There is a huge case in Texas that is raising the question of the county property tax as being Unconstitutional. Is it Unconstitutional? I believe it is.
Having been a home owner yet now a renter, I still remain interested in the subject of taxation of all kinds. That includes Property Tax which essentially is a tax on the unrealized value of your house or rental property. UNREALIZED is the key. There is a somewhat long and legalese video on the Texas case and how it relates Nationally. Here is that video:
If you skipped the video, you might just need to know that you can appeal your property tax. This is usually available only at certain times when the appeal process is “open”. If you miss it, you must wait for the next year when it reopens. That in itself is wrong. Property Tax can be complex and many never even realize their tax went up when paying through escrows as most mortgage holders do.
One of my clients recently got a big jolt when her escrow was increased. It made a huge monthly difference in the affordability because it rises faster than inflation and faster than her income. She keeps working harder and longer and spinning her wheels. Plus, the law allows the county to sell her house to pay off tax deficiencies. It can and does happen. This is a travesty and in my view Unconstitutional because the assessments are based upon UNREALIZED valuations. Remember Kamala's thing about wanting to tax unrealized capital gains? Same bullshit.
With the cited case in Texas pointing to the fraud and the rapidly rising cost of Home Owner's Insurance, many homeowners will be financially stressed and some will lose their homes. Yes, there are some exemptions that can be used but these do not change the fraud, though they might limit the effect. If the fraud was gone, the exemptions would limit it to a more accurate and fair assessment.
In the end, you MUST fight or you are tacitly approving of this screw job. In rape cases, the question often asked is if the victim said NO. Well Ok then, say NO! NO! NO! And make sure it is heard.
This broadly fits into the current National problem surrounding Home Ownership affordability. It was once the recommendation that one not exceed 28% of their income for housing. Then it became 35% and now it is 50%. In 1955, the average American could typically afford a house by dedicating around 25% of their income to housing payments, with the average new home costing around $10,950 and the median household income being approximately $4,400, making it significantly more accessible than in today's market. Notice that in 1955 a house cost a little more than 2X the annual income. In today's market, the average house costs 5X of the annual income. So if you make $100K expect to pay $500K at 6.8% interest (if you have great credit), fraudulently high Property Taxes and ever increasing insurance costs.
The American Dream of owning a home has been pissed on. Fight back or learn to enjoy the golden shower.
Best,
Donn Marier
DM-Your Own CFO