Texas-Sized Property Taxes
They say that everything is bigger in Texas, and if you own a home in this great state, you've seen your property tax bills increase right along with your property values. The good news is that Texas homestead owners could be seeing property tax bill reductions in the near future.
A major bill was passed in the Texas House and Senate this summer that will allocate $18 billion of the Texas budget surplus to reduce school district property tax rates and increase homestead exemptions for homeowners.
Proposed Property Tax Cuts
Proposition 4 proposes the following:
- The state will provide additional school funding which will decrease ISD tax rates by 10.7 cents
- Increase homestead exemptions to $100,000 for Texas homestead owners (up from $40,000), and additional adjustments that will help protect senior homeowners (65 and older) and disabled homeowners from being priced out of their home.
- A 3-year pilot project limiting the growth in appraised property values (20% appraisal cap) for non-homestead properties with appraised values of $5 million or less. This includes second home properties and franchise / small business properties that do not qualify for homestead exemption, beginning with the 2024 property tax year.
What Does That Mean For Texas Homestead Owners?
It’s estimated this will help save the average Texas homestead owner by more than $1,200 and help homeowners over 65 or with disabilities save an average of more than $1,400.
For this Texas-sized property tax relief to take effect, Texas voters MUST approve this constitutional amendment – known as Proposition 4 – on the November ballot.
Curious About Your Property Value?
Texas property values have remained steady this year despite fewer home sales. If you're curious about your home's value, about homestead exemptions, or have other real estate questions, please call me at 713-568-6855 or email me at [email protected].
