Question about property taxes, what effects how much I have to pay?
Posted by Anonymous in: TaxesI have visited our city's website which explains how property taxes are assessed and its taxable value. I have looked into public property tax records and my neighbors pay $1000 less than I do. Why is it that we live in the same neighborhood with similar houses and everyone pays less than I do? I live in Texas
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The appraised home value for a homeowner who qualifies his or her homestead for exemptions in the preceding and current year may not increase more than 10 percent.
The appraisal district must repeat its appraisal process for property at least once every three years.
To save time and money, the appraisal district uses mass appraisal to appraise large numbers of properties. In a mass appraisal, the district first collects detailed descriptions of each taxable property in the district. It then classifies properties according to a variety of factors, such as size, use and construction type. Using data from recent property sales, the district appraises the value of typical properties in each class. Taking into account differences such as age or location, the district uses "typical" property values to appraise all the properties in each class. The appraisal district may use three common methods to value property: the market, income and cost approaches.
The market approach is most often used and simply asks, "What are properties similar to this property selling for?" The value of your home is an estimate of the price your home would sell for on Jan. 1. The appraisal district compares your home to similar homes that have sold recently and determines your home's value.
Other methods are used to appraise types of properties that don't often sell, such as utility companies and oil leases. The income approach asks, "What would an investor pay in anticipation of future income from the property?" The cost approach asks, "How much would it cost to replace the property with one of equal utility?"
Source: www.window.state.tx.us
You are correct, your property should be appraised based upon other property values. I would contact your county's appraiser and have it reappraised. Note, this information is for the state of Texas, each state differs. Check out your local state's site for more information.
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Posted 1 year ago by Brian Robertson (view professional profile)
