Archive for the ‘Taxes’ Category

How the Texas Homestead Tax Cap Works

Published by TechTeam on January 28th, 2012 - in Tax loopholes and exceptions, Taxes, The Basics

 

How the Texas Homestead Tax Cap Works (in simple terms)

For homes that are receiving a homestead exemption, which is any property that the owner considers their primary residence, the appraised value may be lower than the property’s market value because of what the law refers to as the ‘homestead cap’.

Currently the law states that, while a property’s January 1st market value isn’t capped, the property’s appraised value is capped at a maximum increase of 10% from the previous year.

So, lets say

  • the market value of someone’s home on Jan 1st is 200,000$
  • But, the year prior it was only valued at 170,000$.
  • This years appraised value would be 187,000$, which is an increase of 10% from the previous year

But, in some situations, the value of the home can go down while the appraisal goes up.
Lets pretend that next year, something happens and

  • the home’s value drops from 200,000$ to 190,000$
  • The cap for that year would be 205,700$
  • The appraised value would increase from 187,000$ to 190,000$

and taxes would increase even though property value decreased

To qualify the owner must first receive the homestead exemption, then the value must increase more than 10% within a year.

For more informative tax articles and videos visit  fypllc.com
For a Property tax Loan visit TexasPropertyTaxLoans.com

No Comments »

Split Payments: first half due next week

Published by Research Editor on November 23rd, 2011 - in Local taxes, Taxes

tax payment split dollar cracked

If you decide to split your property tax payments, November 30 is the last day to pay the first half.

Why split payments

When you split your payments, you get to pay half of the taxes by November 30 and the other half by June 30 of the following year, without any penalty.

The no-penalty aspect is the best part, followed closely by the fact that you’re not facing an enormous lump sum all at once on January 31. The drawback, however, is that you’re paying half of the taxes two months before the January 31 deadline. If you’re strapped for cash, that isn’t always an option.

How to split payments

Contact your tax collection office to see if the split payment option is available for you. They’ll be able to walk through the steps specific to your local area.

Assistance

If you will have trouble paying your property taxes for 2011 and splitting payments isn’t an ideal option for you, consider getting a property tax loan to ease the burden.

25 Comments »

How to lower your property taxes

Published by Research Editor on November 10th, 2011 - in Protest, Taxes, The Basics

lowering property taxes

 

Property taxes: we all have to pay them. But there is never a need to pay excessive taxes. These two options will ensure you do not pay beyond your share in property taxes: homestead exemptions and protesting your home’s value.

Homestead Exemption

Be sure you’ve claimed your homestead exemption. Claim it once, and it’s yours for the rest of the time you live in that house or your status does not change. Also look at the other available exemptions to see if you qualify.

What if I’m not sure if I’ve claimed the exemption?

Look your property up. Run an internet search on “[Your county] property tax search.” The result will likely be a .gov site or have the intials “CAD” in the name, like hcad.org, for Harris County. The site you find should have an option to search through properties in your county, and the results will tell you if you’ve claimed the homestead exemption.

Is it too late to claim the exemption for last year’s taxes?

You have until one year after the delinquency date for taxes on your home. File the application for homestead exemption now.

Protest your home’s value

Every citizen has a right to equal and uniform taxation. The craziness in the economy combined with the fact that properties are not appraised every single year makes it likely that your property might be overvalued.

If you think your property is taxed above its value, look at our series on protesting property taxes.

29 Comments »

MyMoney.gov review: useful index

Published by Research Editor on October 28th, 2011 - in Taxes

MyMoney.gov is a useful index of articles from 22 different federal entities, in an effort to teach the public about important financial topics, including home ownership.

There’s not much information on this federal site about property taxes, since that is a local tax, but there is plenty of information that will be useful to you as a property owner. Some of the more interesting topics include:

In and of itself, mymoney.gov doesn’t have articles of its own, but it is a useful resource for finding financial information relevant to you on other pages. The Life Events tab at the top lists resources by various events, like home ownership, retirement, and natural disasters. The My Resources tab lists resources by attributes like youth, women, military, and non-profits. The Tools tab takes you to a list of links to tools you might find useful, like calculators (like life expectancy and debt payoff calculators), budgeting worksheets, and checklists.

15 Comments »

Tax Bills Are Heading Your Way

Published by Research Editor on October 3rd, 2011 - in Tax Penalties, Taxes
Today is the day your tax assessor will mail your 2011 property tax bill, according to the state’s property tax calendar.

