Question regarding property taxes... (Austin, Spring: for sale, real estate, how much)

[eichlerfan]

We are still waiting for the sale of our home, but we are seriously considering Highpointe in southwest Austin as we really like the area. However my husband is having a really hard time with the property taxes there that would be approximately 12,000 per year. We understand it's a newer development, but once established (however long that will be) does anyone know if taxes generally go down at all once an area is all developed?

Thanks in advance.

[usc619]

Not enough to make that big of a deal, you're looking at about 20yrs down the road. Welcome to Texas property taxes, now just bend over.

[TexasHorseLady]

You'll want to figure all the tax implications, not just Texas property taxes and state and local sales tax, but the lack of state income taxes, to see how where you're coming from really compares versus where you're coming to.

You'll have a homestead exemption for your homestead. There are other exemptions that you may or may not qualify for based on your personal circumstances.

Highpointe is in Hays County; here's the Hays County tax information (http://www.hayscad.com/PA/haysweb/taxrates.htm - broken link).

I looked in the MLS at the properties for sale today in Highpointe. The most expensive one on the MLS, at $575,000, did, indeed, have an estimated tax of $12,693. This broke down into:


North Hays County Esd #1 $107 0.025100
Hays County Esd #6 $279 0.065700
Hays County $1,594 0.374900
Hays County Munc Util Dist #5 $4,039 0.950000
Special Road Dist $341 0.080100
Dripping Springs Isd $6,334 1.490000

The figure at the end is the tax rate.

The estimated tax would be before the homestead exemption, though.

[Danbo1957]

Originally Posted by TexasHorseLady

...$575,000, did, indeed, have an estimated tax of $12,693.

That's a tax rate of 2.25%. The Texas average of 1.80% is the second highest state property tax rate in the country... brutal.

[TexasHorseLady]

What's the first?

[eichlerfan]

Originally Posted by TexasHorseLady

You'll want to figure all the tax implications, not just Texas property taxes and state and local sales tax, but the lack of state income taxes, to see how where you're coming from really compares versus where you're coming to.

You'll have a homestead exemption for your homestead. There are other exemptions that you may or may not qualify for based on your personal circumstances.

Highpointe is in Hays County; here's the Hays County tax information (http://www.hayscad.com/PA/haysweb/taxrates.htm - broken link).

I looked in the MLS at the properties for sale today in Highpointe. The most expensive one on the MLS, at $575,000, did, indeed, have an estimated tax of $12,693. This broke down into:


North Hays County Esd #1 $107 0.025100
Hays County Esd #6 $279 0.065700
Hays County $1,594 0.374900
Hays County Munc Util Dist #5 $4,039 0.950000
Special Road Dist $341 0.080100
Dripping Springs Isd $6,334 1.490000

The figure at the end is the tax rate.

The estimated tax would be before the homestead exemption, though.

What is a homestead exemption?

I did tell him we will save about 5,000 per year on state income tax, and so if we add that savings onto what we now pay for property taxes we will only be about 1,000. shy. He's just having a difficult time swallowing the 12,000 sticker price.

[atxcio]

Originally Posted by eichlerfan

What is a homestead exemption?

I did tell him we will save about 5,000 per year on state income tax, and so if we add that savings onto what we now pay for property taxes we will only be about 1,000. shy. He's just having a difficult time swallowing the 12,000 sticker price.

Homestead exemption is a discount of your appraised value by the taxing entity, as well as a limit as to how much higher they can appraise your property in a given year (10%). You can file for it for free, the form is available on all of the appraisal district sites (like hayscad.org). You must be living in the property on Jan 1st of the year you are applying for in order to qualify. After applying once, the exemption stays on until you cancel it or move away.

The easy part to understand is the 10% increase rule, as that is applied by the appraising entity (Hays CAD)... They can only increase your property value by a maximum of 10% each year. The other discounts, it's a bit more difficult. Each entity may give you a different discount in appraised value due to the homestead exemption. The Hays County ESD might give you $10000 off (your appraised value) and the Dripping Springs ISD might give you $15000 off (I think ISDs are mandated to give you that amount)... it's difficult to calculate exactly, but your best bet might be to look up the actual property tax bill for that address (or one in the same neighborhood) at the tax collector site: Hays County Tax Assessor/Collector > Home instead of the CAD.

Basically, the homestead exemption gives you some minimal relief in your estimated tax bill -- as well as the 10% increase protection.

[eichlerfan]

Originally Posted by atxcio

Homestead exemption is a discount of your appraised value by the taxing entity, as well as a limit as to how much higher they can appraise your property in a given year (10%). You can file for it for free, the form is available on all of the appraisal district sites (like hayscad.org). You must be living in the property on Jan 1st of the year you are applying for in order to qualify. After applying once, the exemption stays on until you cancel it or move away.

The easy part to understand is the 10% increase rule, as that is applied by the appraising entity (Hays CAD)... They can only increase your property value by a maximum of 10% each year. The other discounts, it's a bit more difficult. Each entity may give you a different discount in appraised value due to the homestead exemption. The Hays County ESD might give you $10000 off (your appraised value) and the Dripping Springs ISD might give you $15000 off (I think ISDs are mandated to give you that amount)... it's difficult to calculate exactly, but your best bet might be to look up the actual property tax bill for that address (or one in the same neighborhood) at the tax collector site: Hays County Tax Assessor/Collector > Home instead of the CAD.

Basically, the homestead exemption gives you some minimal relief in your estimated tax bill -- as well as the 10% increase protection.

Thanks for the explanation. Still somewhat confusing, but I'm sure we will figure it out.

[stillkit]

If you or your husband are a 100% disabled Veteran, as determined by the VA, you would now qualify for a total exemption from all property taxes, beginning on Jan 1 of this year.

There is also an exemption of a portion of your taxes if you are disabled under the Social Security rules. It is not a total exemption, but a reduction in the taxable value of your house for certain taxing entities. For instance, it freezes your school taxes right where they are (the largest portion of your tax liability) unless you make changes to the house, and it lets you string out the payments in four equal installments, rather than a lump sum in January of every year.

[achtungpv]

Bet on the taxes going up pretty much every year. They will rarely ever drop your appraised value outside of matching your purchase price the first year. For example, in the past year when real estate obviously tanked and little in our area sold, our appraised value still went up $700. A tiny amount but it just goes to show that the appraisal district will try keep appraisals from dropping to appease the taxing entities.