{"id":1415,"date":"2021-05-19T11:00:31","date_gmt":"2021-05-19T15:00:31","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1415"},"modified":"2024-04-25T23:20:01","modified_gmt":"2024-04-26T03:20:01","slug":"do-it-yourself-stimulus-the-rise-of-the-property-tax-protests","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/do-it-yourself-stimulus-the-rise-of-the-property-tax-protests\/","title":{"rendered":"Do-It-Yourself Stimulus? The Rise of the Property Tax Protests"},"content":{"rendered":"\n
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For years running, Texans have been protesting their\nproperty taxes. This year (2021), Texas homeowners had until May to object to\ntheir county assessors\u2019 valuations of their homes. When they win their cases,\ntheir homes\u2019 market prices don\u2019t change. But their tax bills do.<\/p>\n\n\n\n

County procedures enable Texas homeowners to contest their\nproperty tax assessments. Some Texans now regard the process as a necessary savings\nstrategy in a challenging economy.<\/p>\n\n\n\n\n\n\n\n

Why Texans Notice Their Property Taxes<\/h2>\n\n\n\n

Texas has no income tax. For a lot of its revenue, the state\nrelies on property taxes. Texans are, therefore, especially sensitive to their\nproperty tax assessments. And they pay above-average rates.<\/p>\n\n\n\n

The average Texas household pays in the area of 1.69% or $6,000\na year. Homeowners can shave a decent amount off by protesting their\nassessments. In Dallas County, about half of the households that protest their\ntaxes do receive a break. On average, they win a tax reduction of $600.<\/p>\n\n\n\n

This year, hundreds of homeowners in Bexar and Wilson Counties are looking to cut their bills, too. They\u2019ve received government notices that their property appraisals went up<\/a> \u2014 enough to hike up their taxes. Owners in San Antonio, Lubbock and other cities are now in the process of contesting the assessments. Some say the small bands of appraisers employed by their counties can\u2019t possibly issue careful, individualized assessments for all of their homes. <\/p>\n\n\n\n

Real Estate Agents Join the Movement<\/h2>\n\n\n\n

Real estate agents support the protests by sharing comparable property values with residents. For an example, see Wilson County\u2019s Taxpayers Association Facebook page<\/a>. This support can be much more helpful than just sending people to Redfin, Zillow, and Realtor.com to look up comparable properties\u2019 prices. Local and active agents offer local knowledge, precision, their professional reputations, and their in-person guidance.<\/p>\n\n\n\n

In fact, specific information \u2014 whether by mail, social\nmedia, or seminars \u2014 plays a vital role in a successful tax protest surge.\nResearch done at the University of Texas found that a big reason people don\u2019t\nobject to their tax assessments involves the \u201chassle cost\u201d \u2014 the expected time\nand effort it will take to understand the process.<\/p>\n\n\n\n

Outside of the hassle cost, there\u2019s no protest fee. Yet learning\nhow to effectively submit objections does take time. Research shows that\nhomeowners need such resources as (a) step-by-step guidance through the\nsubmission process; and (b) example arguments that demonstrate to the\ngovernment why the tax assessment should be reduced.<\/p>\n\n\n\n

How Local Property Assessments Work<\/h2>\n\n\n\n

When searching for homes, buyers know to check the property\ntaxes \u2014 which could go up when a home is sold and reassessed. What is the\nformula? County assessors multiply their local tax rate by the property\u2019s\nvalue. The result is usually significantly lower than the full market value.\nYet tax rates vary widely by city or county across the nation. On average, property tax revenue<\/a> amounts to slightly more\nthan one percent of home values across the United States.  <\/p>\n\n\n\n

Most of us never question, let alone protest, our property\ntaxes. The bills are easily ignored, at least as long as a mortgage lasts.\nOwners simply make their mortgage payments every month by rote \u2014 often by\nsetting up an automatic bank debit on the mortgage servicer\u2019s website. The\nmortgage servicer typically pays the taxes out of the reserves in escrow. Of\ncourse, it\u2019s the owner who\u2019s continually topping off the escrow account. But\nwith the servicer sending the taxes to the county, an owner need not keep track\nof local taxes. Lenders prefer this arrangement, because it ensures that these\ntaxes are promptly and fully paid. <\/p>\n\n\n\n

\u261b The mortgage\nservicer is just one player on the stage of a mortgage loan. <\/em><\/strong>Learn\nmore: On\nStage and Behind the Scenes in a Mortgage<\/a>.<\/em><\/strong><\/p>\n\n\n\n

If an owner who\u2019s supposed to pays taxes directly forgets to\npay, the government\nrecords a lien on the home<\/a>. Ultimately, the home could even wind up\nin a city or county auction, enabling the government to collect the overdue\ndebt, interest and penalties.\ufeff <\/p>\n\n\n\n

How to Protest Your Own Property Taxes<\/h2>\n\n\n\n

Homes should be assessed individually. A county appraiser\nshould take into account any visible home\nimprovements<\/a> \u2014 additions, pools, accessory dwelling units, etc.\nYet the upgrades done on individual homes aren\u2019t the only triggers for new\ntax assessments. Sometimes, the county has a pressing need for revenue and\nmeets it by upping property taxes. <\/p>\n\n\n\n

But has the county gone too far, with respect to your own\nproperty value? It could be worthwhile to examine your home\u2019s assessment,\nparticularly if:<\/p>\n\n\n\n