Property tax question

[Coon]

My parents are 86 and 78 years old and have not paid property tax on their homestead for several years due to senior citizen exemption. I have been told recently that when I inherit this property, I will owe all the back taxes from the time that they have not paid any. Does anyone know if this is true? What's the real skinny on this?
Thanks in advance,
Dave

[Huntindad]

That would probably be best answered by the appraisal district folks for that county. If they aren't sure, ask for the chief appraser.

good luck.

[bowhunterhelm]

Property tax sucks!

[ken]

I don't know where they live but the senior citizen exemption usually results in a reduction in real estate taxes, not a total abatement. If there are back taxes due they will have to be paid before title changes hands. A more pressing question is, if there are back taxes due are they in danger of forclosure? Taxing entities can forclose if taxes aren't paid.

[Burnadell]

Ken is correct. A senior citizen exemption simply means that their taxes were frozen at the same level that they were paying when they received the exemption...usually age 65, but that may differ by taxing entity. It does NOT mean they are exempt from paying ANY property taxes. The taxes have been accruing, and probably accruing interest and penalties. I can't imagine that the taxing entities (county, school, city, etc) haven't been sending delinquent notices and/or foreclosure notices; they usually won't let taxes go more than a few years before they get serious about collecting them through foreclosure.

Check with the appraisal district in the county in which the property is located, and they can tell you what is owed and what needs to be done. Many appraisal disticts have the info available online, and it is public information. If they are in Montgomery County, here is their website: http://www.mcad-tx.org/. Click on "Records" then "Owner Search" (on the left).

Good luck.

[Buckrider]

This is NOT something you want to let go on without finding out just exactly what is supposed to be happening for sure!

[m'gobo]

Is it enough property to get an ag. exemption? I would look in to that. This will drop the tax considerably after a few years. My grandmother had a deal like that and when she sold her house, there were $17,000+ in taxes owed. Had she left that house to my mom and aunt, They would have had to come up with the money before they could have the house.

[BentBow]

Are you positive they have been paying zero taxes?? They have got to have received a statement on owed taxes. My dad is getting up in age, and forgets everything, if the wife or I don't go see just what has come in the mail.

[Randy]

This is my specialty.

It is possible that they are exempt from tax. If their property is valued low enough and their exemption amout is more valuable than the property value.

Only way you will be responsible for back tax is if they owe tax and havnt been paying it.

On the other hand when you receive the property and they over 65 and other exemptions are removed you will then have to start paying the full tax burden. Since the property will no longer be able to have the exemption status.

[doncom]

Dang Randy, multi-talented....I thought your specialty was killing stuff (like hogs and beers)....

[Randy]

Yes Sir Mr. Comedy, Im a man of many talents. Sad enough property tax is one of them.

[Trouble]

Aggiebowhunter and a few of the others nailed it. Also, the past taxes that were exempted will not be due when the property sells or is deeded to a new owner. The only time there are previous taxable dollars that have to be paid are for delinquent taxes and in the case of an agricultural exemption. The ag exemption is a totally different thing.

[Randy]

If it is under ag expemtion and you buy it or receive it, you best bet is to keep it in ag use or you will be required to pay roll back tax. Even if you decided to build yourself a house on 1 acre, you will have to pay rollback tax at the full value for that one acre.

If you change usage or sell it to someone else with the ag exemption on it you will still be required to pay the roll back. One thing to remember is tax always goes with the owner. So if you sell it owing tax it becomes their burden.

[Burnadell]

Okay...first, you can't get an agricultural exemption on a HOMESTEAD; an ag "exemption" means that the LAND, not house, is taxed on the value of the land being used as agricultural land. There are requirements that have to be met in order for the appraisal district to grant a tax appraisal based on agricultural value, rather than true market value. Txcoonhunter's original post said this is a homestead, so how did ag exemptions come into play?
Secondly, if you buy land that was previously appraised at an ag value, and you do not maintain the land as ag land, you will NOT have to pay any rollback taxes on previously exempted (or reduced) taxes. You simply will be required to pay taxes going forward based on the full market value of the land.
Thirdly, when real property is sold, regardless of who the buyer is, any delinquent taxes will have to be paid at closing or the title insurance company will not issue a title policy. Generally they will be paid by the title company and reduced from the seller's proceeds.
Fourthly, if you inherit or purchase real property, you receive it subject to the taxes due, so it is important to verify that taxes are curent at the time the deed is transferred.

It is always difficult to provide advise when important details are omitted. Txcoonhunter, you need to pay a visit to the appraisal district and/or your folk's tax assesor collector. Feel free to private mail me or call me at 800-755-7236 if I can answer your questions. Good luck.

[Coon]

Thanks for all the input, guys. My first order of business will be to look at the tax records my parents have in their possession to determine why they are paying zero taxes. Then I will prceed from there. This is 3.033 acres in Montgomery county. They (Montgomery co.) have a history of trying to "stick it to you" any way they can when it comes to getting money out of you. I just don't want to be surprised by some enormous tax bill when the time comes. My preference would be of course that my parents live until Jesus comes and I won't ever have to deal with this. But they are aging fast now and it's bad enough having to deal with their mortality. If and when I lose them, I don't need to have to deal with money grubbing tax collectors!
Thanks again,
Dave