Can you get a property tax break?

https://www.wsj.com/articles/local-tax-breaks-retirees-11659…

**The Local Tax Break Many Retirees Don’t Know About — but Should**
**In this month’s Ask Encore: Many local governments offer tax relief for seniors and others. The problem is that many taxpayers aren’t aware of it.**
**By Glenn Ruffenach, The Wall Street Journal, Aug. 4, 2022**

**...**
**“There are hundreds of tax-relief programs in the U.S. for seniors, veterans, low-income families and others...”**

**Some of these certainly were new to me: a basic homestead exemption (for individuals, regardless of age or income, who own and reside in a home in the county); a “property assessment freeze” (to help offset future increases in assessed property values); exemptions for spouses of “peace officers and firefighters killed in the line of duty”; for disabled veterans (as well as their widows/widowers); for some individuals who are permanently disabled; and for residents when they reach specific ages: 62, 65 and 70. These age-related exemptions provide tax breaks above and beyond the homestead exemption. In some cases, the amount of property-tax relief is linked to, and/or limited by, applicants’ earnings. ...**

**So… where to find these exemptions? As I did, you can start online with your county tax office or tax assessor. The Lincoln Institute has a property-tax database—“Residential Property Tax Relief Programs”—that allows you to browse programs across the country. And AARP, the Washington, D.C.-based advocacy group for older adults, offers a service called Property Tax-Aide, in which volunteers help individuals apply for property-tax relief. This free program is available in 13 states and the District of Columbia, and there are plans to expand....** </b? [end quote]

I think this is worth checking into.

Wendy (cross-posted to LBYM Board)

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<<<The Local Tax Break Many Retirees Don’t Know About — but Should>>>

Of course, the macroeconomic effect of retiree property tax breaks is higher taxes for working people. States and municipalities have to collect enough revenue to balance their budget. A tax break for one person has to be made up by gouging another.

Few of these programs have any kind of “asset test” on wealth. They only look at a taxable income limit, or just give the tax break to everybody over a certin age (e.g., 60 or 65.)

You could have a $100 million worth of Berkshire Hathaway stock and be paying less in property taxes than a working family next door.

This is another program where you can capitalize on the ignorance and innumeracy of the average voter.

intercst
(still marveling at “Free Obamacare” for millionaire early retirees.)

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intercst:“Of course, the macroeconomic effect of retiree property tax breaks is higher taxes for working people. States and municipalities have to collect enough revenue to balance their budget. A tax break for one person has to be made up by gouging another.”

In my county, and others in Texas, you can get a ‘school tax’ freeze for those over 65. Your school taxes are forever frozen at that level. School taxes are 80% of the annual tax bill. It goes by county and not all have tax freezes for seniors.

Of course, if you are a home owner over 65, you very likely don’t have kids in school! And likely for all the time you were working, and may have had kids, you paid school tax to send them to school, or paid ‘your fair share’ even if you had no kids to sort of pay back the cost of your education.

How many seniors have a couple kids in school, riding the school buses, paying for new school construction, repairs, books, etc?

we pay more than enough for police, fire, ambulance, road repair, zoning boards, code enforcement, animal control, etc.


Not only that, if you are a homeowner and LIVE in the home, you get a break (up to $25,000 assessed value’ as a Homestead exemption. And yes, you live in a $100,000 home, that’s a 25% break. If you are ‘wealthy’ and live in a $500,000 home, it doesn’t help a whole lot bucks, heck, I’ll take it and did for years.


intercst: “Few of these programs have any kind of “asset test” on wealth. They only look at a taxable income limit, or just give the tax break to everybody over a certin age (e.g., 60 or 65.)”

Yup…but the homestead exemption is almost tiny for ‘wealthy’ high cost property owners.
it’s not a percentage of the cost. Live in rural TX in a $40,000 mobile home on SS, it makes a big difference.


intercst:“You could have a $100 million worth of Berkshire Hathaway stock and be paying less in property taxes than a working family next door.”

Yes, if you are over 65, true. But of course, the ‘family’ next door has kids in SCHOOL currently.

t

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Of course, the macroeconomic effect of retiree property tax breaks is higher taxes for working people.

Considering the fact that the tax breaks are often for those that have already given much (disabled veterans, seniors with no kids in local schools), it seems a fair trade off.

Few of these programs have any kind of “asset test” on wealth.

Ya, cause they’re property taxes and not a wealth tax. If a state wants to tax wealth, they are certainly welcome to do so but a person should not have to pay more for the same acre of property simply because they might have more money in the bank.

This is another program where you can capitalize on the ignorance and innumeracy of the average voter

Oh good grief. So should a person pay a higher sales tax for the same gallon of milk simply because they might have more in their fidelity account than the person standing behind them?

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Ya, cause they’re property taxes and not a wealth tax. If a state wants to tax wealth, they are certainly welcome to do so but a person should not have to pay more for the same acre of property simply because they might have more money in the bank.

And even so, property taxes in effect end up scaling with wealth anyway. Because wealthy people tend to have larger, more expensive, homes. And they pay higher property taxes, at least the ones based on value.

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