Boerne and Bexar Tax Jurisdictions combined tax hit

[smuboy86]

Originally Posted by Rebecca Halstead

My son just got his annual escrow account disclosure statement and found out that he pays property taxes in Bexar County and school taxes in Comal County. He has been informed that there is a shortage amount and his house payment is going to double. He pays a little over $1000 and now he will be paying $1900 unless he can come up with the shortage amount which is over $5000. Talk about a shock to a first time home buyer - I am sure every young hard working couple can afford to double their mortgage payment at the drop of a hat!

By federal law any shortage will be spread over a 12 month period, it must be a significantly larger amount than $5000 to bring it to $1900. It's a hard lesson to learn for sure.

[Penquin927]

I guess I am confused. I also have Bexar County and Comal ISD. I don't escrow but my total last year was about $1800 (Bexar) and $2200 (Comal). This has been pretty consistent for the past 9 years. Never jumps to where it doubles in cost. Of course my property taxes do not affect my mortgage payment. I just don't understand where a shortage is for $5000. Does your son have a large home/land that the property value has gone extremely high?

[WVREDLEG]

Originally Posted by Penquin927

I guess I am confused. I also have Bexar County and Comal ISD. I don't escrow but my total last year was about $1800 (Bexar) and $2200 (Comal). This has been pretty consistent for the past 9 years. Never jumps to where it doubles in cost. Of course my property taxes do not affect my mortgage payment. I just don't understand where a shortage is for $5000. Does your son have a large home/land that the property value has gone extremely high?

IF it was new construction, the assessed value was made at the unimproved amount and her son was paying less for one or more tax years, depending on when the home closed. Property tax was on the lot..it takes the taxing authority time (next assessment window after recording) to catch up. Not that it reduces the pain of the jump in cost, but I am 99% sure this was merely the assessment changing to reflect the property value with a home on it. It is something the buyer has to pay attention to in a new construction purchase. The GFE will ballpark the taxes and the lender only gets excited if the escrow does not cover the bills, hence the notice that the escrow account was short.

Personally, I was billed and paid $500/mo less than estimated the first year in my new construction, so I set aside the difference and did not get surprised by the escrow account being several thousand short. As smuboy states, for large amounts, the lender (usually the escrow holder), has to pro-rate across 12 months if you do not want to pay a lump sum. This is routine for property tax assessments on new construction.

IF the home was not new construction, I don't know why it might jump so much in one year.

[Penquin927]

My home was new construction and still I never had this issue. I had to have the appraisal done on the home prior to settlement and that is what my taxes were on for that year. It wasn't based on just the land value prior to the build.

[WVREDLEG]

Originally Posted by Penquin927

My home was new construction and still I never had this issue. I had to have the appraisal done on the home prior to settlement and that is what my taxes were on for that year. It wasn't based on just the land value prior to the build.

It happened to me here and in Virginia in 2008, both new construction purchase, one VA and one conventional. The way she describes her son's shock and being a new buyer, the taxes were either not paid by the escrow and caught up, the taxing authority and owner did not get the tax bill to the lender (rare but happens), or the assessment for the construction had not shown in the first year the taxes were billed. A $5K increase in escrow for taxes equates to (a rough swag here) an increase of $250K in property value, not indicative of the RE market we are in here. Just my guess.

Oh, and the sticker shock is from the lender wanting the $$ to cover the taxes due PLUS the escrow adjustment to meet the billing dates for next tax year. $900 is $450/mo to catch up and $450 toward next year....after he catches up, his monthly will decrease back to the combined tax bill, homeowners insurance, etc divided by 12. Roughly in this example, $1450/month.

[AlamoCpl]

Numbers from an agent who works that area.

Boerne City 2.146074
ISD - Boerne 1.294000
Bexar County *ESD #4 0.082025
Bexar County 0.770049

Total Taxes 4.292148

[Kedakid]

TXStrat What about exemptions do they apply to Bexar county, Kendall county or both?

[kent005]

Hello, I just received my property tax statement from both Bexar and Kendall County. They both include the same exact charge for Boerne ISD. I can't imagine I have to pay both (double taxed for the same service)?