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Old 07-09-2019, 12:22 PM
 
Location: Austin, TX
13,501 posts, read 30,038,368 times
Reputation: 7140

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She froze the taxes about 4 years ago, I guess, give or take. Maybe 5?

In any case, several exemptions went from 20k to 100k and then the school taxes froze. At the time, the house was worth maybe $230k?

As an aside, I looked at CO, and you have to live somewhere 10 years to qualify for retirement exemption, and it doesn't freeze anything, just gives you 50% off the first $200k (so a max of a $100k exemption). If you look at the freezing and how it hedges against inflation, it is really quite significant if you live there 10 year, 15 years, whatever. Doesn't help a ton on day one (although you do get a 65+ exemption on the school taxes prior to the freeze), but it really limits the increases.

Doesn't hurt she is in F'burg, where the rate is only 1.8% .
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Old 07-09-2019, 01:12 PM
 
Location: Wonderland
52,730 posts, read 41,520,106 times
Reputation: 73620
Quote:
Originally Posted by Trainwreck20 View Post
She froze the taxes about 4 years ago, I guess, give or take. Maybe 5?

In any case, several exemptions went from 20k to 100k and then the school taxes froze. At the time, the house was worth maybe $230k?

As an aside, I looked at CO, and you have to live somewhere 10 years to qualify for retirement exemption, and it doesn't freeze anything, just gives you 50% off the first $200k (so a max of a $100k exemption). If you look at the freezing and how it hedges against inflation, it is really quite significant if you live there 10 year, 15 years, whatever. Doesn't help a ton on day one (although you do get a 65+ exemption on the school taxes prior to the freeze), but it really limits the increases.

Doesn't hurt she is in F'burg, where the rate is only 1.8% .
Thanks for the info.

Overall, Texas property valuations are going up at a faster pace than that of the nation as a whole. So property taxes continue to increase as well.

In five years, the median home price in Texas has jumped over 50 percent. In some areas it's as high as 83 percent!
https://comptroller.texas.gov/econom...ch/housing.php

Texas is ranked #3 out of 50 when it comes to average property tax rate per state! YIKES. The only two higher ranked states are Illinois and New Jersey.

Lots of interesting info about various taxes per state in this article. Texas is ranked #15 out of 50 when it comes to overall taxes. It's becoming burdensome.
https://www.mortgagecalculator.org/h...erty-taxes.php

For some perspective, we bought our house in NE Texas just outside of Tyler five years ago. Our taxes then, with the homestead exemption, were around $3800. Now they are coming up hard and heavy on $6000. My gosh.
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Old 07-10-2019, 08:38 AM
 
Location: Austin, TX
13,501 posts, read 30,038,368 times
Reputation: 7140
Yeah, median home prices are going up fast, but generally speaking, that does not continue forever - there are up years and down years. I have to look back and remind myself that we basically had an unchanged value on our current home from 1999 to 2009. It went up and down, but was just barely up at the end of all that. If I mentally spread the current value out over the life of our ownership, it does not look nearly so bad. And I suspect that it will have a 'lull' at some point in the near future.

I don't know about NE Texas rates, but the Austin rates have dropped over the years as values have gone up, keeping the tax increases below the actual valuation increases.

The link to 'overall taxes' looks to be a property tax summary? Texas is shown as #11 for total average property tax bill ($4,660), with Austin being the highest metro ($7,012). Is there a section on total tax burden on that site?

I found a site that listed total tax collections for the state and divided it into the total population's income. A simple (although not perfect) way to come up with a comparative tax rate. On that metric, Texas comes out 45th out of 50. The per capita income is right in the middle of the pack (26th).

This appears to me to reinforce the idea that Texas' tax structure is excellent for dual-income families raising kids in a not extravagant house. Once you are empty-nesters, retirees, and/or are only single-income (or if you really like fancy houses in expensive areas), then the benefits disappear for the most part.
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Old 07-10-2019, 10:25 AM
 
Location: Wonderland
52,730 posts, read 41,520,106 times
Reputation: 73620
Quote:
Originally Posted by Trainwreck20 View Post
Yeah, median home prices are going up fast, but generally speaking, that does not continue forever - there are up years and down years. I have to look back and remind myself that we basically had an unchanged value on our current home from 1999 to 2009. It went up and down, but was just barely up at the end of all that. If I mentally spread the current value out over the life of our ownership, it does not look nearly so bad. And I suspect that it will have a 'lull' at some point in the near future.

I don't know about NE Texas rates, but the Austin rates have dropped over the years as values have gone up, keeping the tax increases below the actual valuation increases.

The link to 'overall taxes' looks to be a property tax summary? Texas is shown as #11 for total average property tax bill ($4,660), with Austin being the highest metro ($7,012). Is there a section on total tax burden on that site?

I found a site that listed total tax collections for the state and divided it into the total population's income. A simple (although not perfect) way to come up with a comparative tax rate. On that metric, Texas comes out 45th out of 50. The per capita income is right in the middle of the pack (26th).