Will you be able to pay your bill?

If, like most people, there’s financial insecurity in your home or business, there’s no need to default on your property taxes and suffer the drastic penalties. Consider a property tax loan to cover your complete property tax obligations, including interest and fees.

Tags: ,
10 Comments »

Homestead Exemption Changes

Published by Research Editor on September 3rd, 2011 - in Taxes, The Basics
Starting September 1, 2011, the Texas Legislature has added identification requirements to your new homestead application.

When you apply for a homestead exemption, you now must submit documented evidence that you live in your home, namely: a copy of your driver’s license and vehicle registration receipt.

There are alternatives to each. If you don’t have a driver’s license, a state-issued personal identification certificate will do. If you don’t own a vehicle, you can submit a copy of a utility bill in your name for the property.

This new legislation is an effort to prevent illegal exemptions, which increase the tax burden on everyone else.

You will not get a homestead exemption if you do not submit the correct documentation.

If you already have a homestead application, nothing changes for you.

Tags: ,
1 Comment »

The local services you provide through your property tax

Published by Research Editor on August 17th, 2011 - in Taxes, The Basics
outline of tree stoplight, police badge, dog, taxes pay for these
There is no state property tax in Texas. Your property tax is a local tax, going straight to the governing bodies near you. Nearly 4,000 local governments in Texas are the ones collecting and using your property tax, including cities, counties, school districts, and special districts.My home, for example, is taxed by my city, of course, but again for the county, the regional water district, the school district, and the college district.

The different districts use the money for their local needs. Streets, fire protection, police departments, schools, colleges–property taxes are the largest single funding source for these community services. But just what are, exactly, the services you are paying for with your property taxes?

Consider just some of the functions and services of the common governments that use your property taxes:

County

  • Restaurant inspections
  • Disease control
  • Water sanitation
  • Courts
  • Jails
  • Sheriff’s office
  • Public buses
  • Elections: managing elections and counting ballots
  • Animal care and control
  • Emergency management
  • Emergency planning services
  • Trails, parks, and open space
  • Wastewater management

City

  • Aviation
  • Local cable channel
  • Animal control
  • Consumer health
  • Garbage and recycling
  • Code compliance
  • Provides equipment servics to other city departments
  • Fire protection
  • Libraries
  • Municipal courts
  • Parks
  • Athletics
  • Community centers
  • Forestry
  • Graffiti abatement
  • Building permits and plans
  • Inspections
  • Neighborhood education
  • Police
  • Public events
  • Streets, lights, signals, markings
  • Parking meters and city-owned parking garages
  • Storm water, including high water warning flashers, drain cleaning, maintaining drainage canals
  • Tap water

School district

  • Elementary education
  • Secondary education
  • School buildings
  • Teachers
  • Supplies
  • Utilities/maintenance
  • Administration
  • School counselors
  • Staff development/training
  • Extracurricular activities
  • Computers and technology
  • Library
  • School buses
  • Nurses
  • Security
  • “Improve the lives of homeless and at-risk families” in the school district, sometimes including free meals during summer vacation for the children of such families.

Community college

  • College education
  • Small business development, including counseling and mentoring
  • Continuing education
  • High school outreach
  • Dual enrollment/early high school
  • Instructors
  • Academic support
  • Student services
  • Scholarships and fellowships
  • Maintenance of property
  • Tuition discounts
Tags: ,
No Comments »

ALL property is taxable…except when it isn’t

Published by Research Editor on August 17th, 2011 - in Taxes, The Basics
motorcycle outlined also text saying ALL property is taxable…except when it isn’t

 

The Property Tax Code states that all property is taxable if it is located in Texas.

Now, before you start wondering how behind you are in taxes because you didn’t pay property tax on your computer or carpet or carbureator, the tax code continues: all property is taxable unless there is an exemption.

Fortunately, there are quite a few exemptions available. Yes, even ones to cover your keyboard.

The exemptions that apply to most of us are:

  • Residence homestead. For the property you live in.
  • Family supplies for home use
  • Tangible personal property
  • Motor vehicle for personal activities or used to produce income

Most of these common exemptions don’t require you to even apply for the exemption–you automatically get it.

So take a deep breath and relax–you don’t have to pay property tax on your dining table. At least, not here in Texas. Other states, we can’t vouch for, though we’ve heard horror stories.

