HCAD appraisal values out for most people (Katy, Mart: homes, buy)

[diggity101]

Originally Posted by houston-nomad

This makes sense, thanks. But-- let's say I protest, and get my Market Value reduced. But it's still higher than my Appraised Value, so there's no immediate benefit. Then next year, HCAD just bumps my Market Value back up to what it was, or higher. How do my efforts ever pay off? Right now my Market Value is about 100K higher than my Appraised Value... is there any point in putting the time into a protest, if HCAD can keep bumping it back up every year?

They very well may raise it back next year, but in my experience HCAD uses years like this to "catch up" on trailing values. I would imagine after nailing people so hard this year, they won't adjust much in the next couple.

To me, it's always worth fighting.

[btj23]

Originally Posted by astrohip

I'm pretty sure this is not correct. The market value is what HCAD thinks it's worth. Appraised value is what it's on the tax rolls for. Exemptions are done at the tax bill level. HCAD merely outputs a taxable value (appraised value) to the taxing districts. Those taxing districts then create a tax bill based on tax rates and exemptions. HCAD doesn't care about exemptions at the appraisal level.

Normally Market Value and Appraised Value are the same. However, we have the 10% annual cap on appraised value increase. So let's say your Market & Appraised are both 250,000. The next year HCAD decides the Market is 350,000. They can only raise the Appraised to 275,000 (250,000x10%). So now you have a Market & Appraised that are different. If the following year your Market stays the same (350,000), they would raise the Appraised another 10%, 275,000 up to 302,500. Your Appraised keeps going up 10% until it catches up with Market.

Correct. I spoke in layman's terms, just a way for someone to understand what the values stand for. And behind the scenes there is an Assessed value.

[astrohip]

Originally Posted by houston-nomad

This makes sense, thanks. But-- let's say I protest, and get my Market Value reduced. But it's still higher than my Appraised Value, so there's no immediate benefit. Then next year, HCAD just bumps my Market Value back up to what it was, or higher. How do my efforts ever pay off? Right now my Market Value is about 100K higher than my Appraised Value... is there any point in putting the time into a protest, if HCAD can keep bumping it back up every year?

You are correct. And hopefully so is diggity.

I have had HCAD skyrocket a commercial property of mine 75% one year. They wouldn't budge, so I took them to court. They settled on the day of the hearing, for the previous year's value. The next year, they just did it again. I am waiting for a court date for this year's suit.

[jwtomt2day]

I am super confused and hope ya'll can help. We closed in May of 2012. We immediately protested and got the value as of Jan 1, 2012 down to purchase price (145K).

We had to protest again to get the value as if Jan 1, 2013 down to 151K

This year they are saying that the market value is 199K and the appraised value is 166K. WTF?

There is absolutely no way in hell that the house is worth a dollar more than 170K even if a fool bought it.

Are they suggesting we pay taxes on the 166K or the 199K?

Should we protest again? Where are they getting such crazy numbers from?

[PedroMartinez]

Originally Posted by astrohip

I meant to add... when you protest, you are protesting your Market Value. You can't protest your Appraised Value, as it is subject to the 10% cap rule, and isn't a real value. It's just a tax number. One protests the Market Value, as that is what HCAD really sets.

It's possible, if you had a huge increase in Market Value, that you could protest, win a significant reduction, but still have that reduced value be above 10%, in which case you haven't actually lowered your TAX BILL for the current year.

It may help for future years though.

Either I'm not understanding you correct, or something isn't quite right in your statement.

You are taxed on your appraised value, not your market value; therefore, if you are not protesting and changing your appraisal value, there is no point and your taxes will always be what they say they are.

Since the appraisal is capped at 10%, they can't raise the appraised value to what they feel your home is worth; therefore, they show you both what they feel your house is worth and what your appraisal, or "tax value", is.

[PedroMartinez]

Originally Posted by jwtomt2day

I am super confused and hope ya'll can help. We closed in May of 2012. We immediately protested and got the value as of Jan 1, 2012 down to purchase price (145K).

We had to protest again to get the value as if Jan 1, 2013 down to 151K

This year they are saying that the market value is 199K and the appraised value is 166K. WTF?

There is absolutely no way in hell that the house is worth a dollar more than 170K even if a fool bought it.

Are they suggesting we pay taxes on the 166K or the 199K?

Should we protest again? Where are they getting such crazy numbers from?

If the appraisal value stands, you are taxed based upon $166k.

They are essentially saying your home is worth $199k, but due to the 10% cap, they can only take you to $166k.

You could be paying taxes on $166k for the next 5 years, and then when you go to sell, the markets has come down, and your home is only worth $130. Do you think they are going to rebate you taxes on a "profit" that you never realized? Nope. They are just going to take your money even though you never realized any financial gain.

This is one of the reasons I feel we need to switch from property taxes (aka you rent your home from the government and never actually own it) to a sales tax based system.

[btj23]

You're protesting your market value, and the goal is to get that as low as you can. If you get it below the appraised value, you save cash-money this year. If you don't, then at least you've reduced the market value. Eventually, the market value will go to sleep for a bit, and the appraised value will catch up to it. If you can keep the market value as low as possible, then there will be years when nothing really increases as far as either value. This happens when they equalize, so the lower the market value, the quicker the values can equalize.

Did you follow that?

[PedroMartinez]

My next door neighbor has a newer, nicer and larger home than I have (800 sq feet more). He has a pool (I'm building one now though), professional landscaping, boat lift and a boat house. Every year, his market and appraisal value remain the exact same, and every year they try to raise my market above his and increase my appraisal by 10%. Right now, they claim the market value on his home is $25k more than mine. I don't have the attached two car portecache (sp?), mosquito misting system, professional outdoor lighting, outdoor kitchen with pergola or the other things listed above, but somehow, in HCAD imagination land, I'm just super overdue for an increase regardless of any factors.

[EasilyAmused]

Originally Posted by astrohip

You are correct. And hopefully so is diggity.

I have had HCAD skyrocket a commercial property of mine 75% one year. They wouldn't budge, so I took them to court. They settled on the day of the hearing, for the previous year's value. The next year, they just did it again. I am waiting for a court date for this year's suit.

Astro, we've gone through this too for commercial property. I think they try to "break you" with your own lawyers fees. Dirty Pool.

[Bike4Life]

Originally Posted by marksmu

I have my real estate license, and while in my HAR orientation they asked everyone what their background was....One of the people in the room works for the appraisal district and was signed up as a non-realtor member. The appraisal district does have access to the MLS sold data.

Ah, so HCAD is a paying member to HAR for information purpose. Why were you making it sound like some hood-wink money grubbing scandal? You made it sound like HCAD secretly bought out HAR for the sole purpose of this exploitation.