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Old 09-04-2009, 10:31 PM
 
656 posts, read 1,415,159 times
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As you all know, texans pay the highest property tax rates in the nation along with the highest insurance and utility rates. A lack of a state income tax is no excuse for that, but I will touch on an overlooked topic.

I recently found out that Texas a "Non disclosure state"

So the assessor cannot really find out what a property is worth, they have to make an educated assessment, they do so by using listing prices, price per square feet as reported by real-tors and statistical information as well as listed rental information.

Do Commerical owners pay the same burden, I once found a commerical property with a tax rate of .6%, 4 times lower than what the average homeowner pays.

Your thoughts and more answers inquiries about high property tax rates later on perhaps in a separate posting.


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Old 09-05-2009, 10:46 AM
 
656 posts, read 1,415,159 times
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Case in point,

I recently looked at a commercial property for sale in Texas, give its rate of return it was listed for $1 million,

however the taxes were about 5000-6000k , I don't remember the exact figure but it was 5 something.

In contrast a 1 million dollar house or other commericial property or office may be $25,000 a year in property taxes.

Your thoughts.
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Old 09-05-2009, 08:29 PM
 
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Quote:
Originally Posted by tech2enable View Post
Case in point,

I recently looked at a commercial property for sale in Texas, give its rate of return it was listed for $1 million,

however the taxes were about 5000-6000k , I don't remember the exact figure but it was 5 something.

In contrast a 1 million dollar house or other commericial property or office may be $25,000 a year in property taxes.

Your thoughts.
You are correct. But you only have to look at million dollar properties on lake travis with similar tax rates to see that some people are getting a free ride as well.

Even though it would cause my taxes to go up, I am for disclosure.
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Old 09-05-2009, 11:22 PM
 
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If a property owner isn't being their fair share, then someone else has to pay the bill right.

The Texas assessor doesn't know the true value of the property sometimes but I have read that people who live in similar looking homes in a subdivision can be hit hard since all the homes are identical pretty much and easier to assess.

I thought the property around lake travis, is that same as lost creek? are high though, do homeowners really get a break, I understand they might but I was referring more towards commercial property, I have no idea about industrial or

other properties although I note you can get further tax breaks by having livestock on your property which can be abused by wealthy homeowners with big lots and animals in contrast to traditional farmland owners.
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Old 09-06-2009, 08:55 AM
 
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The same tax rate applies to commercial and residential properties, based upon the property's market value. However, certain exemptions are available for residential properties such as the homestead exemption and over 65, etc.. So residential taxes based upon a percentage of overall market value, is usually a bit lower for residential real estate. Yes, Texas is still one of the few states that is "non-disclosure", meaning sales prices are not made public. Makes it tough for us appraisers.
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Old 09-06-2009, 11:23 AM
 
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Default I'm aware but

In theory they pay the same tax rate, but the appraisal value is different,

since Texas of course has no state income tax, income producing properties may be harder to value in certain instances, maybe it may be easier based on rents and square footage of the home, but I did say a commercial property that paid far below the value , it was more like 0.6% of market value on sale for $1 million.

I also read that the mls statistics aren't particularly accurate because realtors don't always report correctly and it just gives price per sf mostly rather than conditions of the home and other factors such as type of home, amenities, upgrades, etc is that true?
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Old 09-06-2009, 02:30 PM
 
7,742 posts, read 15,032,202 times
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Quote:
Originally Posted by tech2enable View Post
If a property owner isn't being their fair share, then someone else has to pay the bill right.

The Texas assessor doesn't know the true value of the property sometimes but I have read that people who live in similar looking homes in a subdivision can be hit hard since all the homes are identical pretty much and easier to assess.

I thought the property around lake travis, is that same as lost creek? are high though, do homeowners really get a break, I understand they might but I was referring more towards commercial property, I have no idea about industrial or

other properties although I note you can get further tax breaks by having livestock on your property which can be abused by wealthy homeowners with big lots and animals in contrast to traditional farmland owners.
Here are some examples:
Listing Price: $2,500,000
Annual Taxes: $12,453
Tax Year: 2009

Listing Price: $4,500,000
Annual Taxes: $20,000
Association Fee: $260

Listing Price: $1,500,000
Annual Taxes: $16,250

Listing Price: $1,250,000
Annual Taxes: $13,842


I would say most if not all of the lakefront properties are under assessed.
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Old 09-06-2009, 04:18 PM
 
Location: Greenville, Delaware
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I don't understand the contention of the OP. Texas residential property tax rates are nowhere near as astronomically high as in New Jersey (just one example). A reason that Delaware is being swamped by tax refugees from our northern neighbor. I certainly paid higher property taxes in Austin than I do in New Castle County, Delaware, but this state has very low property taxes (lower still in the other two counties) -- and no sales tax, plus an income tax that is only at about the national median level for state income taxes.
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Old 09-06-2009, 04:52 PM
 
656 posts, read 1,415,159 times
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Quote:
Originally Posted by doctorjef View Post
I don't understand the contention of the OP. Texas residential property tax rates are nowhere near as astronomically high as in New Jersey (just one example). A reason that Delaware is being swamped by tax refugees from our northern neighbor. I certainly paid higher property taxes in Austin than I do in New Castle County, Delaware, but this state has very low property taxes (lower still in the other two counties) -- and no sales tax, plus an income tax that is only at about the national median level for state income taxes.
Texas tax rates are higher than any other state, now homes may be cheaper due to multiple factors, and there is more to a home than square footage, there is also weather,views, money in the area, that's the market value of the home, extremely wealthy areas such as alpine and summit pay less tax rates , while certain middle income towns may much more, while poorer may be more or less (if subsidies are given), I used the median rate The Tax Foundation - Map: Property Taxes on Owner-Occupied Housing by State (people may be paying more or less in terms or rates)
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Old 09-06-2009, 05:02 PM
 
Location: Greenville, Delaware
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Well what matters at the end of the day is how much tax you have to pay in fact. And I can tell you that people even in modest homes in NJ are paying a helluva lot more than in TX. So maybe it's to do partly with the appraised value for tax purposes. I don't know. I just know that Texans aren't paying anywhere near as much as in some other states.
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