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How are my property taxes calculated? 7 things to know about the complicated process [1]

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Date: 2024-09-03

You may have noticed multiple news headlines about the different taxing entities – schools, city, county, hospital districts – adopting tax rates the past few weeks.

The complicated property tax system is a yearlong process that repeats every year: It starts with the El Paso Central Appraisal District appraising properties throughout the county, taxing entities determining how much revenue they need to provide services, and all of them adding up to the tax bills that go out each October.

But what are tax rates and how do they add up to your final property tax bill?

Each taxing unit adopts a tax rate that’s used to calculate how much in tax dollars to collect from property owners to operate for the next fiscal year. The calculation is heavily based on certified property tax rolls.

Most El Paso County homeowners pay taxes in the school district in which they live, the county government, University Medical Center of El Paso, El Paso Community College, and the city or town in which they live, such as the city of El Paso or the Town of Horizon City. Some homeowners in the county might also pay taxes in a municipal utility district.

Texas Property Tax System / Texas Comptroller of Public Accounts 2024

Local elected officials – county commissioners, City Council, school boards – set property tax rates and collect the revenue to provide local services. Texas does not impose a state property tax. Neither the state nor the federal government set the amount of your local taxes, nor does the appraisal district.

We took some of your most frequently asked questions about property taxes and came up with a list of seven things to know, with some links and resources we hope you’ll find useful.

How are my property taxes calculated?

Your taxes are based on three main factors: Your home valuation as assessed by the El Paso Central Appraisal District; the exemptions you claim; and tax rates adopted by the taxing entities.

Taxing entities set their tax rates as “per $100 valuation,” meaning, the rate is what is charged for every $100 of your home’s value.

A basic formula to calculate your taxes:

Your home’s valuation

Subtract your exemptions

Divide by 100

Multiply by the tax rate

Do this for every taxing entity

Add up the figures from each entity to calculate your total tax bill

What do the different tax rates mean?

Truth-in-taxation laws require most taxing units to calculate two rates after receiving a certified appraisal roll — the no-new-revenue tax rate and the voter-approval tax rate. They must publish these rates as well as the proposed rate they intend to adopt in print and online for the public to view.

Here’s what they mean:

No-new-revenue-rate: A rate that would provide the taxing entity with the same amount of revenue that it received last year from property that was taxed in both years. This does not include additional revenue from new construction.

A rate that would provide the taxing entity with the same amount of revenue that it received last year from property that was taxed in both years. This does not include additional revenue from new construction. Proposed rate: The tax rate that the taxing unit is considering for adoption.

The tax rate that the taxing unit is considering for adoption. Voter approval rate: This is the maximum tax increase allowed by law without triggering an election. Generally, it’s 3.5% above the no-new-revenue rate; for school districts, it’s 2.5% above the no-new-revenue rate.

This is the maximum tax increase allowed by law without triggering an election. Generally, it’s 3.5% above the no-new-revenue rate; for school districts, it’s 2.5% above the no-new-revenue rate. Adopted tate: The tax rate that the taxing unit voted to adopt for the current year.

When do my 2024 property tax bills go out? When are they due?

Property tax bills are mailed out every October. Your October bill is for the current 2024 tax year with rates adopted by the taxing entities this fall.

Payment is due by Jan. 31. Taxes become delinquent Feb. 1.

Where do I pay my taxes? What payment options do I have?

View and pay your taxes here: City of El Paso Tax Office

Many homeowners pay their annual property taxes through their monthly mortgage bills. The mortgage company will pay your taxes out of your escrow account at the end of the year.

You can also pay annually online, by phone, over mail or in-person at tax office locations.

If you’re having difficulty making your annual payment, contact the tax office for options such as partial payments or payment plans, but know that any amount that is unpaid by the delinquency date accumulates penalty, interest and collection fees.

How will the proposed UMC and El Paso County bonds impact my taxes?

The $396.6 million bond proposed by UMC would increase the hospital district’s portion of a homeowner’s tax bill by about $95 a year for 10 years and about $52 a year for the next 20 years after that.

would increase the hospital district’s portion of a homeowner’s tax bill by about $95 a year for 10 years and about $52 a year for the next 20 years after that. The county’s $324 million bond will be divided into five propositions on the ballot, separating project categories such as parks and recreation and the proposed county coliseum renovation. If all five propositions are approved, property owners would see a tax increase on the county’s portion of their tax bill of about $60 a year on a $200,000 home. You can see the county’s bond proposal broken down here.

When will I see the impact on my tax bill if the bonds are approved?

If the bonds are approved Nov. 5, property owners would see the county and hospital district portions of tax bills increase starting in the 2025 tax year for the bills due in January 2026.

How long will the tax increases last?

Taxes to pay off the bond debt would remain in place until the bonds are paid off – about 20 years for the county and 30 for UMC. Sometimes taxing entities are able to pay off debt sooner.

Want to learn more? Download the 2024 Property Tax Basics document from the Texas State Comptroller’s Office, visit the City of El Paso Tax Office website, or read more about property valuations and the appraisal process from the El Paso Central Appraisal District.

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[1] Url: https://elpasomatters.org/2024/09/03/el-paso-taxes-explained-property-tax-rates-valuations-bond-election/

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