Tag Archives: homestead exemption

Protesting Your Property Taxes

Hello Austin area residents/home owners!

Earlier this week I sent out an email to all my past clients about disputing their property taxes.I decided to go ahead and post the same note on the blog, given that, it’s some really helpful information.

protesting taxes scales

Option 1:

Log onto our website and if you don’t have an account, create one. From there, try to search your neighborhood by name or better, draw a polygon on the map of your area and homes similar to yours. If you have already verified your email on our site you should be able to see accurate SOLD pricing. If not, click the link next to the sold box on the status tab to “unlock sold pricing.”

From there, you will hopefully gain enough evidence that when you are arguing your value you can write in the box your counter offer and explain why. (ie other similar homes sold for $__ and are much newer/larger/in better condition etc) If your home has any sort of defects the county says those are big items they take into account, so compare it to others.

As an FYI–they ask you to submit evidence after you hit submit on the counter, however I have discovered they will counter back your offer before you have submitted any evidence, so do not feel the need to do that as soon as you submit your counter.

Option 2:

If your appraised value went up, you might consider hiring a professional like Texas ProtaxFive Stone Tax or O’Connor Associates to help you protest your taxes. They only charge a percentage of the money you save and are experts at dealing with the County Tax Assessors.

{My friend works for Five Stone Tax and she did say if they don’t end up saving you money, it will cost you nothing (so you have nothing to lose by giving this a shot)!}

Option 3:

If you would prefer to protest your taxes on your own, you can use our Home Valuation Tool to get a rough estimate of your home’s current market value using this tool as well and recent nearby sales.  

Reach out if you would like help finding recent sales to support your tax protest hearing. Don’t delay, as the deadline to file your tax protest electronically is May 24th, and May 31st if filing by paper.

**Also,if you purchased last year and taxes are above what you actually paid–you can show your closing statement to get the assessed value down to purchase price, however, remember– Tx is a non-disclosure state so you do NOT have to show what you paid for your home**

And if this is your primary residence, don’t forget to file your homestead exemption!

Hope you found this little post helpful and best of luck!

 

Ashley Brinkman

2017 broker signature

Filing Your Homestead Exemption: Austin, Tx and surrounding areas

Did you buy a home last year?

Do you want a tax break?

Good, here is what you need to do to get that tax break…

First-write down on your “to do” list: File Homestead Exemption

Secondly, actually take about 10 minutes to do it.

Isn’t it funny how the most mundane tasks get put off and shoved to the side? When you put that stamp and send it in (or fill it out online) you think, “oh that really wasn’t so bad, afterall, why did I wait so long to do it?” {still on my to do list by the way}

So, my Austin area peeps:

Below are the links to information on how to download the necessary forms to claim your exemption-based on what county you purchased your home in:

  • Travis County 
    Mailing Address: P.O. BOX 149012, Austin, TX 78714-9012
  • Williamson County or File Online
    Mailing Address: 625 FM 1460, Georgetown, TX 78626-8050
  • Hays County
    Mailing Address: 21001 IH 35 North, Kyle, Texas 78640
  • Bastrop County or Call 512-303-1930 ext. 22
    Mailing Address: P.O. Box 578, Bastrop, TX 78602
  • Burnet County
    Mailing Address: P.O. Box 908, Burnet, TX 78611-0908
  • Llano County
    Mailing Address: 103 E. Sandstone St., Llano, Texas 78643

As Austin and surrounding areas home pricing increases, so will taxes. Typically (yet not always) your tax value is a bit behind your actual appraised value of your home.

**Remember your tax value and assessed home value by your lender are two different things. And as some say– You want the taxing authority to think you live in a shack and your loan provider to think you live in a mansion (wink, wink)**

So at the start of the year, by April 1, you need to have your homestead exemption filed if you are currently living in the home you purchased the year prior.

EVALUATION PHASE:

Jan-late March is the evaluation phase. Around April you will get a letter in the mail with your tax appraised value if:

  • the appraised value of the property is greater than it was in the preceding year $1,000 or more;
  • the appraised value of the property is greater than the value rendered by the property owner; or
  • the property was not on the appraisal roll in the preceding year

EQUALIZATION PHASE: 

April through July for the most part–

After you get the letter in the mail, you may protest your taxes.

If you paid less for your home than what the taxing authorities are saying it is worth, it is fairly easy to get your taxes reduced by showing them your final closing statement.

**However!! Fun Fact: Texas is a Non-disclosure state! So let’s say after you close on your home you get a piece of paper in the mail, it looks official and it asks, “What did you pay for your home?” send this back in to us…You, as a Texas Resident do NOT have to report what you paid for the home.**

There are two hearings to arguing your taxes-an informal and a formal. Basically if you don’t get your way in the informal (which you can send in the piece of paper- ON TIME), you can request a formal. You present your comparable sold properties and explain your case as to why you should not be taxed as much as you were. (This is where I come in! As your/a realtor, I can try to help you find homes similar to yours and what they sold for to help your case).

DISCOVERY PHASE

And finally August through the end of the year is the discovery phase for the following year.

After the inquiry/protest season concludes, the appraisal process transitions to the data collection and analysis phase. During this time, appraisers may be seen throughout the County in neighborhoods and commercial areas as they are measuring new residential or commercial construction, reviewing and updating characteristics of existing construction and/or land parcels, and reviewing, updating, or adding inventory of present or new businesses. Yearly updated aerial imagery, digital field devices for data collection, and GIS analysis tools are utilized to assist in staff efficiency, and ensure proper valuations and equitable results during the assigned/limited time for this phase. This process requires collection and analysis of three types of data:

General data, which affect values on national, state/regional, or neighborhood levels.
Specific data, about the site and improvements of a property.
Comparative data, which regards recent sales, cost, and income information for similar properties.

If this is still all over your head, this chart may help explain and is where I got most the information above from (along with past experience): Here is a great Tax Calendar visual to explain.

When your tax bill comes due, depending how your loan is set up will depend on how you pay it. If your money is with an escrow account–meaning you make a payment to your lender that covers: PITI–> principal, interest, taxes,  (home owner’s) insurance. If the value of your home goes up, so will your payment, as your lender will try to “pad” your escrow account so you don’t end up owing more when your bill comes due. Some home loans allow you to make your payment online–and choose if you want to pay extra and if it goes toward your escrow account or principle, which is nice. Or if you don’t have an escrow account (not required for those who put down more than 20%) you can manage your taxes yourself and pay the bill as it comes due.

Hope some of that information helps and if any additional questions, feel free to drop me a line.

AshleyBrinkman@realtyaustin.com

As always, thanks for reading!