Rising Property Tax and Property Tax Reform Bill (Houston, Hidalgo: sales, mortgage)

[marykate1]

Hi,

I was calculating my Tax for last year (2018) and realized that my property tax went up $300 a year. This is insane amount even though I have homestead exception.

I have contacted Conner and Associates and they did not do anything.

I have contacted AppealPropertyTax.com and they did not do anything.

Is there any reason to own a home these days? If I even pay my house in few years then in the near future the property tax will reach the mortgage amount.

I read about the bill which will cap the property tax increase to 2.5% instead of 10% (current). Here is the link to the bill. What do you think? Mayor Sylvester Turner and Harris County Judge Lina Hidalgo is already working on getting RID of this bill or oppose this bill.

https://www.houstonpublicmedia.org/a...x-reform-bill/

[WRM20]

Originally Posted by marykate1

Hi,

I was calculating my Tax for last year (2018) and realized that my property tax went up $300 a year. This is insane amount even though I have homestead exception.

I have contacted Conner and Associates and they did not do anything.

I have contacted AppealPropertyTax.com and they did not do anything.

Is there any reason to own a home these days? If I even pay my house in few years then in the near future the property tax will reach the mortgage amount.

I read about the bill which will cap the property tax increase to 2.5% instead of 10% (current). Here is the link to the bill. What do you think? Mayor Sylvester Turner and Harris County Judge Lina Hidalgo is already working on getting RID of this bill or oppose this bill.

https://www.houstonpublicmedia.org/a...x-reform-bill/

Your property tax went up by $300? that's not a lot. Mine has consistently gone up by $400 to $600 per year as property values rise.

The new law doesn't cap increases at 2.5%, it requires a tax election if a taxing entities tax revenue goes up by 2.5% over the prior year. You are confusing that with the 10% cap on homesteaded property year on year increases.

[marykate1]

>> Your property tax went up by $300? that's not a lot. Mine has consistently gone up by $400 to $600 per year as >>property values rise.

Is there any point of owning a property in Houston? The property does not gain equity at a decent rate. Also the tax is too high and it will eventually reach mortgage payment.

[bu2]

Originally Posted by marykate1

>> Your property tax went up by $300? that's not a lot. Mine has consistently gone up by $400 to $600 per year as >>property values rise.

Is there any point of owning a property in Houston? The property does not gain equity at a decent rate. Also the tax is too high and it will eventually reach mortgage payment.

Move to California and buy a closet for the price of a home in Houston and pay thousands in state income tax.

[marykate1]

At least properties in CA gain equity much quickly than Texas!!

[AliefNorth]

Houston has such a lowwww COL. Houses in Houston are soooo cheap. Let’s all move to Houston it’s soooo cheap

[houston-nomad]

Originally Posted by marykate1

Hi,

I was calculating my Tax for last year (2018) and realized that my property tax went up $300 a year. This is insane amount even though I have homestead exception.

I have contacted Conner and Associates and they did not do anything.

I have contacted AppealPropertyTax.com and they did not do anything.

Is there any reason to own a home these days? If I even pay my house in few years then in the near future the property tax will reach the mortgage amount.

I read about the bill which will cap the property tax increase to 2.5% instead of 10% (current). Here is the link to the bill. What do you think? Mayor Sylvester Turner and Harris County Judge Lina Hidalgo is already working on getting RID of this bill or oppose this bill.

https://www.houstonpublicmedia.org/a...x-reform-bill/

It would be great to get property taxes under control. However it's really our only revenue for the city/county. If less money comes in, city/county can't balance budget. We'd need something new like a sales tax, good luck passing that legislation. That's why mayor and judge oppose this.

[AliefNorth]

Originally Posted by houston-nomad

It would be great to get property taxes under control. However it's really our only revenue for the city/county. If less money comes in, city/county can't balance budget. We'd need something new like a sales tax, good luck passing that legislation. That's why mayor and judge oppose this.

So how was the city managing revenue 20+ years ago when property taxes were much cheaper than now?

[WRM20]

Originally Posted by AliefNorth

So how was the city managing revenue 20+ years ago when property taxes were much cheaper than now?

20 years ago there was no revenue cap(the one that applies directly to the City via a Charter amendment years back, not the 2.5% proposed in the Lege), so the city was able to raise taxes when more revenue was required. In addition, certain costs, like health care, had not risen faster than inflation. And, the pension costs were ignored, and the pensions not properly funded.

[astrohip]

Originally Posted by marykate1

I was calculating my Tax for last year (2018) and realized that my property tax went up $300 a year. This is insane amount even though I have homestead exception.

A few random thoughts:

* Going up "$300 a year" means nothing without perspective. If your taxes were $1,200, then $300 is crazy. If your taxes were $12,000, then it's not as big an issue.

* Comparing it to a mortgage payment "in the near future the property tax will reach the mortgage amount" again means nothing. Mortgage payments are dependent on so many other factors (down payment, interest rate, etc) that no comparison means anything.

* Taxes (and money) are fungible. It has to come from somewhere. We either lower spending or raise taxes. Without any other steady form of income (eg, income tax), property taxes win. Or lose in your case.

So where does the money come from to run our local governments and school districts? I'll let you answer.



PS: I am no fan of how our property taxes are designed here in Texas, and would love to see a cap and other changes (eg, business properties taxed like residences are). If for no other reason than to force governments to face spending limits. But that doesn't make many of the illogical arguments used against it these days any better.