Property Taxes
Its TRUE … if you compare Spring Texas property taxes to other states they are higher. But WHY are they higher? Because Texas has NO state income tax. Thus we pay for our schools, roads, infrastructure, and social services through our property taxes.
Our real estate taxes have three components…..
1) County tax – The County for homes located in Spring Texas is either Harris County or Montgomery County. The county, county flood control, port of houston authority, county hospital district, county education department, junior college district – Lone Star college system, county emergency service district – fire, and the county emergency service – ambulance equal the total county tax. The 2007 tax rate for Harris County is $0.840233 and for Montgomery County it is $0.7538. The rates are for every $100 of assessed property value.
2) School District tax- Tax assessed by the school district that the property is located in. Homes located in Spring Texas are going to be in either the Conroe school district, the Klein school district, or the Spring school district. The 2007 tax rate for the Conroe school district is $1.24 and for the Klein school district it is $1.26 and for the Spring school district it is $1.44. All rates are for every $100 of assessed property value.
3) MUD (Municipal Utility District) tax- MUDs are the political entities which provide water and sewer services to the majority of residential and commercial property owners who do not receive those services from the City of Houston. The MUD tax rates range from $0.00 to $1.40 per every $100 of assessed value. Some of our older subdivisions that were developed in the late 1970s do not have a MUD tax because the bonds have been repaid.
The total combined tax rate of 1) County + 2) School District + 3) MUD = $2.10 to $3.68 per $100 of assessed value. The average combined tax rate in the Spring Texas area is $2.90. For a home with an assessed value of $150,000, the property tax burden before homestead, over 65, or disability exemption would range from $3,150 to $5,520 a year. The school district and the MUD taxes combined represent 50% to 80% of the total property tax burden.
All of the tax rates for the current tax year are released around the October / November time frame. Thus we currently only know the 2007 tax rate.
One more thing on the subject of real estate taxes is you may qualify for a homestead exemption that will REDUCE your total tax bill.
Below is additional information on our property taxes, how to qualify and receive tax exemptions, how to protest your taxes, and whether real estate taxes will be increasing or decreasing.
What’s the value of the over 65 exemption?
February 19th, 2010 categories: Property Taxes
Are you going to be turning 65 soon? If so, you are probably already aware that you are eligible for Medicare. But did you know you will be eligible for a reduction in your Spring Texas real estate taxes? That’s right another reason to get excited about turning 65.
Unlike the homestead exemption that comes with restrictions on when you can apply for and receive it, the over 65 exemption has only one restriction and that is you have to wait until you reach the age of 65.
What you really want to know is what’s the value of the over 65 exemption? How much will your Spring Texas real estate taxes reduce? I dig numbers and I don’t know any better way to show you the money than through the use of a spreadsheet / chart. Click on the chart to get a larger image and a better view.
Since the over 65 exemption varies based upon county (Harris County is $160,000 and Montgomery County is $35,000), school district (Klein School District is $23,330 and Spring School District is $30,000), and MUD, I had to use some assumptions to calculate the savings in real estate taxes.
The assumptions used were:
- House is located in Harris County, Klein School District, and MUD 104
- Tax assessed value of property is $165,000
Based upon these assumptions, your annual real estate taxes for your Spring Texas home with no exemptions is $4,532.
Qualifying and receiving the homestead exemption, will reduce your taxes to $4,114. A savings of $418.
Qualifying and receiving the homestead exemption and the over 65 exemption, will reduce your taxes to $2,712. A combined savings of $1,820 or a 40% reduction in your real estate taxes. Dependent upon the county you reside in, you will either need to fill out and the over 65 exemption form for Harris County or the over 65 exemption form for Montgomery County.
Plus the over 65 exemption, freezes the school tax portion of your real estate taxes. The school tax portion will not increase with rate increases in the school tax nor with increases in the value of your Spring Texas home. But it will increase if you make substantial improvements to your home through the addition of a pool or another room.
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The easiest way to save money on your real estate taxes
January 4th, 2010 categories: Property Taxes
I originally posted this on January 5th of 2009. The information has not changed and filing for a homestead exemption is still the easiest way to save money on your real estate taxes which is why I am reposting it.
These days we are all looking for ways to save money whether it be on our grocery bill or our real estate tax bill. The easiest way to save money on your Spring Texas real estate taxes is by filing for the general homestead exemption.
And it is as easy as cutting coupons out of the Sunday newspaper. The big advantage filing for the homestead exemption is …. you only have to file for it once to receive the money saving benefit of it year after year.