This appears to me to reinforce the idea that Texas' tax structure is excellent for dual-income families raising kids in a not extravagant house. Once you are empty-nesters, retirees, and/or are only single-income (or if you really like fancy houses in expensive areas), then the benefits disappear for the most part.
Right. For instance, the state sales tax rate is about 8.19 percent. This does not include additional sales taxes that local municipalities tack on. For instance, locally our sales tax is I believe 8.45 percent. You do have to add in ALL taxes, not just focus on "well, we have no state income tax," or "well, you can cap your property tax on your homestead...at age 65." Sheeze, our house is appreciating at 6 percent or so a year - so sorry, but I'm not too impressed with that!

And in Tyler, they passed a bond - not sure how that's financed, but I think through sales taxes - for millions and millions of dollars to renovate and build schools. Now of course, we need quality schools. But I swear to you, and this is not an exaggeration, these schools look like the freaking Taj Mahal.

It's disheartening.
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Old 07-10-2019, 11:53 AM
 
Location: Austin, TX
13,501 posts, read 30,038,368 times
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Quote:
Originally Posted by KathrynAragon View Post
Right. For instance, the state sales tax rate is about 8.19 percent. This does not include additional sales taxes that local municipalities tack on. For instance, locally our sales tax is I believe 8.45 percent. You do have to add in ALL taxes, not just focus on "well, we have no state income tax," or "well, you can cap your property tax on your homestead...at age 65." Sheeze, our house is appreciating at 6 percent or so a year - so sorry, but I'm not too impressed with that!

And in Tyler, they passed a bond - not sure how that's financed, but I think through sales taxes - for millions and millions of dollars to renovate and build schools. Now of course, we need quality schools. But I swear to you, and this is not an exaggeration, these schools look like the freaking Taj Mahal.

It's disheartening.
The maximum sales tax rate in Texas is 8.25% - 6.25% state and up to 2% total for local. State-wide, the average is ~8.17%, which is 12th in the country. Interestingly, the 1st, 3rd, and 6th highest are LA, AR, and OK.

As for your property taxes - it appears that Tyler ISD did not have to pay into 'Robin Hood' from 1994 through 2014; however, in 1995 it paid in a $128,000. I suspect that number has gone up since then (I have never seen the amounts paid in go down!). As such, a portion of the ISD property tax bill is being 'recaptured' by the state. So, essentially, to raise $1 for the ISD, they have to tax your $1 times 'X', with 'X' being larger as more is recaptured. Currently, Austin is paying almost 2X. I will have to go check the latest numbers (I got these from a 2016 report) and see how much of Tyler ISD budget is being recaptures. In any case, it WILL increase the taxes faster than would otherwise happen.

The districts paying in the most:
https://texasscorecard.com/local/whi...d-tax-in-2018/

Edit:
Okay, in 2018 it looks like Tyler ISD only paid in $300,000 but also lost approximately $3.7 million in state funding due to being a 'pay in' district at all. That means the local school property taxes had to make up for approximately $4 million in revenue due to Robin Hood. Given that the current operating budget is ~$156 million, that represents only 2.6%. I personally consider that pretty manageable and probably not too big a drain on the budget .

While Austin is an outlier, it won't be for long:
Quote:
It is estimated that nearly 51 percent of all local revenue collected from [school] property taxes will be subject to recapture in FY2019. In FY2019, AISD anticipates the district will submit $669.6 million to the state in recapture funds. This amount is expected to increase by $115 million in FY2020
Houston has just reached the tipping point to pay in, and it will skyrocket, as well. From 2016, when Houston first 'triggered'. Two years later, it is now $272 million:
Quote:
HISD has been identified as “property-wealthy,” even though nearly 80 percent of its students come from low-income families. HISD’s recapture payment for the 2016-17 school year is approximately $162 million. This has already forced HISD to cut $95 million from the 2016-17 budget – $40 million from schools alone. More importantly, rising property values will cause HISD’s estimated recapture payments to grow, and the district could send more than $1 billion to the state in the coming years
So, the trick is to move to a 'property poor' area that gets money instead of pays in .

Last edited by Trainwreck20; 07-10-2019 at 12:17 PM..
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Old 07-12-2019, 11:04 AM
 
104 posts, read 118,181 times
Reputation: 120
Look to Dan Patrick for that answer. He has continually cut state funding to schools while property taxes have increased 14% under his watch. He is destroying public education and siphoning public school funds to his cronies who own charter schools. I don't know why people keep re-electing him. He's NOT a conservative Christian just because he's a republican!!
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Old 05-20-2020, 05:21 PM
 
Location: Texas
2,376 posts, read 1,608,315 times
Reputation: 7955
Texas considers itself a business-friendly state, meaning new company's moving in will get very favorable tax incentives, meaning the local city and county will have to pay for does incentives plus infrastructure, schools. My city has been paying into the Robin Hood program since inception. I’ve been in the senior category for 14 years and my property tax is still $5000. If I would turn 65 today my tax would be approximately $10K, add an additional 8.25% sales tax and it gets expensive. Also, the two $70+ million each high school football stadiums in our county are considered a necessity.
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Old 05-20-2020, 08:45 PM
 
549 posts, read 353,656 times
Reputation: 1110
Most of the property tax increase if not all of it is voter approved debt. Only thing people hate more than taxes are crappy roads. Road bonds usually pass 2-1 around here even with a tax rate increase. New schools is another that passes frequently but not at as high a margin. As usual people dislike "taxes" but like all the things they actually pay for.
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