Post Number: 1
|Posted on Monday, October 17, 2005 - 11:00 am: |
We just got the school and property taxes statement but it only shows the taxes on the land and not the property. Can anyone tell me how to determine the accurate taxes before. I pay more towards the escrow now, but I don't want to be floored when the actual taxes are determined
Jason Gray, Assistant City Manager
Post Number: 147
|Posted on Tuesday, October 18, 2005 - 01:10 pm: |
Thanks for the question. The quick answer is to simply take what you expect your home value to be (you can probably take your purchase price as a good starting point), divide that by $100, and multiply it by the tax rate for each entity.
Now, for more detail - taxes are assessed on the value of a property as of January 1 of that particlar year, so if you purchase a home that has been built since January 1, you will only be taxed on the value of the land and not the home for your first tax bill. This will clearly skew the taxes on the property on the low side. Many people don't realize this when they are setting up their escrow accounts and end up getting surprised when the value increases to included the home value along with the property - just as you have said you do not want. So, if you are planning on escrowing, my suggestion is to find out what you think your actual property taxes will be in year two, and base your escrow amount on that, or plan for it accordingly if you do not want to escrow that amount. It won't be exact, but it should be reasonably close. In order to do this, take your home value - usually pretty close to the sale price of the home - divide that by $100 and multiply it by the tax rates of the various taxing units, so by example, if you purchased a $200,000 home:
$200,000 / $100 = $2000
City of Frisco Tax Rate = $.44893
City of Frisco Tax Amount = $2000 x $.44893 = $897.60.
Frisco ISD Tax Rate = $1.63000
Frisco ISD Tax Amount = $3,260
(Note - May be either Prosper ISD at $1.975310 or Lewisville ISD at $1.7700)
Collin County Tax Rate = $.25000
Colln County Tax Amount = $500
(Note - may be Denton County at $.24648)
Collin County Community College District Tax Rate = $.089422
CCCCD Tax Amount = $178.84
(Note - only applicable if you live in Collin County)
Then, simply add all of these up ($4,836.44 in this example) and divide that by the number of payments per year - we'll use a typical monthly payment for this, and in this example, I would be putting $403.04 in escrow or savings each month for taxes.
For information on tax rates for each entity, you can go to http://www.collincad.org/taxrates_and_exemptions/2005taxrate.php for Collin County and http://www.dentoncad.com/Appraisal/PublicAccess/ for Denton County.
I hope that this helps - but if you have any additional questions, don't hesitate to contact me.
Assistant City Manager