But beware and do not fall for the marketing scam that is prevalent during filing season. Because you do not have to pay a filing fee of $35 to $50 in order to receive a general homestead exemption on your home. You can file for the homestead exemption yourself. The form is only a single page and the instructions are easily understandable. And if you need help filing out the form, give us a call. We will be happy to help for free.
What do you have to do to qualify for the general homestead exemption?
In order to qualify for the homestead exemption, you have to meet three simple requirements: 1) You must own your home on January 1st of the tax year and 2) You must use the home as your primary residence and 3) you or your spouse have not claimed a general homestead exemption on another home.
So how much money do you save on your Spring Texas real estate taxes with a general homestead exemption?
The general homestead exemption will reduce the tax assessed value of your home by
- 20% of the Harris county portion or 0% of the Montgomery county portion because Montgomery county does not offer a homestead exemption. If you live in Montgomery county you still want to file for a homestead exemption because you are still eligible for a reduction in the school distrtict portion of your real estate taxes and the MUD portion if your MUD offers a homestead exemption.
- a minimum of $15,000 for the school district portion. Conroe, Klein, and Spring school districts all provide the state mandated minimum of the $15,000 reduction in the tax assessed value of your home.
- And potentially up to 20% of the MUD portion. Only some and NOT all MUDs offer a general homestead exemption.
Are there any oh by the ways …. that you should know about?
Yes. There are two things to remember: 1) You do NOT automatically receive the general homestead exemption just because you meet the qualifications and own a home. To receive the exemption you MUST file for it. If you do not file, you will not receive the exemption and 2) You can ONLY file for the general homestead exemption between January 1st and April 30th of the tax year.
So if filing and receiving the general homestead exemption is so easy, why do only 50% of Houstonians that qualify for the exemption receive it? That’s a real good question. And I believe the answer is because homeowners either a) thought they automatically receive the exemption or b) thought they filed for the exemption when they closed on their home or c) just do not know the homestead exemption exists.
The form you need to complete and mail can be located by clicking on this link for Harris county general homestead exemption or this link for the Montgomery county general homestead exemption.
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Who has lower real estate taxes Montgomery County or Harris County?
July 6th, 2009 categories: Home Buyer Information, Property Taxes
If I was to do a telephone survey to Montgomery county homeowners to find out the answer to “Who has lower real estate taxes Montgomery county or Harris county?” I would predict 80% of the survey respondents would say Montgomery county. And they would be partially right.
Partially right because Montgomery county real estate taxes are lower than Harris county real estate taxes if you DO NOT take into consideration the 20% residential homestead exemption available to Harris county homeowners.
Montgomery county on the other hand does not offer its homeowners a residential homestead exemption.
Maybe the question should be reworded to ”Who has lower real estate taxes 
Montgomery county or Harris county after the homestead exemption?”
The answer and bragging rights would go to Harris county. After the homestead exemption the difference between the two counties real estate taxes is a minuscule difference. A difference not significant enough to base an entire home purchase decision on but a difference none the less.
There are lots of things to base your home purchase decision on such as commute time to work, community amenities, school district, floor plan, and overall tax rate. As a homebuyer don’t limit your home search to only homes in Montgomery county because a co-worker told you Montgomery county real estate taxes are less. Although your co-worker had good intentions, he was only partially right.
If you click on the charts, you will receive a larger more eye friendly version of the charts.
Read also:
- How to file for the homestead exemption and reduce your Spring Texas real estate taxes
- Why are Texas real estate taxes so high?
The Harris County real estate taxes chart is for homes located in the Windrose subdivision while the Montgomery County real estate taxes chart is for homes located in the Spring Trails subdivision.
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How to dispute your Spring Texas Property Tax Values
April 23rd, 2009 categories: Property Taxes
By now your Spring Texas property tax notice from the Harris County Appraisal District (HCAD) should have arrived in your mailbox. If you have not received your valuation yet the odds are in your favor that your property value will either decrease or remain the same as 2008.
According to HCAD, 45% of the residential properties in Harris County received a decrease in their property valuations for 2009. While 39% of the residential property values remained the same and a mere 16% of the homes received an increased in their valuation.
This year the property value of our Spring Texas home was apprasied for the same value as last year and even though the valuation remained the same it does not automatically mean that I won’t dispute the valuation.
How to dispute your Spring Texas property tax value:
1. Determine if your property’s tax valuation accurately reflects the market value of your home as of January 1, 2009. How do you determine if your value is accurate?
Contact a Spring Texas Real Estate Agent and ask her to provide you with the sales price of homes in your neighborhood. If homes are selling for more than the market value of your home, don’t dispute your valuation based on market value.
But before you decide not to dispute your valuation, determine if your property value is unequal compared with other properties. According to O’Conner & Associates, a property tax advisor, the majority of successful property tax disputes are those based upon unequal assessment.
