About Eric Sexton Expertise All aspects of buying and selling homes including: General real estate questions, Contracts, Negotiations, surveys, title work and general questions about mortgages. I CAN NOT GIVE LEGAL ADVICE AND WILL NOT BE ABLE TO ANSWER QUESTIONS WHERE LEGAL ADVICE IS NECESSARY.
Experience
I have been a real estate agent for 6 years and a broker for 2 years.
Organizations National Association of REALTORS and Texas Association of REALTORS.
Expert: Eric Sexton Date: 6/13/2007 Subject: Tax and Education Reform Bill
Question Our company is considering buying several multi-family properties in Texas and I have a question about the Tax and Education Reform Bill passed in May of 2006. This bill states that property taxes will be cut by 17 cents in 2007 and by a further 33 cents in 2008 bringing local tax rates to $1 per $100 valuation. If we close on our property in 2007 and pay our property taxes in January of 2008, will we be using the rate that is 17 cents less than last year? Also, the bill also allows districts to add four cents of local enrichment to the tax rate by local school board approval. Where can I go to find out if this has been done?
Our properties are in Houston and Dallas. All of the articles about how this bill will be put into place and executed that I have found have been from early 2006. I just need some more recent information to see how this will affect our potential purchases in the Texas area.
I would appreciate any help.
Thank you.
Answer Kevin,
I am not familiar with the specifics of the bill. I am trying to find more specific information for you.
In general, here is how it works. Property taxes are charged in arrears, meaning that if you close in 2007, you will be charged the tax rate for 2006. The seller will owe you a credit of taxes up to the date of closing at the 2006 rate. The date the taxes are paid is irrelevant as the the tax credit at the closing is based on the previous year.
I am going to continue searching www.Texas.gov to find something more specific for you, but at this time I would use the above guidelines.
I will be in touch as soon as I can find something more specific.
