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The county tax appraiser CAN NOT come in just willy nilly and put a higher price on my property because someone several miles away sold for twice the price of mine.
The assessors office, not appraisers, actually do this on a regular basis, and it's legal.
At assessment time (in colorado they can assess properties every 2nd year; in the "in between" years they raise the taxes based on the past year's assessment) they look at the real estate comps (and maybe other data) then assess all the neighborhood's properties to reflect the most recent average sales prices. The size of the "neighborhood" depends on where the homes are placed and the sizes of properties, so yes in a subdivision of postage-stamp homes, they probably will all assess at similar values. But for those of us who don't live like sardines, it does happen that a less-valuable home can be assessed for more than its actual worth if neighboring properties are selling for double and triple what they were bought for.
- Yes, a run-down shack will be assessed for more than it was purchased for if nicer homes around it sell for more. You could buy a shack for $10k, own it for 20 years with no improvements, and have the assessed value (not appraised value, those are different) increase by huge amounts if it has nicer homes in the area that have been bought and sold around it in that 20 years. The assessed value of the property is based more on the value of the surrounding area, not on the actual appraised value (the value that comes up when a real person comes looking and measuring.)
Consider a farmstead out in a rural area. The farm is assessed for a certain value. Land prices skyrocket, the farmer sells half the farmland to a developer who then plants houses. The farmer stays in her house for 20 years while the subdivision grows and other subdivisions grow up around that.
The assessed value of the farmer's original (now old and run-down) house will increase dramatically over that 20 years due to the new houses being bought and sold in the now-surrounding subdivisions. Every time a house is sold, it can be reassessed at a newer (always higher) value. So the farmer's property taxes will skyrocket over that 20 years because the overall neighborhood is rising in "value" (nobody sells their house for less than they paid for it, right?)
So the farmer retires, expecting to stay on her property for the rest of her life. But with only Social Security for income, how is she going to pay her property taxes? The house was paid off years ago, but the taxes keep going up and up and up from those darned neighboring subdivisions. She has to sell out and move to an apartment in town because she hasn't enough income to pay $10k per year in taxes.
This is just a story to illustrate the problem. But I've done the math based on my own property. Due to the changes in our area, my taxes have gone from $250 the first year I owned it, $450 the 2nd year, $680 the 3rd year, and I'm now waiting for the new tax bill. Based on this rate of increase, my taxes in 20 years (without adding any improvements to the property, mind you) will be over $100,000 per year. And this is legal robbery by the assessor's office. They are allowed to do this.
I have made no external improvements to the property in these 3 years. It's a 29 year old mobile home which automatically depreciates in value each year, like an old car. I haven't even painted it. The increases are due only to the fact that neighboring properties have sold for outrageous amounts these past few years so all those left behind are getting stuck with ever-increasing tax bills. The property next to mine sold 1 and 1/2 years ago for $350,000. The current assessed value is $600,000! And they have made no improvements either. What made it double in assessed value in less than 2 years? Other sales in the neighborhood.
Perhaps people in subdivisions are not seeing this legalized robbery as much as someone who lives in a rural area for years because most neighboring houses are so much alike. But it's there and happening. Just because it isn't happening to you, doesn't mean it's OK to let it continue.
OK, I'm off the soapbox again :-) I just want people to NOT be complacent about property taxes and to NOT be thinking it's simply a benign way to collect money to run the government. It hurts real people.
I'm not complacent at all on property taxes. I've protested mine every year for the last 5. I also have property that is rural and out of the city limits and they add to the "improvement" value everytime we pave ANYTHING (even a small 2'x3' for grill to set on) or put on a new roof. I also have some rural property in Colorado. Wanna buy it? It was inherited. My grandparents bought it MANY, MANY years ago for nothing. I think it is still worth "nothing" . The taxes on it are $100 a year. Whoopee. Now if they ever start to develop around there and they did a few years ago but nothin. Nada. Not a thing. Still have it. A piece of dirt, literally dirt, in Colorado not even IN the mountains and it is West of Colorado Springs.
