Real Estate Broker · Austin, TX · Member since 2012 · 1k+ posts · 1k+ votes
I am not sure what you all think about this but I think its very interesting. It seems that the property tax problem is about to change without the so-called "nuclear option" that Lt. Dan Patrick was floating. I am paying attention to this very closely as that will affect my pocket book directly. Thoughts? I think that it will have a major effect upon Austin Texas. Rooting for it. Contact your congress member.https://www.texastribune.org/2019/04/15/texas-senate-passes-property-tax-bill-dan-patrick/
I am not sure what you all think about this but I think its very interesting. It seems that the property tax problem is about to change without the so-called "nuclear option" that Lt. Dan Patrick was floating. I am paying attention to this very closely as that will affect my pocket book directly. Thoughts? I think that it will have a major effect upon Austin Texas. Rooting for it. Contact your congress member.https://www.texastribune.org/2019/04/15/texas-senate-passes-property-tax-bill-dan-patrick/
Be careful what you wish for, you just might get it. Each state has various programs they want, and can set their revenue streams accordingly. You have lower income taxes than most states, for example. If the powers that be lower Texas property taxes, don't be too surprised if a legislative session or two later they hike your income taxes in this great great shell game that is "who do we tax and how do we tax them to pay for the stuff we want?" They're going to get their pound of flesh one way or another.
We have our dials set differently in California, to the point that my grandma's $1.2m duplex has property taxes of about $1400 per... year. Not a typo, you read that right. But that isn't free, I'm paying for my grandma's low property taxes each and every time my state income tax bill comes in. As a reasonably cynical person, I am forced to assume that a dip in my state income tax bill will be correlated with a hike in my grandma's property taxes, possibly delayed a legislative cycle or two, but it would happen nonetheless.
Excellent post timing since TravisCAD just dropped the 2019 assessments today. My family got off lucky compared to some. Only have a dispute a $7 per square foot discrepancy. I see some assessments that are off by $100 per square foot.
@Chris Mason We need a proposition 13! If your grandmother lived in Austin, she would be hard pressed to still be there in that house. Its going to be very interesting. That pound of flesh does have to come from somewhere though, I get it.
So the tax reform just got its first approval, but I’ve been trying to read up and understand how this will affect my rental property real estate taxes.
The proposal limits tax revenue increase to 3.5% without voter approval. Does this mean even if assessments go up more than 3.5% (I.E. 15% assessment increase this year) my actual dollar paid will only increase 3.5%? Also if it’s only increase in net total revenue collected by the local taxing district, that would seem to imply investment property can go up by more than 3.5%, as the 10% assessment increase limit on homesteads will force non-owner occupied real estate to pick up the slack.
That house bill will do very little even if it gets passed
Our Taxing system allows these blood sucking county bureaucrats to play a cup and marble game confusing the public. Still getting us with higher than hell values . A FLAT Property Tax system for Texas is what we need. Move to a more capitalistic scientific approach, that is more of a Texan way of doing things.
Its a huge problem where one is taxed more for being a good steward of the property, then less for letting their improvements slide in to some slum lord scenario, giving less benefit to all our communities. How can that be good?
We have to fix the wild out of control form of math first , then move forward to then control the rest of it.
For example: commercial retail taxes needs to be taxed per foot-per proximity to corners and/or car counts, amount of parking, etc. Mathematical equation(s) can be derived with a fair amount of accuracy simply because its math. At first, there will be many untended consequences to what I am saying but that could be work it out in just a few years because now we are doing this with science and math.
Residential property taxes would be very simple to tax, same per foot per plumbing fixture for example. Why in Gods name should we tax people for like fixing a driveway to get cars out of the street for just one small example
People is poorest areas would be the biggest winners of all. All that property that is now in some sort of dilapidation stop. It would then be too expensive for people to just let it sit and do nothing. All that land , all those buildings would have pressure to produce jobs and fruition to the communities. Prices on them would drop to allow a real user take possession.
I think that we are getting a bit of relief..yay!! From what I understand anytime the taxing entities wants to raise taxes by more than the new rollback rate then it will have be taken to a citywide vote. In other words, it keeps budgets in check so they aren't frivolous with their spending. Hopefully, we can start cash flowing more in the future....
@Aaron Gordy I've been following this post and trying to keep up with what they are doing in Austin. I guess I'm not completely surprised when I found this quote from the author of the bill:
While the bill makes the tax process more transparent, “it does not lower anyone's property taxes.”
“It was never designed to do that, and I've never promised anyone that it did,” said Burrows, a Lubbock Republican.
@Mike Burkett Its a step in the right direction, imo. It keeps the city powers that be from increasing taxes willy nilly without getting approval from the citizens. The Austin Mayor and many other mayors in other metros are saying that it will decrease public safety. To me, that is just political maneuvering.
The city hall is sitting on prime territory in downtown overlooking ladybird lake. If they are hurting for money then sell it. The county and the city are the biggest owners of land in town. Sell property if they need to. Also, I am hoping that the possible budget crunch will force politicians to deal with the bass ackwards robin hood school finance.
Property taxes really affect folks here in Austin. I was looking at a duplex yesterday where the taxable value went up from 178k to 434k and there is no way that property is worth that much. No bs. That is nuts. No wonder there is a little industry here in Austin to protest property taxes. It seems so asinine.