Austin, TX Real Estate
Austin is a wonderful place to live and work and that’s why so many families move here. It’s also why so many companies are headquartered here. With demand for real estate climbing in recent years, it’s no surprise that Property values are rising too and why Austin has some of the highest property taxes in Texas. That can be bad news, particularly for owners of commercial real estate. This is because there are no limits on how much property taxes can alter from year to year on commercial properties in the area. Accordingly, someone who owns commercial or industrial land may find themselves with a hefty property tax bill increase.
Recent Growth in Austin
Austin and its surrounding areas have been growing with unprecedented speed in recent years. Average property taxes have increased 21% over the last five years according to the Travis County appraisal district. Of course, all of this growth comes at a cost. Increased demands on school districts, roads, police, fire stations and other public services mean increased costs. All communities in the region rely on an annual property tax to pay for these services. Recently, they have been raising rates to cover the growing expenses.
Federal Tax Bill
The situation became even more serious with passage of the recent Federal Tax Bill. Now, there is a cap on how much property tax can be deducted on federal tax returns. This is especially bad news for businesses that frequently pay a lion’s share of taxes collected by municipalities. The passage of the bill has thrusted Austin into the ninth worst city in the nation for homebuyers.
Paying Property Taxes Early
In other states, some tax payers were allowed to pay their 2018 taxes on property early to avoid the deduction cap. This is not the case in Texas, where property bills for 2018 have not been prepared yet. Accordingly, commercial property owners in the area have no choice but to wait to pay their property taxes until they receive their bill. This means that they will not be able to deduct the full cost from their federal tax return for 2018.
That is unfortunate, because tax rates are subject to the annual budget requirements of various local entities that are in some way managed by the government. Each entity, such as a school district, will review the value of the properties in its jurisdiction so that they can set a rate that will help them meet their budget. When big projects are on the horizon, this can mean a significant increase in taxes.
With tax rates being subject to seemingly arbitrary hikes from year to year, it is imperative for owners of commercial property in the Austin area to understand their tax bill and to ensure that it is accurate. This can be a difficult task, especially when business owners would rather be focused on turning a profit.
Austin Property Tax Appeals
That’s where Assessment Technologies enters the picture. This team of professionals helps commercial and industrial property owners ensure the accuracy of their assessment. If they believe that the property is being incorrectly assessed, then they can undertake an appeal.
With the assistance of Assessment Technologies, you can rest assured that you are only paying your fair share in property taxes. Contact us today to learn how you can protect yourself, especially with the new federal tax bill coming into play.
