Property Tax Question

[ColinR]

I’m hoping someone ion here can help me with a property tax question. We live in Comal county and have homestead exemption. Our assessed value is roughly $450k and our appraised value went up to $750k. I filed for a protest and it’s time for the hearing but after talking to someone at the county I have some questions. I’m sure I won’t get this exactly right but I’m hoping to get it close enough someone understands. They said there is a law in Texas that the county takes 20% of the appraised value and subtracts that from the assessed value and that is what I pay tax on. That part makes since because my taxes owed this year are less than what they were last year even though my value went up. Now the part I’m not sure of is I was also told my appraised value will automatically become my assessed value in 2 years if I don’t fight it. How can that be with the homestead exemption? I thought with the homestead my assessed value can go up no more than 10% each year. Also doesn’t the county reasses the appraised value every year so if the housing market goes down wouldn’t the appraised value go down as well?


With all that said I’m thinking I would actually hurt myself by protesting because there is no way I will be able to lower my appraised value, currently at $740, down to below the assessed value of $450. So if I protest it and get it down to say $650 I will then only get the 20% reduction based on $650 instead of $750. 20% of $650k is $130k vs 20% of $750 is $150 reduction.

[JayB]

Homestead property can only increase up to 10% per year in assessed value. Appraisal can increase how ever much but no hard rule that assessed value becomes appraised value in 2 years.

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[Txhunter3000]

Your tax bill should have a line item of Homestead Cap Loss and tax is the amount over the 10% threshold and what you won't be taxed on.

[Hoggslayer]

I’m hoping someone ion here can help me with a property tax question. We live in Comal county and have homestead exemption. Our assessed value is roughly $450k and our appraised value went up to $750k. I filed for a protest and it’s time for the hearing but after talking to someone at the county I have some questions. I’m sure I won’t get this exactly right but I’m hoping to get it close enough someone understands. They said there is a law in Texas that the county takes 20% of the appraised value and subtracts that from the assessed value and that is what I pay tax on. That part makes since because my taxes owed this year are less than what they were last year even though my value went up. Now the part I’m not sure of is I was also told my appraised value will automatically become my assessed value in 2 years if I don’t fight it. How can that be with the homestead exemption? I thought with the homestead my assessed value can go up no more than 10% each year. Also doesn’t the county reasses the appraised value every year so if the housing market goes down wouldn’t the appraised value go down as well?


With all that said I’m thinking I would actually hurt myself by protesting because there is no way I will be able to lower my appraised value, currently at $740, down to below the assessed value of $450. So if I protest it and get it down to say $650 I will then only get the 20% reduction based on $650 instead of $750. 20% of $650k is $130k vs 20% of $750 is $150 reduction.

You have market value which is the higher number. You can't protest that but your appraised value the $450K you should protest every year.

[ColinR]

You have market value which is the higher number. You can't protest that but your appraised value the $450K you should protest every year.

There is no way I’m getting my assessed value of $450 lower. I’m really going to be stretching it a lot to get the appraised value lower than $700. Places around us are selling for absolutely STUPID money.

[Huntindad]

There is no way I’m getting my assessed value of $450 lower. I’m really going to be stretching it a lot to get the appraised value lower than $700. Places around us are selling for absolutely STUPID money.

there's your answer... market value.

[BTLowry]

I thought the whole goal of protesting was to get the assessed value decreased since that is what you are being taxed on?

[Txhunter3000]

The assessed value can only increase 10% every year with a homestead exemption. With the upcoming economy I really don't think you have a thing to worry about.

[TKRanch]

If the appraised value goes from $100k to $400k and you have a homestead your assessed value can only go up 10% per year or $10k the first year, then $11k the second and then 10% again and again and again every year until it reaches the appraised value. Your decrease in tax bill this year may be due to decreased tax rate by the entities as some went down due to the increased valuations throughout the state and continued growth which allows for them to have the $ to meet budgets.

Please don't believe your appraised value can ONLY GO UP 10% with homestead, that is simply not true, it is 10% until it hits the high appraised value!!!

PROTEST EVERY YEAR!!!

[ColinR]

I thought the whole goal of protesting was to get the assessed value decreased since that is what you are being taxed on?

No your protesting the appraised value. Which in a normal year can also decrease your assessed value. However in my case where my appraised value is $300k more than my assessed value there is no way I’m getting my appraised value lower than my assessed value. So it looks like in this case with my homestead there is no reason to protest. It would actually hurt me because then the 20% deduction would be less because the 20% reduction is based on appraised value.

[ColinR]

If the appraised value goes from $100k to $400k and you have a homestead your assessed value can only go up 10% per year or $10k the first year, then $11k the second and then 10% again and again and again every year until it reaches the appraised value. Your decrease in tax bill this year may be due to decreased tax rate by the entities as some went down due to the increased valuations throughout the state and continued growth which allows for them to have the $ to meet budgets.

Please don't believe your appraised value can ONLY GO UP 10% with homestead, that is simply not true, it is 10% until it hits the high appraised value!!!

PROTEST EVERY YEAR!!!

Maybe I missed it but I don’t think anyone said that your appraised value can only go up 10% with homestead.

[Patton]

Note that homestead exemption is related to decreasing the portion of taxes owed for the school district (school district typically makes up about 50% of the overall tax rate).

Protest your taxes every year even if they don’t go up.

Like TKRanch mentioned, you’re assessed value will typically continue to go up 10% each year until you reach the appraised value; however it’s likely that the appraised value will be increased again before you even reach that. Always protest your taxes, hire a quality company if you don’t have time.

[Bradical BH]

Bottom line…. Homestead exemption caps what you owe in property taxes as a 10 percent increase over last years taxes due. Good luck. Their appraisals are pretty accurate, maybe even a little conservative given the market earlier in the year. I also live in comal and had a near 50% increase in appraised value. Taxes due went from $6000 to $6600 last year to this year. Ten percent cap.

[TeamAmerica]

Protest every year!

OP it will never hurt to protest. In your case it will likely not matter but there are plenty of companies that do it on contigent fees. You don't pay if they don't reduce your tax bill.