Then I have business property taxes we have to pay........ most people REALLY do not understand these at all. It's sad enough the number of people that don't understand their own personal property taxes and they keep saying to tax the businesses more and they have no clue what even goes on w/ the business taxes. LOL!
I like you - I'd like to have lots of neighbors like you! :-)
Please PM me about your property in CO - you never know, I may know someone interested. Not me - I want to live in Texas! You guys have a long-standing reputation for not taking a lot of crap off of others :-)
I recently read there is a group trying to separate the Texas government from the US government. Probably not practical, but I applaud their guts to try. removed
I like you - I'd like to have lots of neighbors like you! :-)
Please PM me about your property in CO - you never know, I may know someone interested. Not me - I want to live in Texas! You guys have a long-standing reputation for not taking a lot of crap off of others :-)
I recently read there is a group trying to separate the Texas government from the US government. Probably not practical, but I applaud their guts to try.
LOL! I personally think I'm demented for even wanting to go visit those nice people down at the county tax office. Went three times this year. The first guy was a lil green behind the ears. The second one was a supervisor that thought that he could bs about other stuff (kids and all) and get away w/ it. Guess like my mama always said, "third times a charm".
I'll get the specifics on the property. There may be someone on here that is interested. Never know. I know that no one in my family wants it.
Uh, if your talking about those Republic of Texas people, word of caution, stay away. VERY FAR AWAY!!! While I'm a Native Texan and right proud of my home state and like that Texas CAN secede, those people are LOONBALLS!!!! The government knows of EVERYONE involved in that group. One of our ex-employees I guess is now as they (the guvment ) called recently asking what we knew about him. They don't beleive in paying ANY taxes to ANY government. Hey, I don't like paying taxes as much as the next guy but I really, really don't want to be in jail. And I totally know that it takes some money to build roads, public schools, etc. LOL!!
A couple of comments on the taxes and retiring....most property taxes freeze at a certain age and do not keep going up, specifically to prevent retired folk from being displaced. Only problem is if you retire too young :-).
Also, my parents run a small ranch in the hill country, raising wool sheep and some market sheep, as well as training herding dogs. They have an agricultural exemption for about 95% of the property and pay about $8/acre/yr in property tax. The house pays the regular market value taxes, but they have long since been frozen (parents are >70). If they decided to sell their 'excess' land, their property taxes would remain unchanged, regardless of what occurred on the adjacent land.
Re: the R.O.T people, they are really just trying to avoid taxes. At least, every one I have ever met. They are quite paranoid, generally, because they usually have not paid income tax to fed gov in many years.
They don't "freeze" the property tax on retired people to keep it from ever going up. There IS an exemption for those over 65 and those w/ disabilities. I beleive I posted this exact info on another thread awhile back. There are SOME cities that have put "freezes" in place for those over 65 but they have since found it was not in their best interests. What usually can happen is if a city/town implements such they will get a flock of those over 65 wanting to live there and then the incoming funds for the city end up getting drained as there is no income to make up for the lost revenues from such freezes. So the appraised value that can be taxes DOES increase for those over 65 if the entire area goes up. They just get a larger exemption over the normal "Homestead Exemption". Below is what is on the Dallas County Tax Appraisers website that tells about the over 65 exemption:
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Over-65 Homestead Exemption
You may qualify for this exemption on the date you become age 65. You must submit proof of age. Acceptable proof includes a copy of the front side of your driver's license or a copy of your birth certificate. If you qualify for the Over-65 Exemption, there is a property tax “ceiling” that automatically limits School taxes to the amount you paid in the year that you qualified for the homestead and Over-65 exemption. A County, City or Junior College may also limit taxes for the Over-65 Exemption if they adopt a tax ceiling. Tax ceiling amounts can increase if you add improvements to your home (i.e. adding a garage, room or pool).
