Texas - Property tax bills may disappoint

Victoria Advocate ^ | 10/26/06

[Cat loving Texan]

Property tax bills may disappoint

October 26, 2006 - Posted at 2:12 a.m.

Property tax bills have gone out in the mail this month and anyone expecting to pay less because of the tax relief legislation passed by the Texas Legislature this year might be disappointed.

The tax rates remain unchanged for the city of Victoria, county of Victoria and Victoria College. The Victoria Independent School District dropped its rate 12.5 cents for each $100 of property value.

But property values set by the Victoria County Appraisal District and used to figure property taxes went up an average of about 5 percent for residential property.

That means bigger property tax bills for residents, with increases ranging from about $4 a year for a $40,000 house to about $79 a year for a $1 million house. That doesn't take into account any exemptions and it doesn't include other taxing entities, such as utility or drainage districts.

There is a new countywide taxing entity this year called the Victoria County Groundwater Conservation District. It assesses a 1-cent tax rate, which adds about $10 to the tax bill for of a $100,000 house.

2005 2006

House value $40,000 $42,000

Total tax bill $1,113 $1,117

School tax bill $621 $601

City tax bill $276 $290

County tax bill $159 $167

College tax bill $57 $59

2005 2006

House value $80,000 $84,000

Total tax bill $2,227 $2,234

School tax bill $1,243 $1,199

City tax bill $552 $581

County tax bill $319 $335

College tax bill $113 $119

2005 2006

House value $1 million $1.05 million

Total tax bill $27,837 $27,916

School tax bill $15,535 $14,999

City tax bill $6,900 $7,245

County tax bill $3,986 $4,185

College tax bill $1,416 $1,487

[Cat loving Texan]

Didn't the legislature pass a $2000 average yearly cut? More proof that we were decieved.

[mtbopfuyn]

Ha, as if anyone ever thought we'd get a break. It was a lie from the start. Everyone opening their property tax bill will have second thoughts on voting for Perry. I can't stand him but am worried those taxpayers will run to the RAT side.

[mnehring]

The $2000 cut was based on tax rates, the increase this describes is based on changes in home valuations.
I'll have to look more into if this chart represents the change simply in valuation not accounting for the cut in rates or if this is after accounting for the change in tax rates.

The good part is that valuation rates can be challenged and often, the homeowner wins- if they take the opportunity to challenge. (of course, you then have the issue of your resale value also being lower based on property value being lower..)

[mnehring]

You are blaming the wrong entity. The State government was responsible for the $2000 rate cuts, however, valuation increases are determined by the local appraisal district- they are the true culprits in increasing property tax bills.

Before we all get to bashing Governor Perry, remember that with all of these complaints, Texas still has the third or fourth LOWEST per capita tax burden in the country (and that includes property taxes) yet we generate the second highest per capita tax revenue...

[Bigun]

Texas still has the third or fourth LOWEST per capita tax burden in the country (and that includes property taxes) yet we generate the second highest per capita tax revenue...

I agree with that entirely but it does not change the fact that, to the average taxpayer out there, a $2000 rate cut translates to $2000 back in my pocket. The governor and his advisers have bungled the PR on this completely IMHO.

[Manfred the Wonder Dawg]

Taxpayers are always disappointed in reading the tax bill. Political promises hardly ever deliver. We should not be naive.

As another posted mentioned - our county politicos are responsible for the actual damage. The Texas governor has little power.

[Jedidah]

As to "bashing" Governor Perry:

The man has used the fake tax cut to promote himself. I got my city tax bill in the mail yesterday, and it is the same as last year's, to the penny. And my house is not worth a cent more than it was last year.

Perry is a promoter who is in the pocket of road developers. Trouble is that he has no reasonable opposition.

I'm an issues voter. I hate it when people vote on name recognition or a pretty face or cute kids, etc.

Fact is that Rick Perry had his chance, and he's blown it big time. Wish there was somewhere for him to go and someone competent to take his place.

[Hendrix]

Before we all get to bashing Governor Perry, remember that with all of these complaints, Texas still has the third or fourth LOWEST per capita tax burden in the country (and that includes property taxes) yet we generate the second highest per capita tax revenue...

Texas has some of the highest property taxes in the US and they just keeps going up more and more each year via valuations, which are automatic perpetual stealth tax increases.

Much of what you read on the Internet about what are property taxes are does not include all the property taxes from every level of government, so most of it is wrong. The "lowest tax burden" information you cite above is wrong too because it does not count all property taxes from every level.

[DrewsDad]

The Victoria Independent School District dropped its rate 12.5 cents for each $100 of property value.

The property tax cut would save the $40K home owner $50, the $80K home owner $100, and the $1 million home owner $1,250 next year. The cut will be even more the year after from what you would have paid. Without the tax cut, your rate will be about 30% higher over the next 3 years.

Perry also tried to get a 3% appraisal cap through the legislature, but even a more modest 5% cap failed to get the votes. Blame those legislators and your local boards for your higher rates.

[Hendrix]

Also, Victora is a small town with lower property tax rates. Lets talke about the big city rates which are much higher.

[fhlh]

Governor Goodhair and the Texas legislature deceives again!

[Hendrix]

Here is a more typical tax rate in Texas from the Houston area:

0.35950 Brazoria County
0.060000 Road & Bridge
1.809200 Pearland ISD
0.696000 City of Pearland
0.800000 Brazoria County MUD #19
0.14282 Brazoria Drainage #4

Total Estimated Taxes per $100 of Value
3.86752

On a $200,000 home, you will pay $7,735 per year or $644.58 per month (I left out the homestead exemption, but it does not help that much). The sales tax is not low here either (around 8%). The bad news is that, because of the high rates applied to the appreciating home values, your taxes go up a lot each and every year forever--no end in sight.

[Hendrix]

I forgot to point out, the tax table above is for all levels of tax, which adds up to a rate of 3.86752. The list is just the break down of each level or tax or taxing authority accessed.

[Beagle8U]

"On a $200,000 home, you will pay $7,735 per year or $644.58 per month (I left out the homestead exemption, but it does not help that much)."

Michigan is a high tax state, my home is valued over that 200k, you are paying 3x what I pay here!

[bradactor]

This is the reason I just skipped over the governor and lt. governor when I voted yesterday. I voted for the rest of the candidates who were republican. Because of this property tax issue, I could not justify voting for either the governor or lt. governor. I think they will get elected anyway because many people are still going to vote straight republican but I just couldn't.
Brad in Houston

[The_Victor]

Michigan is a high tax state, my home is valued over that 200k, you are paying 3x what I pay here!

Texas has no state income tax. Add your income tax to that bill and compare again

[UNGN]

"On a $200,000 home, you will pay $7,735 per year or $644.58 per month (I left out the homestead exemption, but it does not help that much)."

Michigan is a high tax state, my home is valued over that 200k, you are paying 3x what I pay here!

We don't have a state income tax and what does it cost to register a car in Michigan? More than $40?

[Beagle8U]

Income tax is 4.3%, sales tax is 6%, car tags are about $100.

The average person would pay $2500? income tax, and that can be deducted on your fed tax forms.

No sales tax on food or medicine, and many other things.

[TheBattman]

And you are surprised why?

Old trick - lower tax rate, but increase the base on which the tax is based.

[The_Victor]

The average person would pay $2500? income tax, and that can be deducted on your fed tax forms.

So, $2500 in income tax, 1/3x$7700 for a total ~$5100.

My property tax bill on my home and an additional lot with a total value of ~$230,000 is ~$5000. Seems pretty comparable.