price of land

[cowboydoc]

Glueguy,
So you're saying that they can't raise the assessed value either?

 

[jinman]

In Texas, we have several taxing entities: cities, counties, and independent school districts. At times there may be other “districts” established (district = taxing authority). For example, in Dallas County we have the Dallas County Community College District which taxes to support about 8 campuses. The school districts are always the highest (sometimes oppressive, in my opinion). In many/most places the taxing districts have become centralized so that you only have one appraiser and get one bill which includes all taxes. In addition, sales tax rates can be as high as 8.25%. While all this sounds pretty severe, we do not have state or city income taxes and I don’t want them. At least the taxing authorities we have are elected locally and the taxpayers can revolt by voting them out (not that it really ever happens, but it could).

JimI

 

[GlueGuy]

<font color=blue>So you're saying that they can't raise the assessed value either?</font color=blue>

Nope. The way prop 13 works is that the assessed value is "fixed" at 1% of the purchase price. The assessed value is allowed to increase with inflation, but not more than 2% per year maximum.

For example. If you buy a property for $100,000. That becomes the assessed value. Tax is $1,000 per year. If inflation is high, then the next year it can go up to $1020 (2% increase), and so on.

There are other provisions for properties that are inherited and so on. Many times (but not always) changes can grandfather the tax rate to a new owner (like the inheritance that I mentioned). If you improve the property, they are allowed to only add the "delta" from what it was, to what it becomes.

The GlueGuy

 

[patrickg]

Bought 160 acres (quarter section) in '98 for 112k. Was cotton farming area until about 50 yrs back or so. Dirt quality is mostly fair to poor for crops but does pretty well for grasses, clover, etc. Very little surface rock, couple areas of sandstone on surface mostly it is down 10 ft or so. Good well, rural water coming within a year, 10 stocked fishing ponds of various sizes (largest are worthy of a canoe). Plenty evidence of deer, turkey, bobcat, coyote, racoon, o'possum, and armadillo on the increase. Many native pecan, plum, black berry, persimon. Grazing 22 head of beef, could carry more but...with vararies of weather don't want to get caught long on cows and short on graze.
I think I paid a bit over the median price, land wise but place came with 5000+ sqft metal covered pole barn (steel pipe), a 70x35 ft 20 ft tall shop with 2 ton jib crane with electric chain hoist, 12in steel reinforced slab floor, and two 14x14 ft rollup overhead doors. Wondering (dreading) what they will do to me when my mom's new house, just fiished - not moved in yet is added to assessment. Then next year when my new home is built the tax man will probably have a field day.