What you wanted to know about Texas' property tax relief plan
NORTH TEXAS (CBSNewsTexas.com) - We've talked a lot about property taxes this year. As you likely know, there is now a plan to get relief for Texas homeowners.
We've covered the details of the $18 billion package. But it's a complicated topic, and there have been so many changes. Some of our viewers still had questions.
Jack Fink answers three of those questions below.
What prevents school districts and municipalities from increasing the tax rate to cover the shortfall from the increased exemptions?
- Rich from Fairview
Homeowners have a variety of protections. Back in 2019, the state legislature passed a law preventing municipalities from raising property tax levies on existing properties by more than 3.5% without holding an election.
School districts can't increase property tax levies on existing properties by more than 2.5% without going to the voters first.
In addition, this year the legislature passed a law that will cap property appraisal increases on non-homestead properties, including commercial properties, to 20%. This is a pilot program for three years. Right now there is no limit on property appraisal increases.
Where do renters stand? Will we be getting our tax rebate?
- Gabrielle
Renters will not be receiving any property tax rebates. Some Democratic state lawmakers proposed a rebate from the state, but that was not part of the deal worked out between Republicans in the House and Senate.
Some lawmakers said they believe renters could save money if landlords passed along some of the savings in property taxes they receive. Speaker Dade Phelan told CBS News Texas that if property taxes are lower, developers may build more apartment complexes, increasing competition, and perhaps lowering rent.
But other lawmakers say there is no proof of this and point out that the state could not require it.
How will tax relief work for people over 65 whose taxes have been frozen for over 10 years? During this time, our property valuation has more than doubled. Will there actually be a tax reduction for us?
- Charles
Homeowners over 65 will benefit in a couple of ways.
First, the state legislature approved a law this year that will increase the homestead exemption. Voters will have to approve this in November because it will require a change to the Texas Constitution. This will lower property tax bills even though school property taxes have been frozen for homeowners over 65, and even with some municipalities already providing their own exemptions on their property taxes.
The second way seniors will get a tax break is through a law passed in 2021. It reduces school maintenance and operations property tax rates by replacing them with taxpayer dollars collected by the state.
How much could you save?
CBS News Texas has created a tool that calculates the estimated difference between what you paid on school property taxes in 2022, and what you would have paid if the approved tax relief package had been approved and in place. Just enter your property value and select the school district you pay taxes to below.
It's important to note, this is a calculation that only takes into account the homestead exemption and school tax compression. You may apply for other exemptions.
