2022 Property Tax Bills

[goofiefoot]

I have 2 rental properties (read: not homesteaded), one in Austin, one in Cedar Park which were appraised in May during the peak of the bubble. Both appraisals were up 46% over 2021, yet were still in line with what properties were selling for at that time. I did not challenge the appraisals this year, as I have had no success in doing so the past few years.

Fast-forward to now, bubble is deflating quickly, and the market is vastly different than May. Both house estimates (per Zillow's tool) are well below the appraisals.

Williamson County has my bill posted (33% over 2021 bill), based on the May appraisal.

Travis County has not posted their bill, and their website has the following message:

• Some tax rates require approval on Nov 8. Property owners will receive bills by mid-December.

Looks like this a proposed tax rate change, so who knows how much that bill will be.

This is a new one for me, since I purchased both homes in the 2012/2013 timeframe and have seen nothing but consistent growth. I've raised rental rates conservatively over the years, and have been able to keep reasonable tenants, but I'm about to have to start jumping rents up more aggressively just to try to stem the bleeding. Assuming this bubble continues to deflate, or at least become more stable, am I simply in a waiting game to see how the houses appraise in 2023? Anyone have any tips/tricks to play this game a bit better?

[Walker]

It's a big con game. All politicians claim to lower tax rates and the local entities just raise valuations to get more taxes.

[goofiefoot]

It's a big con game. All politicians claim to lower tax rates and the local entities just raise valuations to get more taxes.

Oh yeah, I absolutely agree! We've been fortunate that these rentals have been a profitable investment over the years, and should continue to be - just less so if the tax game keeps getting played the way it has.

I've seen many of the candidates this election cycle talk about changing or even eliminating the property tax system to ease the burden on taxpayers. Sounds like lip service to me, but who knows. I feel like this year, I'm overpaying my overpaying of taxes and it's not sitting well.

[miket]

Yep, and the so-called property tax "help" actually increased my taxes on top of the absurd value increase. State law was changed to a minimum homestead exemption of $40,000, my exemption WAS $75,000 so they LOWERED my exemption to $40,000.

Dirtbags ( thats the nicest, family friendly way I can say it )

[Throwin Darts]

I got out of the rental property game when I realized I couldn’t raise rents as fast as my taxes were going up.

Market values will probably go down but don’t expect the county to be quick to react

[Briar Friar]

Always fight your taxes and encourage all the neighbors to do so too.
Raise rents accordingly to market value.
People wont be / arent able to buy with increased interest rates. Home prices will and are falling but rents will continue to increase. You should do so too.

Your rentals are not a charity organization.

Weve sold some houses pre-covid in CP because of similar situation and market rental prices were not increasing accordingly with tax valuation increases. That game has somewhat ended.

Good luck MrFoot.

[ATXBowhunter]

I also own several rental properties in Austin and saw a huge spike in my tax appraisals. I always hire a firm to fight it for me (no upfront cost but they keep 30% of any savings). In my experience, tax appraisals will lag the actual value when home prices are decreasing..so expect a high appraisal next yr. Best thing to do is to fight it.

[TKRanch]

Everyone should protest their valuations even if they have "freezes" in place or even if they have AG on property. Too many folks simply try to keep their tax to pay exposure down and don't look at the value assigned to property should those exemptions go away.

[Montec man]

Time to get the heck out of Williamson county for me. If my property is worth close to what the county claims it is and taxes me on, I could cash out and retire on the coast somewhere.

[mmoses]

Fight them every year.

Dont just ask them to lower it. Get some comps, you can almost always find neighbors with cheaper rates.

Might be worth hiring a company also.