Texas homeowners reeling after property tax appraisals skyrocket

[Demovictory9]

COLLIN COUNTY (CBSDFW.COM) - Some new numbers are painting a clear picture of how hard North Texas homeowners are getting hit by skyrocketing property tax appraisals.

CBS 11 News has learned that Collin County expects a record of 100,000 homeowners to protest their appraisals. A county commissioner we spoke with says it's the smart thing to do if you need financial relief.

A broken sprinkler system outside his home in Lucas, Texas is the least of Marc Sherrin's concerns after opening the mail. Looking at his statement he said, "We owe $75,000 more than last year looks like. We're going to have to protest again."

Sherrin and his family live in a small Collin County town where the price of the average home is already steep -- at $600,000. But appraisals this year, like the one he received in the mail, are up more than 30% across-the-board which makes the median home value now more than $900,000.

"I'm just kind of at my wits end," Sherrin said. "I don't know what to do."

The cities of Prosper, McKinney, Frisco, and Celina are all reporting home appraisal values above 30%, according to new numbers recently provided to County County leaders.

https://www.msn.com/en-us/news/us/texas-homeowners-reeling-after-property-tax-appraisals-skyrocket/ar-AAWEIkc

[NJCher]

1. Awwww

And those darned republicans only let you deduct $10k.

[jimfields33]

7. They cap out property taxes at no more then 3 percent a year.

I like that. They need to pass something like that in their town.

[Igirl]

10. Who is they? The cap is 10% in Texas

with the remainder carried to the next year on a primary residence. Uncapped on a non primary( rental). A 30% increase will max you out for the next 3 years not counting increases added for those years as well.

Property taxes are very high in Texas. Around $9200 for a $400000 house.

[jimfields33]

12. I live in Florida. I guess I should have specified.

[Kingofalldems]

32. Well you can edit.

[Celerity]

2. In 2020 Trump won that county. Play stupid Trump games, win stupid Trump prizes.

[lindysalsagal]

33. I love DU

[TexasTowelie]

3. The price that people have to pay to live in a small town

serviced by six independent school districts and one private academy.

It's tough to feel sympathy for the increased taxes these people will pay when the median home price is approaching $1 million.

[greenjar_01]

17. Thye same thing is happening in Austin, though

[moonscape]

37. I have more sympathy because without

CA Prop 13 limiting increase, and my ability to take my 1993 tax base with me when I downsized to my current home, I’d be screwed. Am on a fixed income but bought within my means. Recent comps put me around a million also and no way could I afford those property taxes. Values skyrocketed everywhere and esp. here on the Central Coast. I would have to leave my home, region, friends, medical teams and life as nothing would be affordable. As a health-compromised Senior who lives alone, that would be beyond brutal.

[Aussie105]

4. Coming to your town real soon.

Here in Australia, house prices have been going up too.

Council rates are based on your home's estimated value.

Value of your home goes up, council reappraises it's value upwards, up go your council rates.

So you end up paying a lot more for your weekly rubbish collection, watering the local parks, etc.

Politically motivated or just opportunist? You decide.

Marc Sherrin in Collin county may be a Republican voter or not, it doesn't matter, everyone gets caught up in this.

[Ziggysmom]

5. Some day homes might only be owned by the rich and rented to us average folk.

I know that many people are very pleased with the fact that they are receiving the increased amount of money when they go to sell their homes. They don't think of the downside to the housing bubble.

[Buckeyeblue]

8. And selling your home for more means you'll probably pay more

for your next home. Things are really only worth what people will pay. Or can pay. Sounds like we are setting ourselves up for another mortgage/banking crisis.

[Igirl]

11. Not probably pay more. Rents will rocket

Property taxes are not capped on a rental home. My TX increase this year is 37%. Property taxes take the full increase for non primary.

[Buckeyeblue]

13. Same in Michigan

And farmers pay next to nothing. At least here they don't.

[mnhtnbb]

6. My niece and her family live in McKinney,

in a cookie cutter suburban house without "luxury" finishes. They have two little boys. I suspect they aren't prepared to handle having their property taxes go up 30%.

According to Zillow, their house is worth 43% more than what they paid for it in January 2019, but still valued under $500K.

[hatrack]

9. Sit back, relax and taste the Freedumb!

Hey, no state income tax, right? Yippeee!!!!

[inthewind21]

24. Bingo

The guise of "come to Texas, we have no state income tax" but, we'll totally rape you on your sales and property tax! Congrats to all who flocked to Texas because of the "cheap living" and politics. Enjoy!

[Johnny2X2X]

14. Migration

As professionals have more WFH options, they're moving to more affordable areas. While people in this town think $900K is average, the people moving there from Tech centers think $900K is a bargain and will pay that and above without blinking an eye. It's going to be good for local economies, but that's not really going to help homeowners.

Seeing this all over right now and it's not new at all. Even here on Michigan's West Coast we saw lakeshore homes go from affordable in the 60s and 70s to out of reach after people from Chicago decided buying a Summer home on Lake Michigan was the thing to do. Small cottages on the lake went from $50K to $400K rather quickly. And now anything decent sized is $750K+.

