Property taxes - Why so high? (Houston, Austin: coop, school district, taxi)

[atxcio]

Originally Posted by WAtoTX

Washington state has no income tax, a lower sales tax rate and our property taxes are less than half that of Texas. On top of all of that we have no toll roads. What are the citizens of Texas getting for the higher property tax burden?

What's the sales tax rate in WA? Like, cities of Seattle or Bellevue or something? Are you sure it's lower than what we pay here?

Keep in mind that while the tax rates here are very high, the average home price is much lower. Places like Austin are on the high end home-price wise, but that's not the norm throughout the state. Many areas in the state are, quite frankly, dirt cheap. So actual $$$ collected per homeowner throughout the state may be much lower than WA even though the rate is higher. That money is mostly used to build & staff the tons of schools we need in this state for all the kids.

[WAtoTX]

Originally Posted by atxcio

What's the sales tax rate in WA? Like, cities of Seattle or Bellevue or something? Are you sure it's lower than what we pay here?

Keep in mind that while the tax rates here are very high, the average home price is much lower. Places like Austin are on the high end home-price wise, but that's not the norm throughout the state. Many areas in the state are, quite frankly, dirt cheap. So actual $$$ collected per homeowner throughout the state may be much lower even though the rate is high. That money is mostly used to build & staff the tons of schools we need in this state for all the kids.

The sales tax rate in Vancouver is < 8.25%.

[atxcio]

Originally Posted by WAtoTX

The sales tax rate in Vancouver is < 8.25%.

Sales tax rate in Sunset Valley (Austin, TX area) is less than Vancouver. It's 8.125%.

And 8.25% is the max sales tax rate in the entire state of TX. Even in the big cities. Did you find out yet what the rate is in Seattle?

[WAtoTX]

I believe the sales tax rate in Vancouver is actually less than 8% but we are splitting hairs at this point. The bottom line is that my overall tax burden in WA seems to be quite a bit less than it will be in Texas, which is surprising since I am coming from a very blue state.

[atxcio]

Originally Posted by WAtoTX

I believe the sales tax rate in Vancouver is actually less than 8% but we are splitting hairs at this point. The bottom line is that my overall tax burden in WA seems to be quite a bit less than it will be in Texas, which is surprising since I am coming from a very blue state.

Well, the truth is both WA and TX are low tax burden states. Everyone's individual experience may vary, based on city and other factors. No doubt if you had a $400K home in WA and turned around and bought a a $400K home in TX, you'd be paying much more in property taxes. So don't make that mistake!

Here is the info, just look up WA and TX:

The Tax Foundation - Tax Research Areas > State Tax and Spending Policy (http://www.taxfoundation.org/research/topic/9.html - broken link)

Washington is a very respectable 8.9% of income, the 35th highest in the nation.

Texas is slightly less at 8.4% of income, the 43rd highest in the nation.

[intmd8r]

Originally Posted by atxcio

Well, the truth is both WA and TX are low tax burden states. Everyone's individual experience may vary, based on city and other factors. No doubt if you had a $400K home in WA and turned around and bought a a $400K home in TX, you'd be paying much more in property taxes. So don't make that mistake!

I don't think you would need to spend $400k (or anywhere near it) to get the same house you had for $400k in Vancouver, would you? That's the thing. The rates are higher, but the overall tax burden is lower because you are paying so much less for the house (and the assessed value would also be less, making your tax basis less).

I know I got freaked out at the rates when I first saw them, too. But after doing some research about $$ (which is really what counts, yes?), I realized that it wasn't nearly as bad as I had initially feared. Are taxes high? Yes. But I also want to live in an area with great schools, etc. and in the end, the tax burden is low on residents in Texas.

[Austin97]

Originally Posted by atxcio

Well, the truth is both WA and TX are low tax burden states. Everyone's individual experience may vary, based on city and other factors. No doubt if you had a $400K home in WA and turned around and bought a a $400K home in TX, you'd be paying much more in property taxes. So don't make that mistake!

Here is the info, just look up WA and TX:

The Tax Foundation - Tax Research Areas > State Tax and Spending Policy (http://www.taxfoundation.org/research/topic/9.html - broken link)

Washington is a very respectable 8.9% of income, the 35th highest in the nation.

Texas is slightly less at 8.4% of income, the 43rd highest in the nation.

Texas is around $3580/capita washington is $4334.


So in straight dollars, washington collects 30% more in taxes per capita.

[orbius]

Originally Posted by hoffdano

Orbious - you say the same thing over and over. Yet you seem unable to give us an example of a cozy property tax deal. You claim rich landowners get money back! So local governments just give landowners money to put goats on the land?

And please tell us which corporation got free land.

Tax abatements - yes they happen. That is a legitimate topic for discussion. But Austin is just one of hundreds of areas competing for jobs.

Rich landowners - whoever they are - pay vastly more taxes proportionally than they receive. A rich household in Eanes pays $20K per year or more in property taxes - yet do they use four times as much county service as the household that pays $5K per year? No.

I don't think there should be tax loopholes BTW. Nor tax deductions (for homes, children, mortgages, etc.).

AG Exemptions look it up who gets them, how much they get off their property taxes. Its an obvious abused loophole, its meant to keep small farmers on their land, its not meant to be a loophole for the rich to build a mansion on this land run a few cows and avoid property tax. Come back when you research how this loophole is abused and apologize to me.

http://www.texaskaos.com/diary/3694/

[hoffdano]

Orbious - I cannot "look up" who gets Ag exemptions. Can you?

I do not agree with abuse of exemptions. If Exxonmobil is abusing the ag exemption then it should be remedied.

However your linked article doesn't have any data to show that the Ag exemption is widely abused by "rich people" nor does it say how much potential tax revenue is lost.

I contend that the typical "rich person" you detest is simply a successful person, who may own a multi-million dollar home (or more than one), and lives in an exclusive community. They have no special exemptions (there is certainly no agriculture to speak of in Westlake for example). And they pay a bunch of property tax.

The waterfront homes on Bella Riva Dr. in Costa Bella have appraised values ranging from $5.3M to $1.2M and nothing but the homestead exemption. I estimate the property taxes on that $5.3M home are almost $100,000 per year. That is a lot of taxes considering they use the fire department and Travis County services about as much as you (or I) do.

[TexasHorseLady]

Orbius, ag valuations are a LOT more complicated than you want to make them out to be with your biased attitude. (Says she who has one and who has had to defend it in the past couple of years and who HAS researched it thoroughly, including reading the pertinent statutes - have you done that kind of research or do you depend on biased sites to do it for you?) First, it takes five YEARS to get your ag in the first place (and you can't get your open space 1.d.1 until after you have your regular 1.d.1), during which time you're paying regular taxes, and if you (or someone who buys it from you on down the road) takes the land out of qualifying ag use, you pay five years' back taxes (what you would have paid if it had not been in ag, minus the taxes you did pay).

There's a WHOLE lot more, but I have to head out the door to Mama Roux and don't have time to go into it with you right now. But suffice it to say that potshots tend to hit the target a lot more accurately if the shooter has done the research first. I don't agree with abuse of ANY exemptions, but this is one that isn't as easy as you consistently make it out to be to abuse.