Why did we miss the bull run on housing prices? (TEXAS TAXES)

Star-Telegram ^ | Oct 31, 2007 | MITCHELL SCHNURMAN

[Dubya]

But another factor behind our slow growth in prices will pain the average Joe: The other key costs of homeownership -- taxes, insurance and utilities -- are so high in Texas that they probably hurt values.

Which means we both make less on our homes and pay more to own and operate them than in most other parts of the country.

[Dubya]

Property taxes and homeowners insurance are roughly double the national averages. And our electric bills are second only to Hawaii's because Texans use a lot of electricity and pay high rates for it.

[neodad]

Another factor that I didn’t see in the article is the absence of state income taxes.

[Dubya]

Why have foreclosures in the area been rising at double-digit rates for the past five years? All of it can't be blamed on subprime lending and adjustable mortgages.

[mnehring]

The overall per capita tax rate in Texas, however, is lower. Even factoring in higher average property tax, we don’t have an income tax nor personal property tax (taxation of possessions other than home) and our sales tax is considerably low.

I believe Texas has the 2nd lowest per capita tax rate in the country (including property taxes)

[Dubya]

Last year, Jim Gaines of Texas A&M found that increases in taxes, insurance and utilities could have a bigger impact on housing affordability than changes in interest rates.

[SaxxonWoods]

“Last year, Jim Gaines of Texas A&M...”

My God, you are going to listen to Aggies now?

Bwahahahaha!

By the way, a rise in the foreclosure rate is only important when taken in the context of total percentage of home stock in foreclosure. The “rate” can go up by a big scary looking number without hurting things much at all if the actual percentage of home stock in foreclosure remains low.

[ikka]

Even factoring in higher average property tax, we don’t have an income tax nor personal property tax (taxation of possessions other than home) and our sales tax is considerably low.

That is not true in Dallas, at least: if you send your web server to a datacenter in Dallas, you will get a bill from Dallas based on the value of the server.

[WackySam]

Another factor that I didn’t see in the article is the absence of state income taxes.

Here in Florida we don't have state income tax either, yet our average tax rate is 1.9 per 100 compared to Texas at 3.0 per 100.

[kittymyrib]

Texans are being swindled by the electric companies. Our bill in Sept. for a 1,600 Sq.Ft. home was $138, with a fuel adjustment surcharge of $92 added to it. You can buy a lot of natural gas for generation with that hefty extra charge. Imagine having that added to thousands of utility bills, and you know they are gouging the consumers.
Texas utility companies are one of the most effective lobbying groups in Austin, and that’s all that matters to the politicians. We really need to clean house next year.

[WackySam]

Our bill in Sept. for a 1,600 Sq.Ft. home was $138, with a fuel adjustment surcharge of $92 added to it.

How many kWh's is that for? Here in Tampa my bill averages around $240.00 per month for 2000 kWh.

[PAR35]

I moved from Mississippi to Texas a few years ago. My car tag went from over $600 to over $50.

The big expense in Texas is school taxes. Of course, in Mississippi, you pay lower school taxes, but you have to pay private school tuition on top of that. In many parts of Texas, you can actually use the public schools.

[Marie]

Another factor that I didn’t see in the article is the absence of state income taxes.

I grew up in Wyoming. (no income tax) I now own a home in TX. (no income tax) Wyoming didn't have to screw their home owners to get things done. IMHO, Texas uses the "we don't have an income tax" excuse a little too much.

[Marie]

In many parts of Texas, you can actually use the public schools.

That's actually true. I adore my kids' school system.

But, if you're paying for a private school education, that *stops* when your kids graduate. In Texas, we pay as long as we own land. As hubby and I plan on staying here for life, that means our bill will go on for about 50 years instead of 18...

[Grams A]

We don’t have state income taxes in Texas yet - but in a Houston suburb for a not expensive house we pay $400/month in school and property taxes, $100/month for MUD taxes (Municipal Utility District), $200/month for regular insurance, $150/month for mandatory wind insurance. Add to that up to $300/month for electricity in the really hot, humid time of the year, plus HOA dues that are pushing $100/month, a minimum monthly water bill of $60 - and all of this includes an allowance for the Homestead Exemption. The house payment is not big deal in and of itself, it’s all the other hands in the pot that make home ownership really tough for some.

[neb52]

“$3 Property tax rate per $100 of assessed value in 2005 in Texas”

This is incorrect, property taxes in and around DFW is plus or minus $1 per $100. Who pays $3 per $100? Austin?

[neb52]

What Datacenter is that? That pricing scheme is unheard of in CoLo business. You are charged for the rack space no the value of the server(which there is no way for them to know that).

[neb52]

The low rise in home values in Texas is exactly tied to to many housing options. We have plenty of housing and space to build more to meat the demand. Right now we have a little to much supply.

[neb52]

The low rise in home values in Texas is exactly tied to to many housing options. We have plenty of housing and space to build more to meat the demand. Right now we have a little to much supply.