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Today, business owners are angry about increasing property values and they are choosing to fight back in larger numbers than  EVER BEFORE . While the programs our property tax dollars pay for are important, no one wants to pay more property taxes than they legally owe. So, the questions you need to ask yourself are:  Is your property equally assessed?  Are you paying higher property taxes than your neighbors? Can you spend your money better than the government can? HOW ARE THE TAXES CALCULATED? Commercial property taxes are calculated by the appraisal districts based on the market value.  State law requires the appraisal district to determine the market value of each property as of January 1.  Of course, market values change with the rise and fall of the economy.  Home values are higher when the local economy is stronger and trend down when the economy slumps. Have you experienced a reduction in your property taxes when the economy slows down?...

Some of the  top  real estate professionals weigh in on what trends they expect in 2020, courtesy of the Houston Business Journal! Houston remains one of the most affordable large cities in the country. MULTIFAMILY TRENDS The population and job growth remain  healthy , so the multifamily sector is expected to stay strong, at least in the short term. Demand still appears to be outpacing supply overall, but be aware that Houston has a history of overbuilding, especially when the market is strong. Renting has become an attractive long-term option for everyone, from millennials to baby boomers, and everyone desires a place to call home for which they can be proud of. Because of this, more apartments are being constructed with eye-catching building designs and curb appeal. MIXED USE TRENDS There’s  more interest  in the mixed-use opportunity where you can buy a bigger tract of land and you can get your basics down. If we can master plan a bigger tract, th...

If you don’t know yet, it is possible for voters to petition to  reduce the tax rate  in Texas. This normally happens when the increase has passed the limit stated by the law. TAX RATE LIMIT As of now, the threshold is 8%. But after the Reformed Property Tax Code of Texas, it has now decreased to 3.5%. This is a different number from what Texas Governor Greg Abbott wants. He first supported the 2.5% threshold. Yet, the 3.5% cap is still a great help for taxpayers. It won’t significantly lower the property tax they have to pay. But it will slow its growth, and they can ultimately save some money. The new limit to the tax rate will take effect in 2020. WHAT HAPPENS IF TAXING UNITS GO BEYOND THE THRESHOLD? It’s not impossible for taxing units to go beyond the proposed 3.5% threshold. In fact, it’s rather common. That’s why the law was made to help the public. Even before the Reformed Property Tax Code, voters can petition an election. This tackles the increase...

As if there aren’t already enough factors to consider when organizing a home improvement project, don’t forget to add property tax assessments to the list. Property tax is a real estate tax paid by the owner of the property and is based on the home’s assessed value. Property tax characteristics vary by state, but generally speaking, remodels and renovations will increase the value of a home and subsequently result in an increase in property taxes. So, if you’re looking to make any home improvement updates, take into account the following guide to prevent a substantial spike in your property tax bill. AVOID EXTENSIVE RENOVATIONS Most renovations will subject a home to a reassessment since they are adding value to the home. While there is no precise list of taxable home improvements, some are more likely to trigger a reassessment than others. By and large, the most standard projects known to do so are: Improvements which add square footage to a home, such as adding a deck Any ...

Homeownership is one of the  biggest financial commitments  most Americans will make in their lives. Owning a home is not only part of the traditional “American dream,” it also can be a smart investment, as real estate prices tend to go up over time. In order to sell your home for a substantial profit, however, you have to protect your investment so that it will remain marketable. Taking preventative measures to maintain your real estate on a regular basis will keep it looking and functioning properly, and can also potentially spare you unnecessary maintenance or repair costs. Follow these tips for safeguarding your house against weather-related damage. CHECK FOR INTERIOR LEAKS AND SCHEDULE AN EXTERIOR CLEANING AFTER RAINSTORMS After a rainstorm, check for indications of leaks such as water stains and mold growth. If you see  such signs , don’t delay calling a repairman. The problem will only get worse if you don’t fix it, and could result in more expensive damage t...

Texas may not be the most expensive city to live in. In fact, Texas real estate rather has very high demand nowadays. We owe this to the millennials who are looking to invest in their own  real estate properties . But Texas lately had problems with their property tax. Some states like the state of California do have higher income and sales taxes. However Texas still has a higher property tax compared to California. That’s because California is protected by a law that limits the annual tax rate increase. Currently, California only allows up to a 2% increase based on the value of the property. Meanwhile in Texas, property appraisals  have reached 10% . ANNUAL INCREASE LIMIT The current cap for the annual increase is 8%. If a taxing unit raises more than 8% of the property tax revenue of the previous year, voters can file a petition. This election can help roll back the increase. But there are some taxing units such as community colleges that levy property taxes. Th...

Budgets are important to keep a town, city, state, or nation progressive. Places that have higher tax rates are expected to have a better way of life. But who creates these budgets? Do taxpayers have a say on the budget created by governing bodies? Does the  Reformed Property Code  of Texas change the way the Adoption of Budget goes? ADOPTION OF BUDGET Adoption of Budget is the formal process where a governing body approves a budget. Besides cities and states, businesses also adopt a budget. This is to ensure they can maintain their facilities and services. For example, the state of Texas has a budget meant for building and maintaining public infrastructure. But where do they get the money? The government’s budget comes from us, the taxpayers. It comes from the annual tax we pay—from property, income, and product taxes. The governing body of the state of Texas has a formal process to come up with the budget. This happens every year and is done at a certain po...