How do you determine if your property’s tax value has been unequaled assessed? Go to HCAD and look up the tax assessed value of your neighbor’s home. Is their home similar to yours but their home is being assessed at a lower property valuation? If the answer is yes, then protest your Spring Texas property valuation based upon unequal assessment.
2. Determine if you want to dispute the value yourself or if you want to solicit the help of a property tax advisor.
3. If you decide to dispute the property valuation yourself, you can file your protest online at the Harris County Appraisal District’s website. HCAD will notify you of the date and time your protest has been scheduled. On the day of your appointment, you should arrive on time, be armed with data to present that supports your valuation, and be friendly to the assessor.
4. If you decide to solicit the help of a property tax advisor, you can contact either O’Conner & Associates or Bettencourt Tax Advisors. O’Conner & Associates and Bettencourt both require you to sign a service agreement.
O’Conner & Associates (www.cutmytaxes.com) is currently offering a $50 Shell Gift Card if they are unsuccessful in reducing your property tax valuation. If O’Conner & Associates is successful in reducing your property tax valuation, they charge you 50% of the tax savings. For example, if your property’s tax valuation is $150,000 and O’Conner & Associates was successful in reducing your property’s tax valuation to $140,000 their fee is $10,000 * your tax rate. If your tax rate is 3.0%, their fee would be $10,000 * 3.0% *50% equaling $150.00.
Bettencourt Tax Advisors (www.paulbettencourt.com) is a property tax consultant firm formed by Paul Bettencourt. Paul Bettencourt was the Harris County Tax Assessor-Collector for many years before resigning in 2008. Their firm’s fee is 40% of the tax savings. If they are unsuccessful in reducing your real estate taxes, they will charge you their minimum fee of $75.00
You have until June 1 or 30 days after the date your property tax notice was mailed whichever was later to protest your property tax valuation. If you decide to dispute your property tax valuation, Good Luck and remember you never get anything unless you try.
If you have individual tactics you have found to be useful in disputing your Spring Texas property tax values, please post a comment for all to learn from.
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How to save money on your real estate taxes
January 5th, 2009 categories: Property Taxes
These days we are all looking for ways to save money whether it be on our grocery bill or our real estate tax bill. The easiest way to save money on your Spring Texas real estate taxes is by filing for the general homestead exemption.
And it is as easy as cutting coupons out of the Sunday newspaper. The big advantage filing for the homestead exemption is …. you only have to file for it once to receive the money saving benefit of it year after year.
But beware and do not fall for the marketing scam that is prevalent during filing season. Because you do not have to pay a filing fee of $35 to $50 in order to receive a general homestead exemption on your home. You can file for the homestead exemption yourself. The form is only a single page and the instructions are easily understandable. And if you need help filing out the form, give us a call. We will be happy to help for free.
What do you have to do to qualify for the general homestead exemption?
In order to qualify for the homestead exemption, you have to meet three simple requirements: 1) You must own your home on January 1st of the tax year and 2) You must use the home as your primary residence and 3) you or your spouse have not claimed a general homestead exemption on another home.
So how much money do you save on your Spring Texas real estate taxes with a general homestead exemption?
The general homestead exemption will reduce the tax assessed value of your home by
- 20% of the Harris county portion or 0% of the Montgomery county portion because Montgomery county does not offer a homestead exemption. If you live in Montgomery county you still want to file for a homestead exemption because you are still eligible for a reduction in the school distrtict portion of your real estate taxes and the MUD portion if your MUD offers a homestead exemption.
- a minimum of $15,000 for the school district portion. Conroe, Klein, and Spring school districts all provide the state mandated minimum of the $15,000 reduction in the tax assessed value of your home.
- And potentially up to 20% of the MUD portion. Only some and NOT all MUDs offer a general homestead exemption.
Are there any oh by the ways …. that you should know about?
Yes. There are two things to remember: 1) You do NOT automatically receive the general homestead exemption just because you meet the qualifications and own a home. You MUST file for the exemption. If you do not file, you will not receive the exemption and 2) You must file for the general homestead exemption between January 1st and April 30th of the tax year.
So if filing and receiving the general homestead exemption is so easy, why do only 50% of Houstonians that qualify for the exemption receive it? That’s a real good question. And I believe the answer is because homeowners either a) thought they automatically receive the exemption or b) thought they filed for the exemption when they closed on their home or c) just do not know the homestead exemption exists.
The form you need to complete and mail can be located by clicking on this link for Harris county general homestead exemption or this link for the Montgomery county general homestead exemption.
