Frequently Asked Questions
- How are my taxes calculated?
- So, if you lower my Market Value enough to lower my Appraised Value, how will that affect my tax liability?
- What is the best way to save money, over time?
- It’s January 22, and my taxes are due January 31st , but my property tax protest is still pending. Do I need to pay my tax bill?
- I overpaid my taxes, last year. What do I do?
- My mortgage company escrows my taxes. Will they automatically change my mortgage payment to reflect my reduced tax liability?
How are my taxes calculated?
The Tax Rates of the various Taxing Entities are added together, resulting in your Combined Tax Rate. That Combined Tax Rate is then multiplied by your Appraised Value, less exemptions (i.e. your Taxable Value), to determine your Tax Liability.
For example, if your Combined Tax Rate equals 2.24% and your Appraised Value is $303,146, your Tax Liability is $6,790.47, less exemptions.
So, if you lower my Market Value enough to lower my Appraised Value, how will that affect my tax liability?
The further you can reduce your Appraised Value, the less you will pay in taxes. For example:
- Appraised Value = $400,000
- Combined Tax Rate = 2.24%
- Tax Liability = $8,960.00
Versus:
- Appraised Value = $345,000
- Combined Tax Rate = 2.24%
- Tax Liability = $7,748.00
SAVINGS = $1,212!
What is the best way to save money, over time?
I advise that you file a Property Tax Protest every year, regardless of whether or not you received a Value Notice and regardless of whether or not your value was increased. It is important to keep your Market Value and Appraised Value as close to the same amount as possible every year and regular protesting can accomplish this.
The only way to affect your Tax Liability is to ensure that, on any given year, you can successfully reduce your Market Value to an amount below your Appraised Value. For example, it would be extremely difficult to affect your Tax Liability if your Market Value is $400,000 and your Appraised Value is $250,000. You would have to obtain at least a $150,001 reduction at your Property Tax Protest hearing in order to reduce your Tax Liability.
It’s January 22, and my taxes are due January 31st , but my property tax protest is still pending. Do I need to pay my tax bill?
Yes. Taxes are due when they are due. You risk being charged penalties and interest, which can be near impossible to remove, if you do not pay the amounts you owe on time, even if it is later determined that you owe a lesser amount.
If your Property Tax Protest is successful and your Tax Liability is reduced, the tax office will automatically issue you a refund for your overpayment amount.
I overpaid my taxes, last year. What do I do?
If you overpaid your taxes, the tax office should automatically issue you a refund in the amount of the overpayment. Call the tax office to ensure they are processing it.
My mortgage company escrows my taxes. Will they automatically change my mortgage payment to reflect my reduced tax liability?
The portion of your mortgage payment that goes into escrow for Property Taxes is based on an estimate of your Tax Liability. If a reduction is obtained and you need help having your payment recalculated with your mortgage company, please contact me, and I’ll help you with the process.
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This is not intended to be legal advice or a substitute for legal advice, nor is it intended to deter you from contacting the Firm with your questions. If you have questions, do not hesitate to reach out!
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