One of the positives that came out of the Special Session was the reduction of school property taxes by 1/3rd over the next 2 years. However, following the Special Session last Spring, there was a tremendous amount of publicity that the property tax reduction would lead to a savings for the owner of an average priced home of $2,000 over the next 3 years. For the average priced home in Spring Branch, the total reduction will be less than that amount, but will result in a meaningful savings over time.
Indeed, here's the calculation that shows what the owner of the average priced home in Spring Branch can expect:
- 2005 Average Home Taxable Value of $204,166 x 2005 Tax Rate of $1.81 = $3,695.40
- 2006 Average Home Taxable Value of $219,354 x 2006 Tax Rate of $1.6315 = $3,578.76
That's a savings of only $116.64 next year.
In order to enjoy the real benefits of the property tax reduction, you will have to wait until 2007 when the rate will be further reduced to $1.285. Assuming similar increases in appraisals that have been seen in recent years, here's the calculation:
- 2006 Average Home Taxable Value of $219,354 x 2006 Tax Rate of $1.6315 = $3,578.76
- 2007 Average Home Taxable Value of $230,324.27 x 2007 Tax Rate of $1.285 = $2,959.67
So the savings for 2007 vs. 2006 will be $619.09 and $735.73 over 2005. Assuming similar savings for 2008, the 3 year cumulative total for Spring Branch's average priced home will be approximately $1,400.
You can check out your savings using the Chronicle's online calculator.
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