Thursday, September 04, 2008
I Knew It Was Too Good To Be True
Despite Decline in Actual Market Values, Austin Suburb Appraisals Increase and Eat Up Property Tax Rate Cut
In a recent post, I lauded the Austin suburb of Leander for reducing their property tax rates. Yet, we learn today from the Hill Country News that local tax bills are actually going up because the appraisals on property are increasing.
But what makes this increase a harder to swallow is market values for the area are actually decreasing.
According to the HCN story, the average tax bills in Cedar Park look like this over the last four years:
However, according to City-Data.com, the median home sales price dropped from approximately $240K in the second quarter of 2007 to around $200,000 in the second quarter of 2008, nearly a 17% decrease. Home sales also decreased over the same time from approximately 600 to 350, a 41% decrease.
To be fair, the local pols are grappling with how to serve the needs of a booming community and are, perhaps, to be given credit for not heaping a larger rate onto the increased appraisals.
But in any event, the information above should prove that there is no true linkage between property appraisals done by the local appraisal district and actual market data. Perhaps citizens protesting their property tax increases now have new ammunition?
In a recent post, I lauded the Austin suburb of Leander for reducing their property tax rates. Yet, we learn today from the Hill Country News that local tax bills are actually going up because the appraisals on property are increasing.
In a thriving community where homes, businesses and schools are sproutingI knew there had to be a catch. Since property taxes equal appraised valuation times tax rate (for each taxing jurisdiction to which a property owner belongs), there are two variables that can be tinkered with to get to the final tax owed. With the tax man, if the left hand doesn't get you, then the right one will.
like Texas bluebonnets in the spring, appraisal values continue to soar.
But what makes this increase a harder to swallow is market values for the area are actually decreasing.
According to the HCN story, the average tax bills in Cedar Park look like this over the last four years:
- 2005-06: $4,114.80
- 2006-07: $4,112.10
- 2007-08: $4,209.81
- 2008-09: $4,618.17
However, according to City-Data.com, the median home sales price dropped from approximately $240K in the second quarter of 2007 to around $200,000 in the second quarter of 2008, nearly a 17% decrease. Home sales also decreased over the same time from approximately 600 to 350, a 41% decrease.
To be fair, the local pols are grappling with how to serve the needs of a booming community and are, perhaps, to be given credit for not heaping a larger rate onto the increased appraisals.
But in any event, the information above should prove that there is no true linkage between property appraisals done by the local appraisal district and actual market data. Perhaps citizens protesting their property tax increases now have new ammunition?
