Posted by
Carol Knott

No more HOA Fees in The Woodlands

Many residents of The Woodlands may be confused at the new township tax and I certainly don't pretend to know all the answers. However, I do have a little insight I hope to share with current residents regarding the new tax.

The Woodlands Township adopted a property tax levy of 32.8 cents per $100 of taxable value. The 2010 budget will consolidate the services of the Community Associations of The Woodlands and The Woodlands Township under one operating structure effective January 1, 2010. The Township’s property tax levy will replace the assessments of the Community Associations of The Woodlands. Most Woodlands residents know this information, having read it and having received their current tax bills.

Typically property taxes are paid in arrears. This means that when you get a bill at the end of 2009 and make your tax payment (even if after the first of the year 2010), it is for the taxes that accrued in 2009. For the most part, that is still true; however, the Township Tax which replaces the HOA assessment is paid upfront for the coming year. It will always be paid upfront even though it is a tax. Homeowners who escrow their tax payments with their mortgage companies may find that they have an escrow shortage in 2010 after the mortgage company pays the tax bill. Typically mortgage companies will ask homeowners to make up this shortage as a lump sum or divide it out over the year. Do not be surprised if this happens to you in 2010. Keep in mind that homeowners typically have paid the HOA fees to The Woodlands out of pocket as most mortgage companies do not include this fee in the tax escrow. Since homeowners have paid this out of pocket in the past, the money is basically a wash.

Please feel free to contact me if you have questions. I may not have all the answers but I will gladly see if I can put you in touch with the correct source. Keep in mind that the good news is that the new property tax is tax deductible on your income taxes!

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Post Category: Housing Market, General, Property Taxes

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