Boise Idaho has been absolutely hammered by this type of thing.

[tanyev]

15. It went up more than $75K? Does he live in a 4 million dollar home?

Yes, property values have gone up here, and our taxes did go up, but the property tax rate is still only 2.19%. The tax on our modest house went up about $1000.

[mnhtnbb]

18. I think the article is poorly written. I suspect he meant the valuation of his home went up $75K.

[BlueCheeseAgain]

29. Agreed. I wish more reporters knew math.

A quick calculation, or even common sense, would show that that couldn't be right, unless we're talking about a super-mansion.

[BlueCheeseAgain]

28. Not just a $4 million home, a home whose value increased by $4 million.

I'm guessing there was some miscommunication and that the house's valuation went up by $75K. Which means he'll owe an extra $1500 or so.

[tanyev]

30. There are multimillion dollar homes in Collin County.

I just don’t want to hear them whining about their tax problems to a reporter.

[JCMach1]

16. For reference the Southfork site from.the Dallas series is near Lucas

Lucas is incredibly expensive. Having said that, housing prices and the market in general are insane here.

The 3/2 1400 sq ft I rented for my parents just recently sold for 360K.

Insane

I would say 'reality' price is about 215K

[Demovictory9]

19. And 360k would be a bargain for a Californian moving to Tx

[haele]

23. However, the property tax on that home in California is half that in TX.

Waiting to see some "Taxbuster" pull a Prop 13 on Texas like they did in CA, hiding all sorts of carve-outs for businesses and "investment property" under the guise of saving Grannies from eviction due to tax liens.

Haele

[inthewind21]

25. Not true

[JCMach1]

34. That 360K is now a 'starter' house... We have lots of CA

Transplants here and they tend to replace their homes with mini-mansions around the same price of their tiny house in CA

So, they are buying 500K-1M+ homes and driving the market ever higher.

[Demovictory9]

35. in southern Calif. 360k will get a one bed one bath condo. so yeah, California go crazy

when they move to other states with their equity

[dalton99a]

20. Kick

[Amishman]

21. The question is what is the municipality doing with this windfall?

I would think the responsible thing to do would be to reduce the millage so that the total collected comes in around their budget total.

[DFW]

22. At least Texas has no state income tax

My sister and her husband live in New Jersey, which has an income tax, and one of the highest property taxes in the country. They pay over $15,000 a year property taxes, and their home didn't cost $500K, although I only know what they paid for it 20 years ago, not what it is assessed at now. At least her husband recently got a new job (finally! He is 59, and had been sucking wind for 2 years, living off of wisely socked away savings), and hopes it will carry him to retirement.

[inthewind21]

26. No, it does not

So lets see a 7% state income tax with a 1.6% property tax, or flee to Texas where you have no state income tax and 10% property tax that goes up every single year. Yeah. makes perfect sense. I was born and raised in Texas. They are getting the taxes. But just keep focusing on "at least there's no state income tax". And hey, how's all that tort reform working out in Texas, insurance there must be next to nothing now.

[DFW]

27. I'm not confronted with any of that, and don't keep up with it. You'd know the details more than I

I have been living in Germany for many years now.

But if my sister is paying $15000 a year property tax in NJ for their small house, it's a LOT more than 1.6%. Her house is not worth $937,000 by any stretch of the imagination.

[MissB]

31. Ours are capped at 3% a year unless significant upgrades are done

I live in a nice neighborhood and our home is very modest in comparison. Our house is 100 years old and has 3 bd/2 ba and a one car garage.

The neighbor next-door bought the property last year from someone that had lived there for 50 years. They're tearing the house down and building a very large one. Their garage will be 1500 sq feet, which is nearly 3/4 the square footage of my entire house. Needless to say, they'll be increasing their property tax rate because that's a significant "renovation".

My home occasionally "loses" value on the property tax statement. The land is often (not always) worth more than the home. It seems to bounce back and forth a bit, but in reality someone would pay over a million for my home and then tear it down, so it is truly the land value that is attractive to folks. Our state throttled the property tax growth rate many years ago, confining the rate to 3% a year. I can calculate the rate I'll pay each year, because it's not like the county is *not* going to increase it exactly 3%.

Even when we've had improvements done, our property tax doesn't increase over the standard 3%. I once had a visit from the property tax appraiser after we completed a project under permits. I opened my front door and waved my hand over my new entryway - all 36 square feet of it. It only had plywood for a floor at the time, so it looked extra special and unfinished. We redid a large playroom and made it a bedroom, basically switching places with an existing bedroom/creating a den in that room. Even though that required some serious reconfiguring of interior walls, the overall inspection schedule was pretty minor - mostly electrical and insulation with a bit of framing review. Still didn't bump up my rate. I think they just look at the house and say, oh, normal people not rich people and give us a bit of a pass.

[Demovictory9]

36. sounds like Calif with land more valuable than the building. 1500 garage...that's pretty big