Texas Property Taxes

[SteveR]

  However, how do indigents pay for these services? 

Let them eat cake!

OK, just kidding on that one.

I have lived in areas where you did have to pay for some services like:
Fire protection was a user fee paid system to a volunteer fire department.
Sewer service is not taxed in most places
Garbage collection is a paid service
State parks have user fees as do National parks yet both get money from taxes.

With that I will return this thread back to the original one on Tejas property taxes....paid my fair share of them too at one time.

 

[REWahoo]

Just when you think they've figured out how to tax just about everything...

'View tax' triggers revolt in rural N.H.

ORFORD, N.H. (AP) — The one-room cabin David Bischoff built in a cow pasture three years ago has no electricity, no running water, no phone service and no driveway. What it does have is a wide-open view of nearby hills and distant mountains — which makes it seven times more valuable than if it had no view, according to the latest townwide property assessment. He expects his property taxes to shoot up accordingly.

http://www.usatoday.com/news/nation/2005-10-31-view-tax_x.htm

 

[JPatrick]

Just when you think they've figured out how to tax just about everything...

'View tax' triggers revolt in rural N.H.

ORFORD, N.H. (AP) — The one-room cabin David Bischoff built in a cow pasture three years ago has no electricity, no running water, no phone service and no driveway. What it does have is a wide-open view of nearby hills and distant mountains — which makes it seven times more valuable than if it had no view, according to the latest townwide property assessment. He expects his property taxes to shoot up accordingly.

http://www.usatoday.com/news/nation/2005-10-31-view-tax_x.htm

Now only the view, he's got a high dollar security system.

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[Craig]

We paid real estate taxes in TX for two years. Never again. Outrageous.

Ever notice lists of high appreciation areas for real estate? TX is not often on them, especially of late.

In Dallas you get the "best" of both worlds: little appreciation, high property taxes (like $600/month for a $300K home), and ... little liquidity. Can be tough to sell a TX home last few years.

I heard the "but we have no income tax" argument too. Doesn't wash. Besides, as noted above, if you're facing a challenging time, the taxes just keep rolling on.

Now, TN is interesting. Little to no income tax, low property taxes, and sales taxes comparable to TX. Plus, similar home prices (a bit higher), temperate climate. Nashville is booming like you can't believe. My theory is that folks are selling in high cost, expensive real estate areas, reinvesting in Nashville, and pocketing the difference for retirement or consumption.

 

[SteveR]

I would hate to see what they would charge me for this view!
(View from the deck of my cabin.)

 

[eridanus]

Now, TN is interesting. Little to no income tax, low property taxes, and sales taxes comparable to TX. Plus, similar home prices (a bit higher), temperate climate.

But TN taxes dividends and interest. That's not very FIRE friendly.

 

[MasterBlaster]

Charles:

Well Tx may have high property taxes but they have NO income tax. They have to get it out of you one way or the other. It all kind-of balances out

- Death and taxes

 

[laurence]

That's why you live in Vancouver WA (no property tax) and drive across the bridge to Portland, OR to do all your shopping (no sales tax)! The problem with where I live (California) is I have property tax, melloroos, sales tax....these three alone add up to about $7,500 a year, and I haven't paid the Feds, social security, or state income tax! And people think I'm lucky because the average cost for a house now is double what I paid (double property tax) and I don't have a home owners association, which almost every new development seems to have now.

 

[justin]

The problem with where I live (California) is I have property tax, melloroos, sales tax....these three alone add up to about $7,500 a year, and I haven't paid the Feds, social security, or state income tax!

Is that why they call it the "left" coast?

 

[laurence]

Except we elect illiterate Repubs to run the state.

One way to beat the system, so to speak, is to stay in your current home. Prop 13 keeps your property tax from rising (much) and the melloroos in my community end in ~15 years. I'm in a 20 year mortgage, so in 19 years when all that's done, I'll go from ~$32,000 a year housing cost to about ~$3,000 plus a small property tax adjustment. Now if I go an "upgrade" to a newer, bigger home, not only will I add a couple hundred thousand to be paid off, but my property tax will zoom up to current market value. See the games we play when tax code is whacky?

 

[justin]

Except we elect illiterate Repubs to run the state.

I've always wanted a movie star for my governor. I guess that is what happens when Hollywood is in your state. All the zany actors think they know what is best for everyone else. Too bad Aahnold can't bench press away all of California's fiscal concerns.

melloroos - interesting concept local to California. I figured it had something to do with Australia till I googled it. You say your melloroos will end in 15 years - aren't there pretty good odds of having another melloroos in the next 15 years? We have bond referendums all the time here in NC, but the debt service comes out of our usual property taxes.

 

[laurence]

Darn well hope not! The melloroos covers such a small area (about 5000 homes), it is used to pay off the debt incurred for the community areas/open spaces. Since they are opent to the public, the developer and the city worked out some deal on that end. Can't do much if the city comes up with a tax, but the melloroos themselves should fade away.

 

[justin]

From my admittedly brief research on google, it looked like municipal capital improvements (like building a new school) could be funded with melloroos $$. The gov't will get your money one way or another, whatever it is called!

 

[Nords]

Except we elect illiterate Repubs to run the state.

Illiterate or unintelligible? Maybe he's just emulating the inarticulate President.

Maybe they'll both be nyoocyoolar engineers after they get voted out retire...

 

[tashina]

DH and I just relocated from the Bay Area to Austin and I think we'll be doing okay here. A new 2000 sq ft condo in my old area (Dublin/Pleasanton) was about $650k. Property Taxes at 1.25% would be $8125.

Even in pricey Austin, a 2500 sq ft new house in a great neighborhood will run you only $300,000. Taxes at 2.7% will cost you $8100.

Sales tax is similar in both cities. Austin has no state income tax. California is limited to 2% increases on property taxes instead of 10%. Some people think the Bay Area has better weather (not me, I hate cold fog). Some people would rather be in the 2500 sq ft house than the 2000 sq ft condo. The Bay Area's real estate market has about topped, Austin's may or may not be slightly undervalued. Homeowner's insurance seems to be a little more in Texas. My car insurance is the same. Basic staples at the grocery store are less and gas is about $.40 less a gallon in Austin.

We figure to stay here until my husband quits working, then we'll reevaluate what state to go to next. That's probably 10 years in the future and who knows what the world will look like then.

 

[Texas Proud]

California is limited to 2% increases on property taxes instead of 10%.

You have a misconception on the rules for Texas... the 10% is an increase in the VALUE of you house, not the taxes you pay... If you house goes up by the 10% and all of your taxing units raise their rate, you will have more than a 10% increase in your taxes...