Below is the transcript for this video.
Introduction
It's property tax time. Want to learn how to save on your property taxes in taxes? Well, you won't want to miss this one, even if you're not looking to buy or sell real estate in the near term. It's important to understand your property taxes, what kind of exemptions are available, and how to protest your taxes. So make sure you watch till the end because I don't want you to miss a thing.
Welcome to San Antonio Homes Insider, where you'll find real estate insider information that no one else is sharing with you. I'm Pam Roberts realtor and your local real estate expert. We help you by providing buyer tips and selling secrets for San Antonio and the surrounding area. I'm going to explain the difference between market value and assess value, what exemptions to put on your property if you don't already have them, what comps to use if you want to file a protest, and the timelines to do all of this, and some general things to keep in mind about property taxes. So there's lots of information here, but all important to know if you are a homeowner in Texas because there have been some changes to the laws in the last session.
What is Market Value?
So let's start with some definitions on your appraisal. Notice, yes, you probably got one of these in the mail, and so let's start with some definitions about your appraisal notice you're going to see some things called market value, and then another number for your assessed value. Market value is the value of the county appraisal district places on your property for the previous year. So you don't want to confuse this with the comparative market analysis that your agent can provide, which is a valuation of the proposed market value if you were to sell your home. So for the letter you're getting now, it means that your market value has been determined by the sales of all the properties since January of 2023 to December of 2023. Last year, we had some variations in pricing that were affected by mortgage rates. We also saw a major property tax reduction law that went into effect that helps reduce your property taxes dramatically. So the other definition to know is your assessed value. Your assessed value is the amount you are actually being taxed on.
Homestead Exemption
Now, if you have a homestead exemption on your property, then your market value and assess value are going to be different. So let's talk about homestead exemptions. You can now file your homestead exemption at any time as soon as you close on your property. It used to be that you could only file at the beginning of the following year after you moved in. The homestead exemption in Texas has two portions. The first is the exemption portion. This is the portion of the value that comes off your assist value before they apply the tax rate to it. So school districts in Texas are mandated to give a hundred thousand dollars exemption from the assessed value. That exemption was raised dramatically from 40,000 years before, thus saving you more money in taxes. In addition, different counties and taxes may offer exemptions and your tax rate varies from county to city.
Other Exemptions
On top of that, you can also apply for a 65 or older exemption, a disability exemption and a military veteran exemption. Those are the most common. The second portion of the homestead exemption is the homestead exemption cap. This is a limitation on the assessed value of 10% over the prior year. So if you were assessed at 400,000 last year, then you can only be taxed up to 440,000 this year. Now this cap does not apply unless you've been in the property for a full calendar year. Now, if you've moved during the year, you can prorate your exemption onto the property. This is a new rule from the last session that benefits those that have brought a home in the previous year. You can now file your homestead exemption after closing on your home immediately, and it doesn't cost any money to file this form. So if you've not yet filed your homestead exemption and you'd like to, the completed application and required documentation are due no later than April 30th of the tax year for which you're applying. You can even get a reimbursement for the past two years on property taxes by adding the homestead exemption. So it's not too late. I hope that you're enjoying this video and finding a lot of value. If so, don't forget to subscribe to our channel for more information about real estate in the San Antonio area. Also, if you have any comments, just leave them down below.
Protesting your Property Taxes
Now, let's talk about protesting your property taxes. Bexar County protests must be filed on or before May 15th or not later than the 30th day after the notice was mailed. The appraisal district has nine types of allowed protests and they are:
- Appraised Value
- Unequal appraisal of the owner's property
- Inclusion of the property on appraisal records
- Denial of a total or partial exemption
- Denial of agricultural open space or timber valuation
- Identification of the taxing units in which the property is taxable
- Determination of the ownership of the property
- Determination that a change of use of land has occurred as it relates to agricultural open space or timber valuation.
- Any other action of chief appraiser, appraisal district or appraisal review board that adversely affects the property owner.
Those are the nine different reasons you can protest when you're deciding to protest. You have to determine if the market value, the only value that you can protest would be less than the assessed value than you're being taxed on. If there are no comps or there's no evidence to prove that the market value should be less than the assessed value, it won't actually change your amount. So if you'd like to get comps to see if there are any sales from 2023 that would support a lower market value, I'm happy to provide those to you. Just comment tax info below. I'll reach out to you to get the needed information about your property so that I can give those accurate comps to you. Now, one of the questions that I get asked about a lot is how can there be such a wild swing among neighbors and just in values in general?
Non-Disclosure Explained
Well, Texas is a non-disclosure state, so that means when you bought your house, what you paid for, it's not a matter of public record, so the appraisal district does not actually have access to all of the sales data. This is especially true in new construction communities that are not even listed in the MLS system. So they actually do this when you move in and they see that there's a deed change and they will send you a letter in the mail asking you what you paid for your house. Now, you don't have to give them that information. What I would do is wait until next year to see if providing that information will actually lower your assessed value. If you'd like what you're hearing and you think you're ready to make a move to Texas, don't hesitate to reach out and set up a quick chat with me. Just get in touch with me by using the contact information listed below in the description. I'd be happy to help you buy, sell, invest, or just answer your questions about San Antonio in general. Thanks for watching and I'll catch up with you next time. Have a great day.
