Tax Environment
"Speaking of taxes, a recent report ranks Texas 43 rd on the list of state-by-state tax environments. Hey, not to worry. Number One is the worst.

The group is called the Tax Foundation. Its 2008 study evaluated state and local taxes paid by each state’s residents. It then divided the amount by total state income. This gave them a method to measure the state’s tax burden on its residents.

According to its report, Texas taxpayers pay 8.4% of their income in state and local taxes (this includes taxes paid to other states). The dollar amount is $3,580 per capita. New Jersey residents are the most burdened. They pay 11.8% of their income in state and local taxes. Nationally, citizens on average paid 9.7% of their income in state and local taxes.

Drilling down further in the tax burden numbers, Texas residents came out well on another part of the spectrum. For instance, Texans paid $1,498 per capita in taxes to other states. But the good news is that, Texas collected $2,082 per-capita in taxes from non-residents. A strong state economy helps swing this balance in favor of Texas residents.

All of this is important – especially for the decision-makers around this nation who are making long-term plans on where to invest in their company’s future. Boil it down to the basics: A company looking to re-locate or to expand its operations – and thereby create jobs – ought to put Texas at the top of its list.

The cold, hard reality is this:a company will benefit by operating in an economic environment that is among the best – some say the best – in the nation. And a company’s employees will benefitby keeping more of their wages in their jeans. Win-win. "

Quote from: Neal Spelce Report - 8/2008

Homestead Exemption.
After you have closed on your home and have lived in it on January 1 of the following year, you become eligible for a "homestead exemption".

You must file for this exemption by sending in a form to the Appraisal District. This will entitle you to a reduction in property tax for as long as you live in the home. It does not apply to any other real estate that you may own.

On a $100,000 valuation you would save about $300 per year.

Also, Texas homeowners enjoy a 10% cap on annual tax increases on their homestead property. The taxable value cannot increase by more than 10% under your ownership.

Other exemptions include the "over 65," "disabled homeowner" and "disabled veteran." It is important to send in your homestead form, so that you get both the tax reduction and start the 10% cap.