The 88th Legislative session in Texas ushered in significant changes to property tax laws, impacting homeowners across the state. In collaboration with Gill, Denson & Company, experts in Texas property tax reduction, we’ve summarized the most crucial updates for you.
Enhanced Homestead Exemption
Lawmakers approved a relief package of approximately $5.6 billion by further increasing the homestead exemption amount. After being recently raised in 2022 from $25,000 to $40,000, the exemption saw an impressive boost in 2023 to $100,000. This adjustment results in a reduced taxable property value for homeowners, offering substantial savings on their property tax bills.
Tax Relief through Rate Compression
A substantial surplus of $7.1 billion was allocated to school districts to reduce property tax rates through a strategic “buy down.” This translates to a direct reduction of 10.7 cents per $100 in property value for homeowners’ school maintenance and operating (M&O) taxes. Given that school taxes make up a significant portion of property tax bills, this compression offers tangible relief for all property owners.
Stabilizing Appraisal Caps
Introduced as a three-year pilot program, the appraisal cap initiative aims to bring stability to commercial, mineral, and non-homestead properties valued under $5 million. These properties, ineligible for homestead exemption benefits, are now protected from excessive tax increases with a cap set at 20% year over year until the program ends.
Additional Legislative Changes
Beyond direct impact changes, various updates were implemented to refine the property tax system. These include the addition of new appraisal district board seats, an increased franchise tax exemption, the introduction of an online binding arbitration filing system, and procedural updates. Most of these changes are aimed at increasing accountability and improving processes to benefit homeowners.
Consider Protesting Your Property Taxes
While these legislative updates offer immediate relief, ensuring fair taxation requires more proactivity. Mass appraisal methods used by districts can lead to errors and inaccuracies in property valuation. To safeguard against this, consider consulting a local property tax protest firm. A successful protest can lower your taxable value and subsequently reduce your tax bill even further. Protesting every year means you can potentially enjoy even more savings and have peace of mind that your property tax assessment is being adjusted appropriately for years to come.
In the face of these legislative changes, proactive engagement is crucial for fair taxation. Mass appraisal methods employed by districts may harbor errors in property valuation. To counter this, consulting a local property tax protest firm is recommended. A successful protest not only lowers the taxable value but also reduces your tax bill even further.
To assist our clients in navigating these changes, we’ve partnered with Gill, Denson & Company to offer reduced-rate protest services. Visit their website’s Get Started page and use the code YOINGCO to receive a 25% contingency fee rate. You’ll only pay if they successfully save you money!
If you have any questions and want to know more about updates in Texas property tax, reach out to Jennifer Yoingco, REALTOR® and her team, The Houston Suburb Group. They’ll help you get ready to EXPERIENCE LIVING IN HOUSTON TEXAS!
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