Austin property taxes jump 38% over past decade (Kyle: house, neighborhood)

[Biscuits]

Kudos to the Satesman. This topic is finally getting a fraction of the press that it deserves.

Austin property taxes jump 38% over past decade

Local entities join forces to sync myriad bond, tax proposals
Average homeowner would see $1,000 increase in taxes in next 5 years under some scenarios

The same average Austinite that blindly votes "yes" on every tax increase and bond election is not-so-slowly getting taxed out of their home. I'd like to ask, is new athletic equipment for AISD or a boardwalk for Town Lake -- or practically anything else for that matter -- worth supporting if you are then forced to move to Kyle due to your inability to grow your income at the same rate of your increasing property taxes? Will Austin one day become a place that only those in the upper-middle class and above can reside in?

[Trainwreck20]

It appears that they corrected for inflation, but did not adjust based on home value. A significant portion of that 38% increase on the 'typical' house is due to the fact that the 'typical' house has gotten more expensive - i.e., no just due to the tax rate increase. Although that is still an increase in taxes, it is accompanied by an increase in value in your home. It is a bit of sensationalism to (I assume) intentionally fail to mention that change in value of the typical home and not just list the tax rate 10 years ago and the tax rate now.

[Biscuits]

Originally Posted by Trainwreck20

It appears that they corrected for inflation, but did not adjust based on home value. A significant portion of that 38% increase on the 'typical' house is due to the fact that the 'typical' house has gotten more expensive - i.e., no just due to the tax rate increase. Although that is still an increase in taxes, it is accompanied by an increase in value in your home. It is a bit of sensationalism to (I assume) intentionally fail to mention that change in value of the typical home and not just list the tax rate 10 years ago and the tax rate now.

In theory, shouldn't the tax rate go down when the overall value of the appraisal roll goes up? If that is the case, how is the 38% increase explained?

[Trainwreck20]

In theory, shouldn't the tax rate go down when the overall value of the appraisal roll goes up?

Not sure what theory that is, but when was the last time your income tax went down because your (or overall) income went up? There has always reports touting when earnings increase greater than inflation - with your theory, tax rates should have dropped then.

Our home was valued in 2010 very closely to what it was in 2000 (with some ups and downs in between). Our taxes in 2010 were very close to what they were in 2000, although I would have to dig through the records to see exactly what they were, but I am guessing we are paying less after looking at inflation in 2010 than we were in 2000. A lot of that has to do with the recession and decrease in property values, but it is at least as accurate look at my tax situation as the paper is making of the overall tax situation. I am not disagreeing that the article is not accurate in saying that taxes have gone up, maybe disproportionately, but the statistics are very skewed in their presentation. If people are going to get hot and heavy over the tax increases, it is good to look at the whole picture, not just sound bites that make it look a certain way.

[Biscuits]

Originally Posted by Trainwreck20

Not sure what theory that is, but when was the last time your income tax went down because your (or overall) income went up?

Huh? What does income tax have to do with this discussion? Are you trying to say that if the value of the Travis County tax roll doubles that the taxing authorities in Travis County are entitled to double the tax revenue?

Here is the "theory" I was referring to:

Texas Property Taxes: Taxpayers' Rights, Remedies, Responsibilities

The effective tax rate would provide the taxing unit with approximately the same amount of revenue it had the year before on properties taxed in both years. For example, if property values go up, the effective tax rate goes down. Comparing property tax revenues from one year to the next year tells you whether there will be a tax increase.

[Parksider]

Why do people need to move to Kyle? We live within the city limits and our assessment has dropped 25% in the last 5 years. The neighborhood is still as nice as it's ever been. Maybe my experience is different from most.

[Biscuits]

Originally Posted by Parksider

Why do people need to move to Kyle? We live within the city limits and our assessment has dropped 25% in the last 5 years. The neighborhood is still as nice as it's ever been. Maybe my experience is different from most.

Some people might need to move to places like Kyle because it is more affordable than Austin.

[Parksider]

The suburban areas within Austin are as expensive as the outlying commuter towns. If you stay within the city limits of Austin, you can still get a new (5-10 year old) house for under $100/sf, and in a nice area still. New build has gotten pricey, I admit.

[Trainwreck20]

Here is the "theory" I was referring to:

But the appraised value on an individual house does not necessarily reflect the total tax base, either. Just because the family in the side bar saw an $8,000 increase does not mean that other people did not see a decrease. I suspect our taxes (correct for inflation) decreased from 2000 to 2010.

I guess the real question (to me) is did the property tax income (city-wide) increase by 38% when corrected for inflation? m All the numbers here are based on a per house or typical house basis, not directly to the total taxes brought in.

[hoffdano]

Originally Posted by Trainwreck20

Not sure what theory that is, but when was the last time your income tax went down because your (or overall) income went up? There has always reports touting when earnings increase greater than inflation - with your theory, tax rates should have dropped then.

Our home was valued in 2010 very closely to what it was in 2000 (with some ups and downs in between). Our taxes in 2010 were very close to what they were in 2000, although I would have to dig through the records to see exactly what they were, but I am guessing we are paying less after looking at inflation in 2010 than we were in 2000. A lot of that has to do with the recession and decrease in property values, but it is at least as accurate look at my tax situation as the paper is making of the overall tax situation. I am not disagreeing that the article is not accurate in saying that taxes have gone up, maybe disproportionately, but the statistics are very skewed in their presentation. If people are going to get hot and heavy over the tax increases, it is good to look at the whole picture, not just sound bites that make it look a certain way.

The focus SHOULD be on taxes paid. It should not need correction for property values. If the property in Travis county is worth $1 trillion (I just picked a number) in 2000, and worth $1.25 trillion in 2010, the only reason property taxes should go up in total is because the government(s) and schools needed more money to operate. We know population has increased over that decade. More police, more fire dept, more road maintenance, and of course more students in schools over that time.

I think it is reasonable that property tax collections increase over a ten year period in an area with population growth. But the per capita property tax shouldn't grow at the same rate if new taxable properties have been built.