United. REALTORS

 

- Property Taxes in Texas -

301 Goldridge - 2010 Assessed value = $465,300, Tax Rate = 1.88%,  Estimated Tax = $8,709, Actual Tax = $8515 - Homestead exemption

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 The State of Texas has no state income tax so the primary source of funding for our public schools is through real estate property taxes. 

Home values are determined by the county assessor annually. The actual tax is calculated using the the assessed home value mulitplied by the tax rate.  The 2011 tax rate for a home in the Georgetown City Limits and in the Georgetown School District is 2.13% of the assessed value. The tax rate will vary depending the property location and the specific taxing entities within that location. For this scenario the taxing entities breakdown is as follows:

• City of Georgetown = .36%
• Williamson County - .45%
• Williamson County road tax = .03%
• Georgetown ISD (school district) = 1.29%
• Total Tax Rate - 2.13%

A typical home that has been assessed at $200K would have an estimated property tax of ($200K X 2.13%) = $4,260.00 annually

 

274 Buck Bend - 2010 Assessed value = $365,726, Tax Rate = 1.8%, Estimated Tax = $6583, Actual Tax = $6,389, Homestead Exemption

Exemptions

An exemption removes part of the value of your property from taxation and thus lowers your tax bill. For example, if your home is valued at $50,000 and you qualify for a $15,000 exemption, you pay taxes on your home as if it were worth only $35,000. Several opportunities exist to reduce your property tax through exemptions. Below are a few:

Homestead Exemption

 To qualify for a general homestead exemption, you must own your home on January 1. Your homestead can be a separate structure, condominium or mobile home located on leased land, as long as you own the home itself. Your homestead includes your house and the land used as your yard, not to exceed 20 acres.

If you have more than one house, you can receive exemptions only for your main or principal residence. You must live in this home on January 1. A person may not receive a homestead exemption for more than one residence homestead in the same year. 

Note: Texas has two distinct laws for designating a homestead. The Texas Tax Code offers homeowners a way to apply for homestead exemptions to reduce local property taxes. The Texas Property Code allows homeowners to designate their homesteads to protect them from a forced sale to satisfy creditors. This law doesn’t, however, protect homeowners from tax foreclosure sales of their homes for delinquent taxes.

There are several types of Homestead exemptions available:

1. School taxes: All residence homestead owners may receive a $15,000 homestead exemption from their home's value for school taxes.
2. County taxes: If a county collects a special tax for farm-to-market roads or flood control, a residence homestead owner may receive a $3,000 exemption for this tax.

Senior Exemption - Over 65 

 Over-65 homestead owners may qualify for a $10,000 homestead exemption for school taxes, in addition to the $15,000 exemption for all homeowners. In addition to the $10,000 exemption for school taxes, any taxing unit—including a school district—can offer an additional exemption of at least $3,000 for taxpayers aged 65 or older.

When you receive an over-65 homestead exemption, you also receive a “tax ceiling” for your total school taxes; that is, the school taxes on your home cannot increase as long as you own and live in that home. The tax ceiling is set at the amount you pay in the year that you qualify for the over-65 homeowner exemption. The school taxes on your home subsequently may fall below the ceiling, but cannot rise above it.

If you purchase another home anywhere in Texas, you may transfer the percentage of school tax paid based on your former home’s over-65 school tax ceiling to your new home.

Disabled Exemption

If disabled, you will qualify for a $10,000 exemption for school taxes similar to the Senior exemption above in addition to the $15,000 homestead exemption granted to homeowners. In addition, any taxing unit may offer an exemption of at least $3,000 off of home value to homeowners with disabilities. Disabled homeowners will also have a tax ceiling on their school taxes similar to that provided to over-65 homeowners. If the owner qualifies for both the $10,000 for over-65 homeowners and the $10,000 exemption for disabled homeowners, the owner must choose one or the other for school taxes. The owner cannot receive both exemptions.

  115 Dan Moody Trail - Assessed Value = $230,265, Tax Rate = 2.13%, Estimated Tax = $4,919, Actual Tax = $3,620, Homestead and Senior Exemptions

 

How to file for a general $15,000 homestead exemption?

You may file an Application for Residential Homestead Exemption with your appraisal district for the $15,000 homestead exemption up to one year after the taxes on the homestead are due. Once you receive the exemption, you do not need to reapply unless the chief appraiser sends you a new application. In that case, you must file the new application. If you should move or your qualification ends, you must inform the appraisal district in writing before the next May 1st. A list of appraisal district addresses and phone numbers is available online.

 How to apply for an additional $10,000 65 or older or disabled homestead exemption? 

You may apply to the appraisal district up to one year after the date you turn 65 or qualify for disability, or up to one year after the taxes are due, whichever is later. If your application is approved, you will receive the exemption for the entire year in which you turn 65 or become disabled and for subsequent years as long as you own a qualified homestead. Beginning in 2005, if your date of birth was on your original homestead application or other written correspondence to the appraisal district about your homestead you will automatically receive the 65 or older exemption without applying, if you are entitled to the general homestead exemption.

Additional Information

Below are links to several sites with additional Property Tax Information: Exemptions, Tax Rates, Q & A and more.

• Texas Comptroller: About Exemptions
• Tax Attorney Q & A
• State Senator: Age 65 Tax Ceiling
• Tax lawyer Q & A
• Williamson County Tax Appraisal District
• Travis County Tax Appraisal District
• Area Tax Rates
• Taxpayer rights, remedies and responsibilities

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For additional tax or property information contact

Bob Sedlor 512-517-8241, email Bob@sedlorProperties.com