As Ben Franklin so famously remarked in 1789 “…but in this world nothing can be said to be certain, except death and taxes.” Unfortunately this year our tax valuations may be causing too many heart attacks. So let’s talk about it, then reach out to me with any other questions or concerns you have.
So the highest number you see on your 2022 Notice of Appraised Value is your Total Market Value. You pay taxes on your Total Assessed Value which should be a lower number if you have your property homesteaded as your primary residence. From what I am seeing this year it is very doubtful you will be able to protest your home below your Total Assessed Value, so here are my recommendations:
- Confirm Your Exemptions. Make sure you have all the exemptions you qualify for – it’s the last line in the lined section of your notice. HS will show if you are homesteaded. Also, if you or your spouse are Over 65, disabled or a disabled vet, make sure you have those noted. If you don’t and need to add them, reach out to us and we will help – it’s a free filing for you.
- Do the math. Add up your 2022 Estimated Taxes column on your notice* and divide by 12. This is how much you should be saving monthly to cover your tax bill. If you escrow your tax payment with your mortgage, pull out your mortgage statement and compare to how much you are currently paying. *Don’t forget to include your MUD or PID district tax if it’s not included on your notice.
- Get out and Vote! There are 2 propositions on the May ballot that will save you and the elderly and disabled on property taxes. A “yes” vote on Proposition 1 supports amending the state constitution to authorize the state legislature to reduce the property tax limit for school maintenance and operations taxes imposed on the homesteads of elderly or disabled residents to reflect any tax rate reduction enacted by law from the preceding tax year. A “yes” vote on Proposition 2 supports increasing the homestead exemption for school district property taxes from $25,000 to $40,000. Both of these propositions passed the Texas House and Texas Senate unanimously and will save homeowners on property taxes.
- Hire a tax agent. A few years ago I felt I had a slam dunk case of value for my mom’s home in McKinney. We went to the arbitration, and I was so frustrated with the mumbo-jumbo circle talk that the appraisal district employees were using as they did not listen to my arguments with solid evidence. One of the homes I was using to show a much lower rate in the neighborhood had a tax agent and their value was significantly lower than anyone else in the neighborhood. So we hired them. You only pay a tax agent if they save you money on your taxes. So far we have not paid them, but we know that our values are being watched carefully by someone that speaks the same language and understands the ways the appraisal district works. If they begin winning tax appraisal values, you can always choose to take protesting back into your hands to do it yourself; but until then they will monitor values annually. We use O’Connor and Associates; but there are other agencies with varying rates available. There is a local appraiser that I highly respect that also has an agency, PropertyTax.io; they are slightly less fee than O’Connor’s percentage rate as well as have multiple options from a $75 flat rate to a percentage rate. If they can get your home below your Total Appraised Value this year they will be worth every penny!
- Keep records and note repairs. Even if you hire a tax agent you can still provide photos and repair estimates for them to use to fight your value. Estimates weigh more heavily so have a contractor give you estimates to make repairs like exterior painting, pool repairs, foundation repairs, etc… to go along with your photos.
- Check your insurance. Make sure based on the assessment of your home confirm with your insurance agent that you have enough coverage – many companies have automatic increases to keep up; but it’s a good time to double-check.
- Keep Watch. Tax rates are determined every year by the various entities in the fall. Last year most entities in the north DFW area reduced their tax rates so if you figure your taxes on this year’s values to ensure you are saving enough to cover taxes you should be safe.
- Talk to us. We are here and always happy to pull comparables or discuss all things real estate and taxes with you. If you still wish to fight your Total Market Value even though it won’t change what you pay in taxes, then let us know and we will provide information. If you have some home projects and think you might want to use your new value for a Home Equity Line of Credit or refinance, we can provide information. If you would happily sell your home for your Total Market Value let’s talk about it and I’ll show you the true numbers for what’s happening in your neighborhood and area so we can see if selling now is the right choice for you.
Remember that knowledge and experience are not expensive, they are priceless! That along with great service is why you should choose to work with The Marr Team – we are here for you as your trusted resource.