Texas: Walker County: Huntsville: "Property Taxes for Non-Experts"

The KEY to Understanding Property Taxes. or "Property Taxes for Non-Experts"  (Sorry, copyright issues with the "Dummies" one)

The key to understanding Property Taxes and Exemptions is "taking them apart" and putting them back together again.

For our purposes, we will cover the following:

• Tax Rates
• How they are assessed
• Exemptions
•       1. Homestead
•       2. Over 65
•       3. AG (Agricultural)
• How to save money by applying for the appropriate exemptions.
• Time frames to apply
• Tax Rates Inside and Outside the city limits
• Live Examples

Now, stay awake-- 

it's not so bad.  I am a musician, not great at math and I get it, so stay with me. You could save some hard earned cash.

TAX RATES INSIDE AND OUTSIDE THE CITY LIMITS:

Basically, in Walker County, the tax rate within the city limits is 2.34 and within the county (OUTSIDE the city limits), the tax rate is 1.94. 

Now, in English and I will answer the question--"How much will my taxes be?"

A property located within the city limits in Huntsville/Walker County with a tax value of $100,000 will have $2,340 tax due if there are no exemptions.  (We'll get to exemptions next) 

 And if the property were not within the city limits, the amount of tax due with no exemptions would be $1,940.

Where do "tax rates" and Babies come from.  (Okay, I will answer the former, not the latter--Just seeing if you are still awake) 

The 2.34 tax rate is made up of several taxing entities. In Huntsville/Walker County TX, they are as follows:

For a property outside of the city limits, the 1.94% rate is made up of everything above less the city portion of .40%.  And it looks like this:

 EXEMPTIONS:

What are "Exemptions," and how do they impact your "out of pocket" taxes.

 There are several types of exemptions. I will cover a few of them.  

1.  "Homestead" Exemption

2.  "Over 65" Exempton

3. "AG" (Agricultural) Exemption

1.  "Homestead" Exemption

This is the Exemption EVERYONE should have for their primary residence. 

Not everyone knows, however, that the Homestead Exemption needs to be applied for. 

It is granted for the applicable tax year if application is made on, or prior to April 30^th in Walker County.  May 1^st and later, the exemption will be granted for the following tax year.

What is the Homestead Exemption and how much money can I save on my Taxes?

The "Homestead Exemption" is granted to property owners for their claimed Primary Residence.  Only 1 (one) residence per property owner may qualify for a Homestead Exemption.

It reduces the taxable value by $15,000 for the ISD (or school tax) portion, which in Walker County is 1.21% which represents a little over half of the rate.

Here is an example of how the Homestead Exemption impacts the tax due. 

$15,000 x .0121 (1.21%) = 181.5

The Homestead Exemption in this county reduces the tax due by $181.50.   Every little bit helps.

 The tax valuation in this example is $208,900.00  Notice the valuation change from $208,900 to $193,900 for the ISD Portion. ( a difference of $15,000)

2. "OVER 65" EXEMPTION

The next Exemption we will cover is the "Over 65" Exemption.  Pretty self explanatory exemption.  This exemption must also be applied for in the same time frame as the Homestead Exemption.

This Exemption, however, is quite a bit more generous.  AND it can be used in conjunction with the Homestead Exemption.

It reduces the taxable value by $12,000 for the ALL taxing entities and an ADDITIONAL $16,000 for the ISD (or school tax) portion - and used in conjunction with the Homestead Exemption, it represents a total of $31,000 reduction in the assessment value.  

* Remember, in Walker County the ISD or School Tax is 1.21% which represents a little over half of the rate. 

Here is an example of how the "Over 65" Exemption impacts the tax due.  The Over 65 in this county reduces the tax due by $135.65 and used in conjunction with the Homestead Exemption in this county reduces the school tax due by $375.10.   That's a total of $510.70 !  And again, every little bit helps.

The tax valuation in this example is $180,690.00.  Notice the $12,000 reduction in valuation for all taxing entities and an additional $31,000 reduction for the ISD Portion (the $16,000 "over 65" and $15,000 "Homestead).

Roll Value History

Tax Due 

 3. AG (Agricultural Exemption)

This is an exemption for land used for cattle or farming purposes. This Exemption is the MOST generous of them all.

It reduces the taxable value for both the land and the improvement (home).

For this type of exemption in Walker County, for example, it is necessary to have a minimum of 10 acres PLUS an appropriate amount of land for the improvement (home). Generally about an addition ¾ acre.

Here is an example of how the AG Exemption for these purposes, impacts the tax due.  A parcel with a taxable value of $52,210 is reduced to tax due on a $9,770 value. That takes the tax due from $1012.87 to $189.54

"Holy Cow!"  (Might as well be for those savings!) 

Roll Value History

It can also be given for special types of native grasses or other special reason.  The property needs not be a minimum of 10 acres plus ¾ acre.  This example is a 5 acre tract.

So, stay with me.  Native Grass can save you a BUNDLE!  Who knew?!

Please note: Each county has a different definition of what is required to have an AG Exemption.  It is important to check with the Appraisal District for the most up to date information and definitions.

Here is an example of how the AG Exemption for these purposes, impacts the amount of tax due.  A parcel with a taxable value of $45,000 is reduced to tax due on a $500 value. That takes the tax due from $873 to $9.70.  Holy Native Grasses, Batman!

Here is a real, live example.  Notice how the value is $45,000 and is taxed at a $500 valuation.  THAT really helps, especially if you are buying land with the intention to build and still own another property.  This saves you BIG bucks when the tax bills come out.

Roll Value History

 So, I hope this clears up at least some questions about the Wild World of Property Taxes.  Especially in Texas it is important to understand.  We have some of the higher rates on property values---but NO STate Income Tax.  AND you get to live in TEXAS!  The most beautiful country in this country.  (Reference: The Republic of Texas 1836 to 1846 -- http://www.tsl.state.tx.us/treasures/republic/index.html )

So, knowing about Exemptions REALLY Pays off--In cold, hard cash.

If you have not already done so, APPLY FOR YOUR HOMESTEAD EXEMPTION Today!  

Find land with an AG exemption to enjoy country living as a get-away!

And if you are over 65, get your exemption!  You deserve it. 

Looking for a property or Want to SELL a property in Walker, Montgomery, Polk, Trinity or San Jacinto Counties, CALL ME!  I am YourSingingRealtor.com