In October, you’ll go to your mailbox, and, inside, there will be an annual property tax bill. While Texas has notoriously high property taxes across the board, the 2021 property tax bills are set to be some of the highest on record. Most people know that an increase in home values is one of the top three reasons for higher property taxes this year; however, it’s not the only reason property taxes are on the rise, and homeowners should be prepared for a higher bill this year. In this blog, you can find out more about the reasons for the increase in property taxes and what you can expect this season.
Property Values Are Through the Roof!
The main reason people are going to see an increase in their property tax bill is that the value of property has increased dramatically. The good news is that, for taxing purposes, property tax values in the state of Texas can only be increased by 10% each year. For a house valued at $100,000, a 10% increase in value would be $110,000. In a city that has the statewide average property tax rate of 1.8%, that home’s annual bill would increase from $1,800 to 1,980.
Sales Tax Revenues Are Down
In addition to the increase in property values, a decrease in sales tax revenues means that more of the burden of keeping the state running will need to be covered by property taxes. With people out of work, businesses closing, and other costs on the rise, money spent on nonessential items is down significantly. While jobs and the economy seem to be trending up, there is still a lot of rebuilding that needs to happen, and it’s unlikely to be done before property tax bills are sent out this October. That means the percentage of the cost of running the state that’s typically covered by sales tax revenues needs to be funded through property taxes and other sources.
Expenses Are Up
Finally, unemployment, a once-in-a-lifetime world-wide disaster, a healthcare crisis, and other issues mean that expenses are up this year, and the government is going to need more funding to manage the cost of infrastructure and other resources. With sales taxes down, much of that burden is going to fall to property owners who are likely going to see an increase in the percentage of tax assessed by school systems and other local districts. There are caps on these increases as well, but they can be increased significantly before voter approval is necessary. So, make sure you are paying attention when tax rates are published in your county.
Let the Home Tax Solutions Team Help
If this past year has been hard on you financially or you need a little help covering a higher than usual property tax bill, the Home Tax Solutions team is here to help. We offer property tax loans to cover the cost of your outstanding home tax bill, and you can pay us back in low, monthly payments that allow you to break free from the cycle of debt related to property taxes and delinquency fees. Our knowledgeable team members can also help you get back on track in order to budget for and feel prepared to cover future property tax bills. Let’s get started today. All you have to do is complete our simple, online application form. Then, one of our loan officers will be in touch to finalize the details of your loan.