Read also:
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Spring Texas Property Taxes – the bills are in the mail
November 24th, 2008 categories: Property Taxes
Its that time of the year, again. The time of year I dread going to my mailbox because I know any day now lurking inside I will find the bills for my Spring Texas Property Taxes.
In Spring Texas, we have three taxing entities the MUD (Muncipal Utility District), the school district which can either be Conroe, Klein, or Spring, and the County which can either be Harris or Montgomery.
In my case, my MUD is MUD #104, the school district is Klein school district, and the county is Harris County. Each taxing authority sends out its own property tax bill. Receiving three separate bills instead of one combined property tax bill makes me feel like my property taxes are a just a wee bit smaller.
So far I have received my 2008 property tax bill from MUD #104 and the Klein school district. The Harris County property tax bill has not found its way to my mailbox yet.
Since I was an Accountant before I was ever a Realtor, I am a stickler for the details. So when my Spring Texas property tax bills arrive, I carefully review each bill for the following:
- Does the taxable amount/appraised value equal the amount the HCAD (Harris County Appraisal District) assessor and I agreed was the taxable value of my home.
- Do the bills reflect the homestead exemption that I qualified for and applied for? My MUD does not offer a homestead exemption. But the Klein school district offers a homestead exemption of $15,000 off the assessed value. While Harris County offers a homestead exemption of 20% off the assessed value of my home.
- What is the tax rate for the year? Did it go up or down? How is it trending? The Klein School District tax rate went up $0.05 per $100 of assessed value for 2008. I was expecting the increase because the Klein school distrct bond was passed. Over the last five years the rate went down approximately 23% which was due to the school property tax reform. The MUD #104 tax decreased by $0.07 per $100 of assessed value. Over the last five years the rate has decreased 21%.
- How will the tax rate increases or decreases affect my escrow balances? Whether you set up an escrow account or not is a matter of personal choice. I personally like the comfort of knowing that each month included in my payment is an estimated amount for my property taxes. Based upon the increases and decreases in my property tax rates and the appraised value of my home, I will not need to set an additional amount aside to cover a shortage in my escrow account.
If you have any questions about Spring Texas property taxes or homestead exemptions, give me a call at 281.804.8626. I am more than happy to answer your questions because I know our Spring Texas real estate taxes are frequently misunderstood.
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Texas ranks #8 lowest state in state-local tax burden
August 21st, 2008 categories: Home Buyer Information, Property Taxes
There is no denying that our real estate taxes in Spring Texas are higher than in other states. But you shouldn’t ONLY take into consideration real estate taxes when considering whether its affordable to live in Spring Texas.
For 18 consecutive years the nonpartisan Tax Foundation has published an estimate of the combined state-local burden of each of the 50 states. And they have just released the State and Local tax burden estimates for 2008 and our big state of Texas came in as the 8th lowest state in state-local tax burden. And this rating of being in the top 10 lowest states in state-local tax burden is not a flux. We have enjoyed this ranking for the last four years.
We, Texans, pay 8.4 percent of our income in state and local taxes, compared to New Jersey at 11.8 percent, New York at 11.7 percent, Connecticut at 11.1 percent and Maryland at 10.8 percent. What’s the national average? The national average state-local tax burden is 9.7 percent.
Would you be able to guess what state enjoys the lowest state-local tax burden? If you guessed, Alaska, you would be correct. Alaska’s state-local tax burden is 6.4 percent. The other states with a lower state-local tax burden than Texas are Nevada, Wyoming, Florida, New Hampshire, South Dakota, and Tennessee. Coming in at #10 is Louisiana with a state-local tax burden of 8.4%.
Just one more reason why we live in Spring Texas. Read our Top 20 reasons to call Spring Texas home. Did you hear the news that Spring Texas homes are #14 for affordability?
If you are thinking about relocating to Spring Texas, please give us a call at 281.300.3141 or 281.804.8626. We will be happy to help you find the right house to call “home” in Spring Texas.
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Spring Texas real estate taxes to increase
May 15th, 2008 categories: Property Taxes
The residents of Spring Texas have spoken and what they have said is “We want quality education”. On May 10th, the residents of Klein School District voted on a $647 million school bond. The bond PASSED with 52% 
of the votes. Every vote counts as the bond passed by a narrow margin of only 300 votes.
The passing of the bond translates into Spring Texas real estate taxes increasing by 20 cents over the next four years. Twenty cents doesn’t sound like much. But with the median price of Spring Texas homes being $150,000, that mere 20 cents turns into a $300 dollar annual increase in real estate taxes.
Read also: Texas Property Taxes why are they so HIGH?
What do you get for $647 million? Amongst other things an almost complete rebuild of Klein High School and the construction of seven new Klein schools.
