If you want to relocate or if you’re looking for a cheap state to live in, living down South in Texas would be a good idea. Overall, it’s cheaper than bigger states such as California. But if indeed you’re planning of relocating there, you should know that they have higher property taxes.
Increase in Property Tax
Citizens of Texas complain about the rise of property taxes every year. According to State Senator Paul Bettencourt, there’s a total collected growth of 41% in San Antonio from the year 2013 to 2017. Each year, the average increase goes up to 10%.
Although there have been several decreases over the years, it’s usually not enough. Common property owners are still hanging by a thread every time there’s a change in tax.
This increase affects the cost of houses in the state – whether you’re renting or buying. The prices have increased rapidly which can be incredibly hard for the people on the minimum wage.
Property Tax Cap
With the issue of increasing property taxes in Texas, several lawmakers are trying to help these struggling neighborhoods by adding a property tax cap. According to this regulation, property taxes can’t go over 2.5% every year. The only exception is when an election is held.
While this may seem like a good thing, there are a number of people who are against this law.
So how does this affect you?
It does have the possibility of helping you save money since you’ll be paying less for the tax. But this could greatly affect the types and quality of the services you receive.
Tax is where the government gets money to run public services like public schools and free education as well as hospitals and free healthcare. Texas has now become a hot spot for people to move to. This means the city is expanding and more people are now demanding supplies and services.
Once demand has risen but less money is put into it, the government has no choice but to lessen the quality or quantity. In the end, you may not get what you need, or you’re getting less of what you deserve and paid for.
Besides the housing cost, most people choose a place where they can get quality services. The property tax cap of 2.5% is too low to keep the economy of Texas going. The lowered quality and quantity of services could mean more people moving from the state instead of moving into.
The best solution the government could come up with is to find a good number that isn’t too high but also not too low. It should be somewhere that allows property owners to take a breather without ruining the quality of services.
In conclusion, the 2.5% cap on property taxes is too good to be true. This can hinder the growth of Texas as a state and could affect the quality of life in the state. However, it is possible that this number won’t last as there are lots of opposition.
ENROLL TODAY In the Property Tax Protection Program™
Your property taxes will be aggressively appealed every year by the #1 property tax firm in the country. If your taxes are not reduced you PAY NOTHING, and a portion of the tax savings is the only fee you pay when your taxes are reduced! Many FREE benefits come with enrollment.