Regardless of whether you're a homeowner or renter, the recent increase in property taxes across the city and county will have an impact on your monthly expenses.
Through the years, I've seen this many times over as a real estate professional and personally as an Austin homeowner. Earlier this week, our team attended a seminar on property taxes and news surrounding recent tax valuations lead by a leading Austin lender I know well. They brought in Home Tax Shield to help answer questions that are floating around out there and below is a recap of the most crucial and relevant points... but the main take away for you is... PROTEST your value whether on your own or with the help of a professional.
Here is a link to some frequent questions about protesting.
The last day to file a protest is May 16th
If you E-file yourself, and then decide to hire a company to assist, they will not be able to jump in and help (once you file the protest individually then you have to go through the process on your own).
Key Take Aways
Example: Current home has homestead. I buy it after values came out in 2022. Taxable value is $500K, appraised value is $750K ~ a $250K in homestead cap. Did you say the foundation value for the 10% cap actually starts in 2022 and NOT 2023?
The foundation value would be $750K based on 2022 value (removing the 10% homestead cap), which is why it's super important to protest that value this year.
2. What if I fight my value, can the county increase the amount they set?
No, fighting your value will not hurt you and they can’t increase your value (law change years back that stopped that from happening).
3. How many people fight their value each year?
Less than 20% of Texans fight their value.
4. Why fight my value if I have a homestead cap?
Let’s say last years value was $500K and this year the value came in at $900K. You have the homestead cap so the taxable value is only $550K now. IF you do not fight the $900K, you now have given the county 5 years where they can use an automatic 10% increase in taxable value each year.
5. Does it matter when I file my homestead exemption after I close? -- you should file the homestead as soon as you move into the home. It is prorated in the year you purchased, so it could save you some money to file it immediately. Make sure to change your driver’s license to the subject property.
Here are a few recommendations you can reach out to for assistance. I would call today because we are hearing some companies are starting to limit the number of clients due to high demand of their services!
Deadlines and links for online protest form:
May 16th - Travis County - Form Here