Here's another one...PROPERTY TAXES (Spring, Katy: sales, mortgage, credit card)

[rubynicholson77056]

My husband and I closed on our first home back in July. We were required to pay 10 months worth of property taxes which equated to about $4800 after the builder paid his portion. Even though the "real taxes" haven't been assessed, my lender estimated what our taxes would be based on approved value (about $6012) and set that amount for our escrow. (Yes we did escrow...it was a lender requirement...but we did get a 3.8% interest rate) With that being said I have two questions:

1) We received our utility tax bill and it is about $500. We paid in about $1930 of that $4800 towards utility taxes at closing. Will this be refunded to us or will it stay in escrow. We haven't received the bills for School taxes (Katy ISD) or County taxes but I'm guessing we over paid those as well.

2) I've heard stories about escrow amounts increasing and I want to be prepared. Does anyone know what the average increase is? I know it's based on tax rates, but how frequently do they increase and by what percentage? I received an email from Katy ISD stating they would not be increasing taxes this school year.

Sorry so lengthy...but thanks for your responses.

[Poltracker]

Be careful. The tax bill is NOT the same as the assessment. It is based on the assessment. Assessments are generally made before May so that you have a chance to protest them. If you bought new construction and did not close until July, it is entirely possible that the current tax bill is for the lot only and does NOT include the assessment for the structure. The tax system will definitely catch up with you next year and you might just get hit for that $1900 then. Read your tax bill carefully and check HCAD (or applicable county agency) online and see exactly what your taxes this year are covering. This will help you make future decisions when talking to your finance company or tax folks about the issue.

[rubynicholson77056]

Originally Posted by Poltracker

Be careful. The tax bill is NOT the same as the assessment. It is based on the assessment. Assessments are generally made before May so that you have a chance to protest them. If you bought new construction and did not close until July, it is entirely possible that the current tax bill is for the lot only and does NOT include the assessment for the structure. The tax system will definitely catch up with you next year and you might just get hit for that $1900 then. Read your tax bill carefully and check HCAD (or applicable county agency) online and see exactly what your taxes this year are covering. This will help you make future decisions when talking to your finance company or tax folks about the issue.

Thanks Poltracker. This I know. I know the tax bill is for the lot only. When the lender required 10 months worth of escrow, it was based on comparables within the neighborhood...about $501 a month, $6012 a year. Soooo we paid in 10 months plus we've been escrowing $501 since September ($7014 total).

So you're saying that next years tax bill will reflect the "improved" value, right? Which I'm guessing we should be prepared for since we are already escrowing taxes based on a estimate of what the taxes would be on an improved value. Correct me if I'm wrong.

[piyf]

God 500/month in property taxes. I hope you have a very nice home in a very nice area that's worth 300k. God I hate property taxes in Texas.

[piyf]

Originally Posted by rubynicholson77056

Thanks Poltracker. This I know. I know the tax bill is for the lot only. When the lender required 10 months worth of escrow, it was based on comparables within the neighborhood...about $501 a month, $6012 a year. Soooo we paid in 10 months plus we've been escrowing $501 since September ($7014 total).

So you're saying that next years tax bill will reflect the "improved" value, right? Which I'm guessing we should be prepared for since we are already escrowing taxes based on a estimate of what the taxes would be on an improved value. Correct me if I'm wrong.

At 7k I hope that's based on land and structure. If not you better be sitting down when you get your mortgage letter about next years taxes.

[rubynicholson77056]

Originally Posted by danieloneil01

at 7k i hope that's based on land and structure. If not you better be sitting down when you get your mortgage letter about next years taxes.

Lmao! I know right!

[EasilyAmused]

Originally Posted by danieloneil01

At 7k I hope that's based on land and structure. If not you better be sitting down when you get your mortgage letter about next years taxes.

[Thaskateguy]

School taxes also get me going. Both of My Sons went to private Schools, yet I have been paying School Taxes for more than 20 years. Way before they were ever born. Makes no sense to me.

[fordlover]

Well, Texas could drop the property tax rate, and start taxing our income at the state level, and also put a sales tax on food. How's that sound? One way or another, the state has to generate sufficent income, and Texas does it through property taxes, I don't like it anymore than the next guy, but I love the fact that we have no state income tax.

Thankfully land tax apprasal value is typcially well under it's marketable value. For instance a building lot in Spring near the woodlands may be taxed at a 12,000 dollar value, but recently sold on the market for 45,000.

[Thaskateguy]

Or, they could learn to spend only what we give them. We live within budgets, so should our Government. Our Govenments often act like a teen aged Kid at the mall, with Moms credit card. "Don't buy, what you can't pay for." How simple is that.