Confused about what is included in property taxes (Houston, Austin: HOA fees, house) - Texas (TX) - City-Data Forum

javaj · 02-08-2007, 03:28 PM

We are probably moving to Houston later this year for my husband's job. Right now, we are considering areas in The Woodlands and Spring. This could change depending on where I will be working.

Anyway, I'm trying to understand exactly what is included in the property tax rate. When people say property tax rates average 3 to 4%, does that include everything that is paid as a percentage of the home's assessed value? Do those include MUD taxes? I've also heard of others mention school taxes -- are those separate? How about HOA?

Thanks!

Vicman · 02-08-2007, 04:04 PM

Quote:

Originally Posted by javaj

We are probably moving to Houston later this year for my husband's job. Right now, we are considering areas in The Woodlands and Spring. This could change depending on where I will be working.

Anyway, I'm trying to understand exactly what is included in the property tax rate. When people say property tax rates average 3 to 4%, does that include everything that is paid as a percentage of the home's assessed value? Do those include MUD taxes? I've also heard of others mention school taxes -- are those separate? How about HOA?

Thanks!

Yeah, school taxes are separate. In Texas, all but one of the school districts are independent from municipalities and counties. They answer to the Texas Education Agency.

javaj · 02-08-2007, 04:09 PM

Quote:

Originally Posted by Vicman

Yeah, school taxes are separate. In Texas, all but one of the school districts are independent from municipalities and counties. They answer to the Texas Education Agency.

Thanks for that quick response. How do I find estimates of school taxes?

Just trying to be as prepared as possible since this'll be a huge change for us. Here in Colorado Springs, our property taxes include school taxes, and it is about 0.8%!

Vicman · 02-08-2007, 04:11 PM

Quote:

Originally Posted by javaj

Thanks for that quick response. How do I find estimates of school taxes?

Just trying to be as prepared as possible since this'll be a huge change for us. Here in Colorado Springs, our property taxes include school taxes, and it is about 0.8%!

Figure out the school district assigned to your house and call that district.

AustinTraveler · 02-08-2007, 04:27 PM

I don't know if it's different here in Austin, but our total tax bill includes school tax. We pay close to 3%.

momof2dfw · 02-08-2007, 04:45 PM

Your total tax bill DOES include school taxes. Each entitiy taxes you seperately but it is all based on the market value that the county comes up with. MUD taxes are not everywhere. They are only in areas where the developer set them up so you can avoid that, big controversy in Texas over MUD taxes for those few that have them. If you have found a property you are interested in you should be able to go online to the county tax appraisal website and look it up and the history and see exactly what their taxes are every year. HOA fees are seperate than property taxes. The normal property taxes will include: county, city, local school district and then possibly county hospital and county community college district.

momof2dfw · 02-08-2007, 04:49 PM

For Harris County go to www.hcad.org

From their website is this info:

The property tax is the primary source of local government revenue in Texas, and it is important for property owners to understand how the process operates.

1. The appraisal process. An appraisal district in each county determines the January 1 market value of all taxable property, and the property is appraised at that value unless it is a residence homestead subject to a cap. Capped homesteads are limited to increases in appraised value of 10% each year. Once a property’s appraised and market values are equal, further increases (or decreases) in value will depend on the market in that neighborhood. In both 2004 and 2005, the market value of over 360,000 residences in Harris County didn’t change from their value in the prior year. The appraisal process allocates the tax burden to ensure that no one property pays more or less than its fair share.

2. The tax rate. The governing bodies of the various local government jurisdictions (county, school districts, cities, municipal utility districts, college districts, hospital districts, etc.) set an annual tax rate which, when applied to the total appraised value of all taxable property within that unit, generates the amount of money needed to fund that governmental unit’s operations for the year.

javaj · 02-09-2007, 10:27 AM

Oh, so 3% to 4% does include school taxes then? That's what it sounds like from the website mentioned. That's a relief! Still a huge difference with what we're paying now but it makes it slightly less of a shock

HonieB · 02-09-2007, 10:59 AM

Momof2 mentioned the Harris County website, but if you're considering home in The Woodlands most likely you'll be part of Montgomery County. A very new section of the Woodlands will have its schools zoned for the Tomball isd, but I don't know if that means it will be part of another county.

jessnboys · 02-09-2007, 05:16 PM

What is currently The Woodlands is in Conroe ISD and Montgomery County. The new section of The Woodlands, Creekside Park, is in Tomball ISD and Harris County. Harris is more expensive than Montgomery.

Also, all of the literature we received from The Woodlands Homefinder Center which outlines the tax information for each village in The Woodlands also included the HOA fees in the total tax percentage. Hope that helps.