Colligative property tax rules in Houston are getting a major overhaul.
Housing prices in Houston have surged by more than 10 percent since the start of the year, and many properties in the city are worth far more than their fair market value.
The Houston Chronicle recently reported that one Houston property was worth more than $200 million.
According to the Tax Foundation, the Houston tax code has become one of the most regressive in the country, and the Tax Commission has said that the city’s property tax rate is already more than triple what it should be.
But, that doesn’t mean that property taxes aren’t still on the rise.
Property tax rules have been tweaked to help offset rising prices, and now that it is, some Houstonians are struggling to save up enough to buy a home.
Houma, a Houston suburb, is currently one of just three cities in the nation that has no property tax at all.
This makes Houma one of those places that may not be able to afford a home, but they have to find one in a competitive market.
The city’s real estate market is also booming.
A new study published by the Texas Policy Evaluation Project found that the median home price in Houma is more than double what it was a decade ago.
And that price jump is fueled by a rising number of sales and new listings.
Houses in the Houston suburbs have skyrocketed in value.
(Photo: John Minchillo/AP)For some homeowners, the price hike isn’t just a matter of life or death.
According to the Houston Chronicle, one Houston resident recently received a bill for more than 50 percent of her property tax bill.
“I was very, very surprised,” said Susan Akins.
“They were putting the price up to $600,000 and then they gave me $200,000 in property taxes.
As Houston is experiencing a boom in home sales, homeowners in the suburbs are having a hard time paying the higher property taxes that are being levied in the cities.
“They’re taking their property tax payments out of the city, they’re taking the value of their homes out of Houston,” said Akins, who said she has to borrow money to make ends meet.