Property Tax Question/Advice

[qwerty]

Hi,

I just received my property tax bill in the mail. It was for a little above $3,000. I have a 2/2 condo in the Uptown/Galleria area.

I moved in this year in August and decided to not escrow my taxes.

My question is it possible for my property tax to be adjusted to the time I moved in? Cause it seems like I am being billed for the whole year.

tia

[cottonmather0]

Hi,

I just received my property tax bill in the mail. It was for a little above $3,000. I have a 2/2 condo in the Uptown/Galleria area.

I moved in this year in August and decided to not escrow my taxes.

My question is it possible for my property tax to be adjusted to the time I moved in? Cause it seems like I am being billed for the whole year.

tia

You are indeed being billed for the whole year, but any kind of adjustment for the time you didn't own the property should have already been made between the previous owner and you and is usually done as an adjustment to the sales price in one way or another (ie you agree to pay the full tax bill and the seller agrees to discount the property by an amount equal to his share of the bill, or vice versa). All HCAD cares about is who owns the property on 12/31 for the preceding 12 months and will likely tell you as much if you went there and asked someone about it. (somebody correct me if I'm wrong).

If you are the first owner of your condo, then you might be able to go back to the developer and raise a stink to get some money out of them (although they will likely point to some fine print somewhere saying that it's your problem alone), but if you bought it from a private party then they will probably tell you to get lost and that it was your fault for not speaking up sooner - or they might also say that they had to "prepay" the taxes the same way when they bought the property themselves and now they're just getting their money back, which is what happens quite often, I think.

I guess what I am saying is, there is nothing procedurally you can do at HCAD. They might feel sorry for you and cut you a break in one way or another, but the amount on the bill is the amount of the taxes that you as the owner owe to them, and since it's your name on the deed it's your responsibility to make sure its paid.

I am surprised by your question, though, because this is the kind of thing that realtors are actually good for - to make sure that you don't miss stuff like this.

Like I said, somebody else can feel free to correct me if I am missing something from the question.

Edited December 29, 2008 by cottonmather0

[D.J.]

Check your closing statement. It should show where the previous owner paid for Jan-Aug, and that amount (usually an estimate) was taken off your closing cost balance. I agree with cottonmather; your agent or mortgage broker should have reviewed this with you before or at closing. At least it's deductible off your 2008 income taxes if you pay by 12/31. Good luck!

[BryanS]

No need to even check your closing statement... you owe 100% of the taxes. Your closing statement will just show how the prior owner's portion of the taxes were "paid" from their closing costs and/or equity.

EDIT: You did get to inherit the homestead exemption. Make sure you file paperwork in Jan stating you wish to keep this exemption under your name, as the new owner. Otherwise, you'll owe even more taxes next year.

Edited December 30, 2008 by BryanS