Tags:
No Comments »

Dissatisfied with the ARB’s decision? You have options.

Published by Research Editor on August 17th, 2011 - in Protest, Taxes

balance scales with text 'dissatisfied with ARB's decision?'

So you’ve gone through the ARB hearing, presented your evidence, made your case. Eagerly, you awaited the ARB’s decision to arrive by certified mail.

But it was disappointing. Dissatisfying.

Is that it? Since you’ve already gone through the hearing, is this really the final word on it?

No. You have options: a binding arbitration, an appeal to a state district court, or an appeal to the State Office of Administrative Hearings. First consult with an attorney to determine if you have a case.

Binding Arbitration

If your property is worth $1 million or less (or is a residential homestead, regardless of value), and you are disputing the decision on market or appraised value, you can appeal the ARB’s decision through binding arbitration. Disputes on unequal appraisal determinations cannot be appealed in a binding arbitration.

Fill out the form quickly–the deadline is 45 days after you get the ARB’s order in certified mail. Along with the form, pay a deposit of $500 in money order or a cashier’s check, made payable to the Comptroller. If the arbitrator ends up setting the value of your property closer to your opinion of value than the ARB’s, you’ll get $450 back.

Alternatively, you can pay $250 for expedited arbitration–which limits you to one hour of argument. It also limits the appraisal district to one hour.

Once your form is processed, the Comptroller’s office will send you a website to choose an independent arbitrator. You and the appraisal district must agree on who the arbitrator will be. If you cannot agree, the Comptroller’s office will chose for you.

State District Court

File for a petition for review no later than 60 days after the ARB’s order comes to you in certified mail. You may ask to have your appeal resolved through arbitration, by a jury or a judge.

State Office of Administrative Hearings

If your property is worth more than $1 million and is in Bexar, Cameron, El Paso, Harris, Tarrant, or Travis county, you can appeal to the State Office of Administrative Hearings (SOAH) in a special pilot program. The SOAH is limited to 3,000 appeals and runs through 2012.

Fill out the form and submit it to the chief appraiser of your appraisal district by 30 days after the certified mail with the ARB’s decision arrived, along with a $300 filing fee payable to SOAH. “What form should I fill out,” you ask? The chief administrative law judge will prescribe the form.

Don’t Forget the Taxes

No matter what type of appeal you choose, remember that you must pay your taxes before the delinquency date. Usually, you can make a partial payment of taxes–the amount that is not in dispute. For example, if your property is, in your opinion, worth $100,000, but the ARB determined it was worth $200,000, you must pay the property taxes on the $100,000 worth of property before the delinquency date while you pursue arbitration or appeals.

If you are unable to pay the undisputed property taxes, consider a property tax loan.

Tags: , ,
29 Comments »

How to Calculate your Property Taxes

Published by Research Editor on August 17th, 2011 - in Taxes

outline of home and caltulator with text how to calculate your property taxes

1. Find out your tax jurisdictions.

My home, for example, is under the tax jurisdictions of the city, the regional water district, the county, the county’s hospital, the county’s college district, and the school district.Some counties have a handy property data search that lists your property’s tax jurisdictions, tax rates, and exemptions. To find if your county has a property data, search online for “YOUR COUNTY appraisal district property search.” It’s likely to be the second result that appears. Or go straight to the list of Texas Appraisal Districts at Texas CADand choose your county.

2. Find your property market value, exemptions, and tax rates.

These will be online, if available through your appraisal district.

3. Use this chart to calculate your taxes:

City County Water Hospital College School
Market Value
- Exempt value
= Taxable value
x .01
x tax rate/$100 value
= tax amount

Add the final line together to get your total property taxes.

Sample: the WBAP building in Arlington, where Texas Property Tax Loans is located.

City County Hospital College School
Market Value 503,243 503,243 503,243 503,243 503,243
- Exempt value 0 0 0 0 0
= Taxable value 503,243 503,243 503,243 503,243 503,243
x .01 5032.43 5032.43 5032.43 5032.43 5032.43
x tax rate/$100 value .648 .264 .227897 .13767 1.272
= tax amount 3,261.01 1,328.56 1,146.88 694.32 6,401.25

The total property tax for the WBAP building is: $12,832.02 (total of 3,261.01 + 1,328.56 + 1,146.88 + 694.32 + 6,401.25)

If the number for your property is a little overwhelming, consider a property tax loan.

Tags:
87 Comments »
© 2011 FYP, LLC.