Unlocking Texas Property Taxes: Insights from a Tax Expert

The Texas Real Estate & Finance Podcast with Mike Mills

If you're feeling the burden of unexpected property tax increases, then you are not alone! Many homeowners face the surprise of hefty tax bills that skyrocket their monthly expenses, especially around tax season. It's a common story, but understanding property tax regulations can prevent this from happening to you.

In this episode of the Texas Real Estate & Finance Podcast, Dr. Blake Bennett, an associate professor and economist at Texas A&M University's AgriLife Extension, shares valuable insights into the complexities of property taxes in Texas. Dr. Bennett's personal experience of being caught off guard by a substantial tax increase in the second year of homeownership highlights the importance of understanding property tax implications for first-time homebuyers. He emphasizes the necessity for proactive financial planning to prepare for potential spikes in property taxes and provides practical advice on navigating the intricacies of the tax system. His expertise sheds light on the impact of new exemptions, the dynamics of the real estate market, and the implications for homeowners, lending, and local communities. If you're a first-time homebuyer seeking to grasp the nuances of property taxes and make informed financial decisions, Dr. Bennett's insights and practical advice make this episode a must-listen.

Key Takeaways:

1. Understanding Texas Property Taxes:

Delving into the complexities of Texas property taxes can uncover significant savings opportunities for homeowners and realtors. This episode with Dr. Blake Bennett offers a comprehensive overview, highlighting the importance of being proactive about tax assessments and exemptions. Learn how property values are determined and the critical deadlines to keep in mind for appeals.

2. The Power of Homestead Exemptions:

Homestead exemptions not only reduce the taxable value of your home but also play a pivotal role in managing your property taxes effectively. Dr. Bennett explains the nuances of these exemptions, including who qualifies, how to apply, and the long-term benefits they offer, especially for those over 65 or with disabilities.

3. Challenging Your Property Valuation:

Many homeowners accept their property tax assessments without question. Yet, as Dr. Bennett outlines, challenging your valuation can lead to significant savings. This episode provides a step-by-step guide on preparing for your appeal, what evidence to gather, and how to present your case to the appraisal review board.

4. Over-65 Tax Freeze and Transfers:

A crucial benefit for Texas seniors is the over-65 tax freeze, which locks in the property tax amount, preventing increases as property values rise. Dr. Bennett discusses how to apply this freeze and the potential to transfer a percentage of your tax savings when moving to a new residence within Texas, underscoring a strategic approach to retirement planning.

5. Legislative Changes Impacting Property Taxes:

Recent legislative reforms in Texas have introduced changes to property tax laws, affecting homeowners and the real estate market at large. This episode covers the most significant reforms, how they impact your tax bill, and what to anticipate in future legislative sessions. Dr. Bennett emphasizes the importance of staying informed to navigate these changes effectively.

Time Stamped Summary:

00:00 - 02:00 Introduction to the episode with Mike Mills, highlighting the focus on Texas Property Taxes and the challenges homeowners face during tax season.

02:01 - 04:00 Introduction of Dr. Blake Bennett, an associate professor and economist at Texas A&M, with a brief overview of his expertise in Texas property taxes.

04:01 - 06:00 Discussion begins on the complexities of Texas property taxes and the common misconceptions homeowners and realtors have about them.

06:01 - 08:00 Dr. Bennett explains the foundation of property tax in Texas, including how property values are assessed and the impact of market fluctuations.

08:01 - 10:00 The importance of homestead exemptions for Texas homeowners, how they work, and tips on ensuring you're taking full advantage.

10:01 - 12:00 Dr. Bennett dives into the Over-65 Tax Freeze, detailing how seniors can benefit from this exemption and the process of applying for it.

12:01 - 14:00 The conversation shifts to challenging property valuations, with Dr. Bennett providing insights on when and how to dispute your property's assessed value.

14:01 - 16:00 Strategies for effectively arguing your property tax assessment, including what evidence to bring and how to present your case to the appraisal district.

16:01 - 18:00 Exploring the implications of recent legislative changes on Texas property taxes and what homeowners need to be aware of.

18:01 - 20:00 Dr. Bennett discusses the process of transferring your tax exemption when moving within Texas, a lesser-known strategy for homeowners.

20:01 - 22:00 The role of property taxes in Texas education funding and the audit process appraisal districts undergo to ensure fairness in valuations.

22:01 - 24:00 Addressing the challenge of rising property taxes in Texas and potential long-term solutions to mitigate the burden on homeowners.

24:01 - 26:00 Q&A session begins, with listeners submitting questions on property taxes, exemptions, and how to prepare for tax season.

26:01 - 28:00 Dr. Bennett shares his top tips for realtors on educating clients about property taxes and ensuring they're factored into home buying decisions.

28:01 - 30:00 The economic forecast for Texas property values and how this will impact future property taxes.

30:01 - 32:00 Wrapping up the discussion, Mike Mills and Dr. Bennett recap the key points covered in the episode and offer final advice for navigating Texas property taxes.

32:01 - 34:00 Closing remarks and how listeners can stay informed about Texas property taxes, including resources and where to find more information.

34:01 - 36:00 Mike Mills talks about the importance of engagement from the audience, asking for likes, comments, and shares to help spread the valuable information shared in the episode.

Dr. Blake Bennett, an associate professor and economist at Texas A&M's AgriLife Extension, brings a unique flair to the world of property taxes. With a knack for breaking down complex tax concepts into bite-sized and digestible pieces, Dr. Bennett has been educating and assisting real estate professionals across Texas for over 7 years. His engaging approach and practical insights make navigating property tax implications an enlightening experience.