid that go toward public services. It makes sense to be able to deduct them from your federal taxes.

[swopoe]

Originally Posted by fnh

A homeowner in high-property-tax Houston reaches $10K in property taxes on a ~$350K home. I think many here would consider a $350K home middle class, not extravagant.

We are losing the sales tax deduction, too, which impacts families in high sales tax cities - like Houston.

Yup, that hurts us too because we deduct sales tax. Ouch.

At least the mortgage interest deduction change will be for future purchases and not homes already purchased. So if you aren't planning to move to and mortgage an expensive house for now, at least that one won't affect you.

And no more deductions for donations to charity either. At least I think I read that.