From: "Eric Tonks" 
Newsgroups: misc.consumers.house
Subject: Re: Property taxes and Homestead Exemption in Texas -- Second year OUCH!
Date: Tue, 8 Jun 2004 14:57:25 -0400

Sounds like y'all got a good deal down there. Here in Ontario, Canada there
is no such thing as a property tax cap, and your house is re-evaluated every
second year. My appraisal jumped $124,000 from 2 years ago. I have appealed
but dread seeing the tax bill for this year.

"Alex"  wrote in message
news:2ba4b4eb.0405270814.c35efa5@posting.google.com...
> Hi all,
>
> I purchased my home in March 2003 (last year), and I had a rude
> awakening this year when I got my 2004 tax statement from the local
> Appraisal District.
>
> When I purchased the house, the tax district appraised it (plus
> property) at around $95,000 in 2003, but with the previous owner's
> homestead exemption the homestead cap was $80,000.  This saved me
> about $500 in 2003 for taxes since taxes were based on $80,000 instead
> of $95,000.
>
> Now 2004 rolls around and I get my tax statement... and the homestead
> cap was gone!  I called the appraisal district and they said since I
> moved in and refilled the homestead exemption under my name, that
> reset the homestead cap to current appraised value, which is $100,000
> (appraised value went up $5,000 this year).  So...  I'm taxed on the
> full $100,000.  OUCH!
>
> I wasn't familiar with the homestead exemption, and the lady at my
> county appraisal district was nice enough to tell me how it works.
> She said the homestead exemption creates a homestead cap, which is
> what your taxes are based on.  This cap can't go up more then 10% in
> any given year.  So if in 2004 your house is appraised at $100,000 and
> in 2005 they reappraise it at $120,000, your cap is $110,000 and
> that's what your taxes are based on.  In this scenario you basically
> get a $10,000 cut on your appraised value for taxes.
>
> This is what happened to my taxes in 2003... I was riding on the prior
> owner's homestead cap, but in 2004 it reset for me.
>
> So... is this something that happens to everyone?  If the prior owner
> lives in a house for 15 years, you buy it, and the taxes double or
> more... is this common?  Luckily mine only went up from $1400/year to
> $1900/year, or about $40/month... but I've heard of others having
> their house note double in year two due to this.
>
> I could contest the appraised value, but it's still under what I paid
> for the house, plus under what many houses go for in my area... so I
> figured I didn't have much of a leg to stand on.
>
> Anyone else ever been in this situation?  Just curious.
>
> Take care,
>
> Alex.