4 ms·

> For the most part, property taxes are not a fixed percentage the way that, say, sales taxes are. The rate floats, and that is important. Maybe this is common

> For the most part, property taxes are not a fixed percentage the way that, say, sales taxes are. The rate floats, and that is important. Maybe this is common in Canada, but it's definitely not common around where I live. Tax rates stay somewhat fixed, property values go up and down. Every now and then a county or city government will lower the rate when they're flush wish cash, but it's not a given. For the most part every time my property value increases I'll be paying more.

mitthrowaway2 3y ago
Good to know! I hope you at least get good services back in exchange for those windfall tax dollars when there's a paper property valuation boom.
- vel0city 3y ago
  There are some things that attempt to blunt and provide relief for exploding property valuations. There's a concept of a homestead exemption which 1) reduces the valuation of your home by a fixed amount (which was potentially recently increased) and 2) caps the amount of taxable increase by 10% each year. But with #2, your assessed value does go up, the difference between that 10% and its actual assessed value is shown as a cap loss which you then whittle away in future years as it marches up 10% until it hits the current valuation. This homestead exemption can only be claimed on an individual's primary residence. And as mentioned, some governments have already passed tax relief in the form of cutting some rates. But not after getting a few years of these windfall tax rates. I don't completely mind; I think the city I live in has some pretty good city services overall. I get a lot of enjoyment from the public parks, library, bike trails, and more. I just lament the fact this is probably just an additional cost that'll keep marching along going higher and higher outpacing inflation overall. https://www.texastribune.org/2023/07/27/texas-property-tax-cuts-explained/ https://www.texastribune.org/2023/07/27/texas-property-tax-c...

mitthrowaway2 3y ago

Good to know! I hope you at least get good services back in exchange for those windfall tax dollars when there's a paper property valuation boom.

vel0city 3y ago
There are some things that attempt to blunt and provide relief for exploding property valuations. There's a concept of a homestead exemption which 1) reduces the valuation of your home by a fixed amount (which was potentially recently increased) and 2) caps the amount of taxable increase by 10% each year. But with #2, your assessed value does go up, the difference between that 10% and its actual assessed value is shown as a cap loss which you then whittle away in future years as it marches up 10% until it hits the current valuation. This homestead exemption can only be claimed on an individual's primary residence. And as mentioned, some governments have already passed tax relief in the form of cutting some rates. But not after getting a few years of these windfall tax rates. I don't completely mind; I think the city I live in has some pretty good city services overall. I get a lot of enjoyment from the public parks, library, bike trails, and more. I just lament the fact this is probably just an additional cost that'll keep marching along going higher and higher outpacing inflation overall. https://www.texastribune.org/2023/07/27/texas-property-tax-cuts-explained/ https://www.texastribune.org/2023/07/27/texas-property-tax-c...