Property Tax Question 2022 (Houston, Stafford: rental, school, college)

[illidanx]

Originally Posted by WRM20

Appraised. Which may be lower than market for the reasons I explained previously.

Second this. That is the whole purpose of having appraised value.

[crone]

Originally Posted by Raider Scott

Since we are going to retire in about 7 years, the wife and I have been researching states to retire in.


The sad thing is that we are both native Texans and do not want to leave, but we will be on a semi-fixed income at retirement and might not be able to fight off the taxes for too many years of our retirement.


What we have found is that in many states, paying their small state income tax and their lower property taxes is STILL way less than staying in Texas and paying TX property taxes. Some states discount the taxed values of homes, after you turn 65. Some states also do not tax retirement income and have way less property tax rates AND lower housing costs.


Do your own research....Texas is NOT some sort of tax haven just because we have no state income tax. Also, I know our property taxes are frozen at age 65.....BUT...until that day, it is pedal to the metal with these greedy county appraisal districts and many of us will not be able to pay the sky high tax rate when it is finally frozen at age 65.


Texas is a great place to live...IF you have a good steady income. Retired with not a lot to spare...not really a good place for you.

Unless you have some acreage you can let your neighbor run some cows on.. A friend lives near Round Top. His house is very much like ours, number of rooms, square footage, etc. And they paid exactly what we paid. His taxes are 1/4 what ours are because he has 20 acres loaned to a neighbor. It agricultural land. SMH

[WRM20]

Originally Posted by crone

Unless you have some acreage you can let your neighbor run some cows on.. A friend lives near Round Top. His house is very much like ours, number of rooms, square footage, etc. And they paid exactly what we paid. His taxes are 1/4 what ours are because he has 20 acres loaned to a neighbor. It agricultural land. SMH

The problem with ag land is that if it ever loses the exemption, there's a clawback of 5 years of taxes without the exemption. Your neighbor's deal sounds a little hinky too. Loaning land to someone doesn't necessarily make it ag land. And, his house should be taxed at the same value as your house, at least. There should be a carve out from the ag land for the homestead portion. You could innocently ask the appraisal district why his value is so much lower when his house is the same as yours, or bigger.

[crone]

Originally Posted by WRM20

The problem with ag land is that if it ever loses the exemption, there's a clawback of 5 years of taxes without the exemption. Your neighbor's deal sounds a little hinky too. Loaning land to someone doesn't necessarily make it ag land. And, his house should be taxed at the same value as your house, at least. There should be a carve out from the ag land for the homestead portion. You could innocently ask the appraisal district why his value is so much lower when his house is the same as yours, or bigger.

Different appraisal district.

Texas appraisals are kinky. That land in Dallas adjacent to the freeway and just a block from North Park mall was
agricultural for the many years I lived there. It did have some cows on it.

When DH was on the ACC of our HOA he would write letters to owners that made it sound as if their home was a tear down for the homeowner to take to their ARB meeting. It always worked.

Then he was curious about appraisals so he got a job on the ARB. One of those big companies whose name always is suggested had some employees who were never prepared. They didn't get as much reduction as the homeowner would have.

[astrohip]

Originally Posted by WRM20

Your neighbor's deal sounds a little hinky too. Loaning land to someone doesn't necessarily make it ag land. And, his house should be taxed at the same value as your house, at least. There should be a carve out from the ag land for the homestead portion.

If the land is used for ag purposes, it qualifies. It doesn't matter if YOU use it, or if you loan it to a neighbor. It's the LAND that qualifies, not the owner.

Local AD are supposed to look at the entire property. Houses, improvements (barns, etc), and land not used for ag purposes... all of that should be appraised at proper values, and taxed accordingly. Only land used for ag purposes (or a similar exemption, such as wildlife) is appraised at a reduced value.

[Dopo]

And this is one of the way city people get screwed while country folks get government benefits


https://beeweaver.com/blog/beekeepin...tion-in-texas/

STATE LAW CHANGED IN 2012:
Texas Tax Code: Chapter 23, Subchapter D. Appraisal of Agricultural Land Sec. 23.51 – (2) “Agricultural use” includes but is not limited to the following activities: ….”The term also includes the use of land to raise or keep bees for pollination or for the production of human food or other tangible products having a commercial value, provided that the land used is not less than 5 or more than 20 acres.”

HOW MUCH WILL I SAVE?
The Ag valuation savings number is different for everyone depending on what county you are in and how many acres you have and your land values, of course. BUT, if you have HIGH property taxes now, you will likely be VERY pleased with the new valuation. Counties we have worked with seem to be using “orchard values” on the property once it goes into AG, which means thousands of dollars in tax savings for you. For instance, I have seen properties in Travis County go from a regular tax value of $40,000-$70,000 per acre down to an AG value of $2,000 per acre!!! Would you rather pay property tax on $40,000 or on $2,000? EXACTLY!

[astrohip]

Originally Posted by Dopo

And this is one of the way city people get screwed while country folks get government benefits

I think it's more nuanced than simply "city folk get screwed". And I say this as someone who pays sky-high property taxes here in Houston.

First, any improvements ARE taxed in full. So even if you have a hundred acres taxed at almost nothing, you will stay pay full taxes on that Hill Country McMansion that sits on it. Full. Taxes.

Agricultural landowners will have their property's taxes calculated based on productive agricultural value, as opposed to market value of the land. This is based on wording in the Texas Constitution.

Part of the reasoning is without some sort of ag-exempt, raw land becomes too expensive to use for ag use. You have twenty acres, and raise cattle. It doesn't make much money, maybe breaks even. But city folk are paying $20,000/acre for land in your area. If it was valued at $400,000, the taxes alone would bankrupt you. So to keep land rural, ag-exempt laws were passed. But if you build that fancy house, you will pay taxes on that. Also remember that homestead laws and appraisal caps are often limited when it comes to raw land, so it doesn't have the same protections our city homes have.

Without some sort of protection, rural land becomes too expensive to own as rural land. Do we really want all our land to turn urban? No place to raise cattle, grow hay and cotton, etc? There's a reason all fifty states have some sort of "market value vs ag value" law. Otherwise beef and bread and clothes would cost twice what they cost.

Another thing to remember is if you aren't using it for productive ag use, you pay full taxes. Lots of people fall in that category.

[Dopo]

Originally Posted by astrohip

Without some sort of protection, rural land becomes too expensive to own as rural land. Do we really want all our land to turn urban? No place to raise cattle, grow hay and cotton, etc? There's a reason all fifty states have some sort of "market value vs ag value" law. Otherwise beef and bread and clothes would cost twice what they cost.

What happened to "Let the market decide", "Get the government out of lives", etc.
Now you are telling me that those people are completely dependent on government subsidizing them.

[WRM20]

Originally Posted by Dopo

What happened to "Let the market decide", "Get the government out of lives", etc.
Now you are telling me that those people are completely dependent on government subsidizing them.

It's OK when THEY are being subsidized. It's not OK when YOU are being subsidized.

[crone]

Originally Posted by Dopo

What happened to "Let the market decide", "Get the government out of lives", etc.
Now you are telling me that those people are completely dependent on government subsidizing them.

Don't forget that city people paid a tax on their phones that enabled running phone lines into rural areas for years. Now we are expected to provide them with more for internet service. IIRC, that's where the money for Obama phones comes from.