In addition, Over-65 homeowners who purchase or move into a different home in Texas may also transfer the percentage of school taxes paid, based on the former home’s school tax ceiling. This is commonly referred to as a Ceiling Transfer. To transfer your tax ceiling for the purposes of County, City or Junior College District taxes, however, you must move to another home within the same taxing unit. You must request a certificate from the Appraisal District for the former home and take it to the Appraisal District for the new home, if it is in a different district.
Over-55 Surviving Spouse of a Person who Received the Over-65 Exemption
If qualified, a Surviving Spouse may receive an extension of the Over-65 exemption and the tax ceiling. In order to qualify, your deceased spouse must have been receiving the Over-65 exemption on this residence homestead or would have applied and qualified before the spouse's death. The Surviving Spouse must have been 55 years of age or older on the date your spouse died. You must have ownership in the home and submit proof of age and proof of death of your spouse.
Disability Homestead Exemption
Persons with disabilities may qualify for this exemption if they 1) qualify for disability benefits under the federal Old Age, Survivors and Disability Insurance Program administered by the Social Security Administration or 2) have a physicians statement indicating the date the disability began and that you are unable to engage in any substantial gainful work for a period which has lasted or can be expected to last for a continuous period of not less than 12 months or that can be expected to result in death.
If you qualify for the Disability Exemption, there is a property tax “ceiling” that automatically limits School taxes to the amount you paid in the year that you qualified for the homestead and Disability exemption. A County, City or Junior College may also limit taxes for the Disability Exemption if they adopt a tax ceiling. Tax ceiling amounts can increase if you add improvements to your home (i.e. adding a garage, room or pool).
in addition, Disabled homeowners who purchase or move into a different home in Texas may also transfer the percentage of School taxes paid, based on the former home’s school tax ceiling. This is commonly referred to as a Ceiling Transfer. To transfer your tax ceiling for the purposes of County, City or Junior College District taxes, however, you must move to another home within the same taxing unit. You must request a certificate from the Appraisal District for the former home and take it to the appraisal district for the new home, if it is in a different district.
You may not receive both this exemption and the Over-65 exemption.
Hmm....I guess since they live out in the county (no city taxes) and the school tax was the major bill, that is what they must mean when they mention it. Not sure what the county taxes are, either, but I was under the impression that those had been capped, but maybe not.
texasdreamin,The county tax appraiser CAN NOT come in just willy nilly and put a higher price on my property because someone several miles away sold for twice the price of mine. They base it according to the immediate area and what homes in that area are selling for.
Okay, then I'm not understanding this correctly. I thought that the assessment was based on all homes within the neighborhood, overall. I had read that when homes in the immediate area are assessed at a certain value, all homes in the area are taxed at that value, whether they are equivalent, or not. Maybe I misunderstood it.
There IS an exemption for those over 65 and those w/ disabilities.
According to the appraisal board in Vega, there is a $15k homestead credit in the city for people over 65, not a freeze. Which is fine if your house is only valued at $20k or so. But if it's valued at $250k, that $15k credit isn't worth much.
The county (Oldham?) does not appear to have that credit. Land is not taxed if it is used for agriculture in 5 out of 7 years, but she did not explain if this included the residence or just the land.
This has been very interesting to explore - thanks for the input.
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It was inherited. My grandparents bought it MANY, MANY years ago for nothing. I think it is still worth "nothing" 
. The taxes on it are $100 a year. Whoopee. Now if they ever start to develop around there and they did a few years ago but nothin. Nada. Not a thing. Still have it. A piece of dirt, literally dirt, in Colorado not even IN the mountains and it is West of Colorado Springs. 
The first guy was a lil green behind the ears. The second one was a supervisor that thought that he could bs about other stuff (kids and all) and get away w/ it. Guess like my mama always said, "third times a charm". 
