How Much should Property Taxes Really Be?

Property tax bills are out. And it gets me to thinking how much should property taxes really, really be? Right. So we had a budget shortfall not too long ago and we didn’t have enough money with our local government, with the economy kind of having a problem.

I think it resulted in after like 2007 correction and prices coming down and we had all this stuff going on and then it got to this level where we had problems, right?

And people had to do things and they had to like tighten their belt in the schools. I remember going as far as a school district, they were like, we need to do things a lot better. And they had things going on like, let’s not mow the lawn as often and let’s have the sports coach mow the lawn. Yeah, right.

And you said that earlier and I was like, What? But now.  

Yeah, I remember the coaches. I remember the coach out on the mowing the lawn and it kind of was his time where they had people that had to get off of being fat and happy and come up with a way to just make things work. Yeah. And it happened. Yeah.

And I’d say we were frugal then. So now fast forward to where we are now. Home prices have went up like crazy. We made it work when everything was as price. And there is this much tax money coming in. Now there’s this much tax money coming in and it looks like it’s going to go to here.

So my question really is how much should property taxes really be? How much should every person be chipping in? Right, because my taxes are paying for schools and for those things, but a good amount of it is paying for like police and fire and EMS, all those like things here locally for my ability to go to the park and I can consume so much as just one human, but it is a lot more money. But do they have more expense?

I don’t know. Do we have more parks now than we did before? Like twice as many. Are things gold plated here now? Now that we have twice as much money. Right. Is a DMV like amazing? Now, are all these things that great or do we still hear the same things? Do we fight with local politicians on things like getting building permits done in a timely fashion? Right. Is that make sense?

Or do we still have the same things going on as we did before? So should we be demanding a lot more if they’re taking that much more right and have that if their budgets just like ballooning. And they made it work before. So I propose to you $7,500 a year. Is how much I think taxes should be for your property taxes if at the moment everybody. At the most.

So you’re saying cap it at 7500?  

Yeah, I’m kind of looking at it like, how much do I consume? Right. Mm hmm. Because it all comes back. If property taxes go up that much on people own properties, then they go up on the rental community as well. So it’s looked at upon that, you know, all of a sudden that is just one of those things on people who own homes and it’s like, yeah, tax them, they deserve it.

But then it also it’s the same thing. It’s just reflected in the rental rate really quick and you know, somebody’s renting is going to be disproportionately impacted as much. So any time that you raise those types of things, it’s going to be a problem on everybody.

So I think Texas is one of the. Leading states with the highest property taxes.

I don’t know, because. Yeah, there’s no state income tax. Right.

Which you know, that it’s kind of strange because you would think that that’s where wealthy people would live. More extremely wealthy. Ultra wealthy people would live here because they don’t have that. But then they have, you know, then it equates in their property taxes being astronomical.

So. Well, I think it puts a real, real cap on how big of homes people build in, what the value is. And it really actually changes what’s going on. Because if you think about a person who has uber wealth and they could build what they want to build and right like pay for it, if you’re taxed like ridiculously on that property, then it becomes too expensive and it becomes like impossible to build a property over a certain amount, a certain value.

Yeah. And if the basic home. Right. Like you can look up on, on any real estate dot com and do a search and look up properties. And if you look at almost anything that is being built new or just existing, it’s hard to find a family home. For under $1,000,000 now, all of a sudden, it’s just really ridiculous.

So if you think about that number, that there’s that many properties over that. Right. And then if that kind of becomes like a new normal that you get to a number like you’re talking about $1,000,000 home being like nice, but like.

If you have the money doesn’t matter. But I mean, they are outrageous taxes. I mean, they really are if you think about it like.

So how much should they really be? So I throw it back and I say like, make it work on 7500 bro.

There should be like that’s an offset it and I know they’re looking at that.
Yeah. Just look at me. 7500 is my number. Chat in and tell me everybody can pay 75.

No. Cap it out at that. I mean, like kind of Max, like you. Only I’m only consuming so much stuff, right? As as an.

Individual. Yes. We need to know. And it’s not about me, but I’m just saying.  

We’re looking at where we live in Frisco. There are a lot of new homes and new construction and things that if you go in different parts of the county. They don’t have as much. It’s like built out.

So I don’t know. Yeah. Like, what more are you getting? You know, so the state government has all this money coming in from. From oil revenue now. So oil revenue is up like crazy because the prices are up. So now think about all the tax that’s coming in from that. They continue to raise the taxes. Isn’t it like a tax ramp, but like the money’s there?

And if you want if you want the industry to continue to move forward, you know, with real estate in the wealth that’s created, the amount of wealth that must have been created in just the last year in just real estate, property values in the state of Texas. If you think about that, just think about an average person in their home went from if it went from 300 to 400000 on that simple basis.

Right. And added 100,000 if you added 100,000. So that person’s net worth. Think about how long it takes to save after tax 100,000 and how much you have to earn to do that, the amount of real wealth that was created in the last calendar year. Now, do you want to preserve it?

It kind of seems like, you know, as these tax things come out, I heard a lot of people saying, how am I ever going to be able to afford to move from this to this, my property taxes? And it feels like there needs to be some type of number. And so I propose 7500 is kind of like.

The maximum isn’t fair. So many purchases at this. I mean, you want your property to increase but man that could could definitely.

Well, I want the property value to go up for sure, but I need more services if I’m going to be paying if your taxes all of a sudden are 50,000 a year. And that’s not that extreme. That’s like a $2 million house around here pays 50,000 a year. Well, if a normal house now, right, is a million is $2 million even that luxurious compared to what it was. So wrap your mind around it and then just think like, you know, is 2 million that crazy and that person paying 50,000 a year in taxes?

Well, if they have a $4 million house, which is certainly very nice. Right. But not like it’s a castle. Yeah. Then it’s 100,000 a year. It just like straight line.

Well, the majority of it goes to the schools.

Perfect. And then our schools are over. I don’t know enough about this. I’m way down. Way, way out.

Of mind about that. But it would be interesting to understand from that standpoint, like, are they paying teachers more now that they’re getting. Yeah, right now, I don’t know.

Well, I know there’s a lot of Robin Hood that goes on around here because we are that. So then if you collect it, then it just leads. So it’s like, see. Yeah. I think that, you know, maybe and I know it’s being looked at, but it is something that we should all be aware of and understand and maybe advocate on behalf of.

Yeah. Now, how much you think property taxes really should be? Right. I’m interested to know, like kind of on an average family living in a home. Right? Like, kind of like average, average family. Mm hmm. How much should they really be paying in taxes? And I say 70 $500 is kind of like.

Does it balance out since we don’t have state income tax? I don’t think so. I still think it’s it’s a little.

Who knows? Well, there you go.

Episode Links

Frisco, Texas, DMV, EMS, Property tax bills, Mike Acquisto , Shana Acquisto , TNT 

Episode Recorded Live on YouTube 04.20.22

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