Texas Property Tax Reform

[Ruffdaddy]

Has anyone that knows real estate better than me been following Texas real estate tax reform?

The wife and I were looking at getting a bigger lot with a 4 car garage...and the house price isnt what kills me. It's the fact that I will be paying over a grand per month in just taxes alone.

So does anyone know if the tax reform going through the Texas govt right now will actually help rates...or will it just slow the rate of increase?

I cannot get over pissing away that much money to the govt regardless of if its within budget. Going from my house now to the house we're looking at will result in a 100K+ loss over 15 years from real estate taxes alone if assume a 5% return annually.

[TX_92_Notch]

I haven't been following it. I've seen the topic pop up several times over the last few years and have always dismissed it, figuring there's a fat chance we'll see any significant savings.

Personally, I would rather see a state income tax than the outrageous property taxes. I dread paying these property taxes in retirement. Let the working folks carry the burden. Ease up on the retired folks.

Cut property taxes to 10 or 20 percent of the current rate, add a state income tax and maybe bump the sales tax up a bit. Property owners get FUCKED.

[46Tbird]

Someone has to pay for all the freebies, DEBT SLAVE

[bcoop]

Read this. Not enough to make a real difference to each individual homeowner. And I wouldn’t base my decision on the promises of some lying ass politicians, either.

https://www.texastribune.org/2019/04/08/texas-property-taxes-homeowners/

[Big A]

I dread paying these property taxes in retirement. Let the working folks carry the burden. Ease up on the retired folks.

How about you plan fully for your retirement, and not rely on us working folks to carry your wanna-be free-loading ass.

[Ruffdaddy]

How about you plan fully for your retirement, and not rely on us working folks to carry your wanna-be free-loading ass.

While I think there is a ceiling the over 65 crowd can apply for...its still complete bullshit that property taxes can increase 10% year over year indefinitely.

This is how many people get taxed out of their homes. If I plan really well and retire at 55 and own a 500K house....my taxes can literally go from $1100 a month to $2700 a month until I can cap it with a tax ceiling.

Or let's say a middle income family can easily afford the 415/mo taxes on their 200K house. In just a 10 year span that exact same house can have taxes at over 1K...more than 2.5 times the original rate. That's an extreme example but property tax values have easily doubled for many.

Property taxes undoubtedly hurt Texas real estate as well.

[svauto-erotic855]

Has anyone that knows real estate better than me been following Texas real estate tax reform?

The wife and I were looking at getting a bigger lot with a 4 car garage...and the house price isnt what kills me. It's the fact that I will be paying over a grand per month in just taxes alone.

So does anyone know if the tax reform going through the Texas govt right now will actually help rates...or will it just slow the rate of increase?

I cannot get over pissing away that much money to the govt regardless of if its within budget. Going from my house now to the house we're looking at will result in a 100K+ loss over 15 years from real estate taxes alone if assume a 5% return annually.

The government will never ever ever limit the amount that they take from you.

I haven't been following it. I've seen the topic pop up several times over the last few years and have always dismissed it, figuring there's a fat chance we'll see any significant savings.

Personally, I would rathersee a state income tax than the outrageous property taxes. I dread paying these property taxes in retirement. Let the working folks carry the burden. Ease up on the retired folks.

Cut property taxes to 10 or 20 percent of the current rate, add a state income tax and maybe bump the sales tax up a bit. Property owners get FUCKED.

You're absolutely insane if you want another government entity to have a copy of your tax return. Once an income tax is enacted it will only grow in the bite that they take from you and it will never be repealed.

[Big A]

While I think there is a ceiling the over 65 crowd can apply for...its still complete bullshit that property taxes can increase 10% year over year indefinitely.

This is how many people get taxed out of their homes. If I plan really well and retire at 55 and own a 500K house....my taxes can literally go from $1100 a month to $2700 a month until I can cap it with a tax ceiling.

Or let's say a middle income family can easily afford the 415/mo taxes on their 200K house. In just a 10 year span that exact same house can have taxes at over 1K...more than 2.5 times the original rate. That's an extreme example but property tax values have easily doubled for many.

Property taxes undoubtedly hurt Texas real estate as well.

I agree with all of that, but the fix isn't to expect someone else pay for your tax burden.

[dblack1]

Where I'm at in TN we have something called ag exemption. You have to have over 15acres. Being in a surrounding county of Nashville the tax rates are insane now. They are about to annex me in to City limits but I'm still ag exempt on taxes, though now I'll have City taxes. It never stops. I have land in another state that the city annexed into the city limits. Taxes doubled. Can't hunt on it with a rifle any longer.

The recent tax changes on the amount of interest and pepper tax you can deduct went way down with Trump's tax "cuts". I lost a lot of yearly deduction money from not being able to do all my mortgage interest and property taxes any longer. People move here for not paying state income taxes, and in most parts TN is really really cheap. I'm looking at land a county away and the property taxes on almost 200 acres is less than 100 a month with the ag exemption. In my county it would be $500.

[cool cat]

I thought once you hit 65 your property taxes froze at that amount, on your homesteaded property.

[Ruffdaddy]

I thought once you hit 65 your property taxes froze at that amount, on your homesteaded property.

They can. Read my post above.

And I'm 32 so I'm not even close to a cap but I do want to retire in my mid 50s.

[bcoop]

Where I'm at in TN we have something called ag exemption. You have to have over 15acres. Being in a surrounding county of Nashville the tax rates are insane now. They are about to annex me in to City limits but I'm still ag exempt on taxes, though now I'll have City taxes. It never stops. I have land in another state that the city annexed into the city limits. Taxes doubled. Can't hunt on it with a rifle any longer.

The recent tax changes on the amount of interest and pepper tax you can deduct went way down with Trump's tax "cuts". I lost a lot of yearly deduction money from not being able to do all my mortgage interest and property taxes any longer. People move here for not paying state income taxes, and in most parts TN is really really cheap. I'm looking at land a county away and the property taxes on almost 200 acres is less than 100 a month with the ag exemption. In my county it would be $500.

Texas has Ag exemptions, and the qualifying factors vary by County. For instance, Grayson County you must have 10+ acres AFTER the house is carved out (1 acre). Collin County, I think the minimum is 5 acres.

But that doesn't solve the problem. Say you have a $400,000 house on 11 acres. Your ag exemption only applies to the remaining 10 acres, there is zero tax benefit on the house and the 1 acre it's attached to. So you get a break on the land, but what they will do is, increase your value on the home and not the land. If you're homesteaded, you can plan on 10% max every single year. If you're not, they'll bend you over harder. The govt will ALWAYS find a way to get their taste.

[dblack1]

They will, but 10% a year is still robbery.

I'm about to get to start paying a storm water run off yearly fee tax based on sq footage of my buildings here in TN. It's always something new.

[svauto-erotic855]

They will, but 10% a year is still robbery.

I'm about to get to start paying a storm water run off yearly fee tax based on sq footage of my buildings here in TN. It's always something new.

Wow, it sounds like they found a way to tax the rain.

[bubbaearl]

How about you plan fully for your retirement, and not rely on us working folks to carry your wanna-be free-loading ass.

kinda like paying school taxes for 50 years with no kids ?