cutmytax

When it comes to owning a home, there are a lot of things to consider besides what kind of house you want and where you want to live. Owning a house means paying for property taxes which goes to local governments so you, as a resident of that district, can benefit from the public services they have to offer. This also means that your home’s value can either increase or decrease depending on the changes you make to it. Your state’s local appraisal district usually determines property tax. How it works is that an  appraiser  visits each property and reviews any changes that were made since the last time it was appraised. Appraisers usually asses the size and kind of improvements made to your property, its quality, and current condition, plus your property’s characteristics. With these, the appraiser will determine how much tax you need to pay based on your property’s value. DEFINING REPAIRS AND IMPROVEMENTS Knowing that appraisal districts review your home before deter...

Follow the path of one homeowner, Chuck Devore, a recent transplant from California as he goes through the process of protesting his high property tax value in 2019. While Texas state government has done a decent job over the years in limiting spending growth to around population and inflation, especially compared to other states, this hasn’t been the case at the local level. Local governments in Texas—counties, cities, school districts and some others like municipal utility districts and hospital districts—raise and spend more than half of government expenditures in Texas excluding federal dollars. This means local government spending habits have an outsized role in the state’s tax climate. Fortunately, if Texas property owners believe their government appraisals are too high, they can protest them—though the tiny percentage who do usually hire someone for the task. He filed a protest, received his date and time to appear, and,  having taken a vacation day , trooped down to ...

Today, business owners are angry about increasing property values and they are choosing to fight back in larger numbers than  EVER BEFORE . While the programs our property tax dollars pay for are important, no one wants to pay more property taxes than they legally owe. So, the questions you need to ask yourself are:  Is your property equally assessed?  Are you paying higher property taxes than your neighbors? Can you spend your money better than the government can? HOW ARE THE TAXES CALCULATED? Commercial property taxes are calculated by the appraisal districts based on the market value.  State law requires the appraisal district to determine the market value of each property as of January 1.  Of course, market values change with the rise and fall of the economy.  Home values are higher when the local economy is stronger and trend down when the economy slumps. Have you experienced a reduction in your property taxes when the economy slows down?...

Some of the  top  real estate professionals weigh in on what trends they expect in 2020, courtesy of the Houston Business Journal! Houston remains one of the most affordable large cities in the country. MULTIFAMILY TRENDS The population and job growth remain  healthy , so the multifamily sector is expected to stay strong, at least in the short term. Demand still appears to be outpacing supply overall, but be aware that Houston has a history of overbuilding, especially when the market is strong. Renting has become an attractive long-term option for everyone, from millennials to baby boomers, and everyone desires a place to call home for which they can be proud of. Because of this, more apartments are being constructed with eye-catching building designs and curb appeal. MIXED USE TRENDS There’s  more interest  in the mixed-use opportunity where you can buy a bigger tract of land and you can get your basics down. If we can master plan a bigger tract, th...

If you don’t know yet, it is possible for voters to petition to  reduce the tax rate  in Texas. This normally happens when the increase has passed the limit stated by the law. TAX RATE LIMIT As of now, the threshold is 8%. But after the Reformed Property Tax Code of Texas, it has now decreased to 3.5%. This is a different number from what Texas Governor Greg Abbott wants. He first supported the 2.5% threshold. Yet, the 3.5% cap is still a great help for taxpayers. It won’t significantly lower the property tax they have to pay. But it will slow its growth, and they can ultimately save some money. The new limit to the tax rate will take effect in 2020. WHAT HAPPENS IF TAXING UNITS GO BEYOND THE THRESHOLD? It’s not impossible for taxing units to go beyond the proposed 3.5% threshold. In fact, it’s rather common. That’s why the law was made to help the public. Even before the Reformed Property Tax Code, voters can petition an election. This tackles the increase...

As if there aren’t already enough factors to consider when organizing a home improvement project, don’t forget to add property tax assessments to the list. Property tax is a real estate tax paid by the owner of the property and is based on the home’s assessed value. Property tax characteristics vary by state, but generally speaking, remodels and renovations will increase the value of a home and subsequently result in an increase in property taxes. So, if you’re looking to make any home improvement updates, take into account the following guide to prevent a substantial spike in your property tax bill. AVOID EXTENSIVE RENOVATIONS Most renovations will subject a home to a reassessment since they are adding value to the home. While there is no precise list of taxable home improvements, some are more likely to trigger a reassessment than others. By and large, the most standard projects known to do so are: Improvements which add square footage to a home, such as adding a deck Any ...