Klein residents were not alone in being asked to have their real estate taxes increased in order to support school growth. Residents of Humble school district and Conroe school district amongst others were asked to support school bonds.
Voters passed the Humble and Conroe school district bond requests. Humble home owners real estate taxes will increase 8 cents to pay for a $245 million bond to build three new schools and to buy land for future campuses. Conroe home owners real estate taxes will increase 10 cents to pay for a $527 million bond package to build seven new schools and major additions and renovations to existing campuses.
Read also: How are the schools in Spring Texas
Begin your search of Spring Texas homes for sale
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Spring TX real estate taxes to increase if school bond passes
March 25th, 2008 categories: Property Taxes, Schools
One of the bad things about growth is that sooner or later we are going to have to pay for its impact on our infrastructure. And pay we do, usually in the form of increased taxes. Over the last four years, our Klein school district has experienced growth. Growth of more than 16% or 6,000 students. Thus the need for another school bond election. If it passes, its projected to increase real estate taxes for Spring Texas homeowners by $0.20.
If you are like thinking, it wasn’t that long ago since Klein school district had their last bond election. You are right. Their last bond election was in 2004 for $224 million. It was projected to increase real estate taxes by $0.26 but luckily only reached $0.22. If you are not familiar with the components of our Texas property taxes, read Texas Property Taxes Why are they so HIGH?
What exactly is a school bond and why do we need it?
A school bond which is sometimes called a municipal bond is a document that obligates the school district to repay borrowed money on a given maturity date and to pay interest semi-annually at a rate set at the date of sale to the bondholder.
The Klein school district needs a school bond to fund its capital improvements to support the projected increase in its student population. The 2008 bond plan includes $345.9 million for growth, $256.7 million for renovations, $38.2 million for technology, and $6.1 million for safety/security for a total of $646.9 million.
The funds earmarked for growth will provide for the construction of three elementary schools, one Early Learning Pre-K Center, two intermediate schools, one high school, and classroom additions for both Klein Oak High School and Klein Collins High School.
On May 10th, Spring Texas residents in the Klein Independent School District will cast their vote in the Klein ISD bond election. If the bond passes, real estate taxes will increase by $0.20 over the next four years.
A small consolation is that due to the recent school property tax reform, the projected increase in our school property tax rate will still be LOWER than it was in the 2005 – 2006 school years.
But its not just Klein school district with a bond election. Residents in the Conroe and Humble school districts will also be voting on a bond election on May 10th.
The Conroe school district is seeking approval of a $527 million dollar bond that includes the construction of seven new schools and major additions and renovations to existing campuses. New campuses are needed to house the projected increase of 23,000 students in the next decade. The bond is projected to increase the real estate taxes of Conroe school district home owners by $0.10.
The Humble school district is seeking approval for a $245 million dollar bond that includes the construction of three new schools, the purchase of land for future campuses, an overhaul of the district’s football stadium, and a new police station. The projected impact on the pocket books of Humble school district homeowners is $0.08.
Read also:
- Klein school district experiences 16% growth
- UPDATED – Bonds Pass – Spring Texas real estate taxes to increase
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Spring TX Real Estate: 2008 Protest Deadlines CHANGE
March 6th, 2008 categories: Property Taxes
In previous years, we typically would receive the notice of appraisal value of Spring Texas homes in April. We would have until May 31st or 30 days after the date the appraisal district sent the notice whichever is later to protest the value. But for 2008, the dates have changed.
You now have until April 30th or 30 days after the date the appraisal district sent the notice whichever is later to protest. The new protest deadlines are due to the passing of a new law that changed the dates.
To muddle the waters a little further, homeowners can still file a protest without penalty until the old deadline of May 31st.
The entire process of protesting HCAD’s appraised value of your home can feel overwhelming and intimidating. I know I felt that way the first time I protested our valuation. But remember, it is your constitutional right to have equal and fair taxation. So don’t let the bureaucratic process intimidate you.
Now here’s a couple of quick tips on how to reduce your Spring Texas real estate tax liability:
1) Make sure your tax account reflects all exemptions that you have applied for. If it does not immediately contact the Harris County Appraisal District at 713.957.7800. The available exemptions are general homestead, over 65, disability, and over 55 surviving spouse.
2) If you purchased your home in 2007 and HCAD has the appraised value higher than your sales price, you should without hesitation protest the value. Just dig out your HUD-1, the closing statement, from the stack of documents you received at closing and bring it with you to your scheduled protest hearing. Based upon your HUD-1, the HCAD representative will immediately reduce the appraised value of your Spring Texas home to your sales price.
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