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Old 04-28-2012, 12:01 AM
 
Location: Austin, TX
172 posts, read 410,219 times
Reputation: 50

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Hey all!

My husband and I built a home last year in a planned community and our taxes were being withheld to our escrow account at the estimated value of the house. For 2011, the tax assessment was low becaues it was assessed before we started building. As a result, I got a big refund in the mail today becaues the amounts I was paying in was much higher than the monthly "assessed" value of the land. Did this happen to anyone? Did they ever come back at some future date to tell you you owed some back? Just trying to see if I can spend it or I should squirrel it away!

Thanks
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Old 04-28-2012, 07:50 AM
 
2,633 posts, read 6,399,723 times
Reputation: 2887
That's very common with new builds. You were paying in to your escrow account based on the purchase price of the home, but the county was only taxing based on the unimproved land. 2012 will be a different story, of course, and you'll likely end up a little short in your escrow account at some point in the next two years (your bank wil assume future year's taxes will beike this year's, until thy get the bill, which will leave your "buffer" short) and will have to pay that.

Basically, figure about 20% of that money will need to go back into your escrow account to provide the 3 months of "buffer" they require. Everything after that is yours to spend or save!
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