Each year, Texas homeowners receive their appraisal notices of their property’s value. When reviewing your appraisal notice, I hope the following information, which highlights some of the changes made by the legislature, will be helpful to you.
Property Tax FAQ
By law, and consistent with the state’s Constitution, the appraisal district must estimate your property’s value as of January 1, from the data and information provided prior to that date. Keep in mind that this is just an estimate, not a property tax bill.
The appraisal process needs to be improved. Currently there can be adjustments on appraisals from physical damage, for example in the aftermath of a hurricane, but not economic damages during a pandemic. I am working on legislation to address this next session.
I also plan to file legislation again to lower the current appraisal cap from 10% down to 5% and an elected Appraisal Review Board (ARB), which are the individuals you appear in-front of during a tax value protest.
2. I thought the legislature cut property taxes last year. What did you do on property taxes last session?
This new legislation slows the pace by which your property tax bill can grow each year and limits local cities, counties and school districts from having more revenue than 2 1/2 to 3 1/2% instead of the 8-11% they’ve been receiving each year. Because local entities can have less of your tax money, you keep it. And rising appraisals can no longer be used as a weapon against you. In the past a higher appraised value has resulted in a significant increase in your property tax bill, with the changes last session, you should be better protected against those increases.
3. What are the new limits on rate increases?
For that city, county or school to have more tax revenue than what inflation would allow, an election would have to be called so that you the taxpayer would be able to agree or deny that request. The legislation creates incentive for local governments to cut rates. For instance, Conroe ISD cut your tax rate 4 cents after the 2019 property tax bill was passed, and additional cuts should occur in 2020. Again, this historic property tax reform from last session limits the percentage of new revenue local governments can have allowing you to keep more of your hard-earned money. Rising appraisals will no longer be as expensive as they were in the past.
4. How do I tell if my taxes would go down, even if my appraisal went up?
On your tax bill, you can see what the school tax rate was and compare to last year’s taxes. After passing SB 2 last year, schools have incentive to lower their rates. Local government determines how much you pay based on the rate, not on your appraisal.
5. Can I protest my taxes?
Yes. Once you receive your appraisal notice, you can follow the appraisal district’s protest instructions included with the notice. The yearly deadline to initiate a protest is May 15. I encourage homeowners to protest and if you need assistance with this process, please email me at [email protected].
6. Why can’t my tax rate be frozen at the previous year levels?
The Texas Constitution and state law requires properties to be assessed at market as of January 1. With the property tax reform mentioned above, local homeowners have already seen tax rates cut in 2019, and will see additional rate cuts in 2020. Freezing property values at 2019 levels is not only unconstitutional, it would also cost Conroe ISD, as an example, $30-35 million in revenue, reversing their plans to cut the tax rate and instead would cause them to raise taxes for the first time in decades.
This goes back to the local government setting tax rates, which determine your bill. This is not pro-taxpayer. Further, Governor Abbott has said that he will not allow a freeze on valuations at 2019 levels. Tax rates are set by the local entity: cities, counties and school districts. Those local entities will determine if your tax bill goes up or down. Texas families always have to tighten their belts and budget accordingly, and the government should be no different during this economic recovery and always.