5 New State Laws To Lower Your Property Taxes in Texas

Whether you’re a single home owner or a real estate investor, staying informed about the latest tax laws is not just advisable; it's essential. Recent legislative changes promise significant impacts on how property taxes in Texas are approached, protested, and ultimately paid. Let’s dissect the intricacies of Texas' five new property tax laws, offering insights for taxpayers, real estate investors, landlords, and property managers. With over $12 billion allocated to lower school property tax rates, which are buy and large the bulk of property taxes in Texas, and the introduction of measures such as a substantial increase in homestead exemptions, these changes are poised to reshape the Texan property landscape.

Over $12 Billion in State Funding to Reduce School Property Tax Rates

In a monumental move, Texas has allocated over $12 billion in state funding specifically aimed at reducing school property tax rates. This initiative is a direct response to the growing concerns over escalating property taxes in Texas and their impact on homeownership affordability. By lowering school property tax rates, the state endeavors to make Texas a more attractive place to live and invest, ensuring that the dream of homeownership remains within reach for its residents.

$100,000 Homestead Exemption for School Property Taxes in Texas

In another move to alleviate the burden of property taxes in Texas, the legislature introduced a $100,000 homestead exemption for school property taxes. This exemption represents a significant increase in the portion of a homeowner's value that is exempt from taxation, directly reducing the total taxable value of their property. For many homeowners, this will translate into substantial savings, reinforcing the state's commitment to making homeownership more affordable.

A 20% Circuit Breaker on Appraised Values

For non-homesteaded properties valued at $5 million and under, a new "circuit breaker" mechanism has been introduced. This essentially acts as an appraisal cap, limiting increases in appraised values to 20%. Implemented as a three-year pilot project, this measure is designed to protect investment property owners from steep, unexpected hikes in property values, thereby providing a more predictable fiscal environment for planning and investment. This is a major win to keep property taxes in Texas in check so that our state remains a desirable place to invest.

Franchise Tax Savings for Small Businesses

Recognizing the role of small businesses as the backbone of the Texas economy, the legislature has introduced savings on franchise tax as part of the property tax reform package. This initiative not only benefits small business owners directly but also contributes to a healthier, more vibrant business environment across the state.

Leveraging the New Laws for Your Benefit

These new laws represent a significant shift in the approach to property taxes in Texas, offering various avenues for property owners to reduce their tax liabilities. It's essential to stay informed and proactive, taking advantage of these opportunities to protect your investment and secure your financial future.

For those navigating these changes, it's advisable to consult with a tax professional or legal advisor to understand fully how these laws apply to your specific situation. With the right approach, these reforms can provide meaningful relief and contribute to a more equitable property tax system in Texas. You can hire a company to do this for you, like Home Tax Shield or Ownwell.

Navigating the intricacies of property tax laws can be daunting, but with these new measures in place, Texas property owners now have a robust toolkit at their disposal. By staying informed and engaged, you can take full advantage of these changes, safeguarding your assets and ensuring your property tax obligations reflect the true value of your investment.

The May 15 Deadline to File Your Property Tax Protest

Mark your calendars for May 15, 2024. This is the critical deadline for filing a protest against your property taxes in Texas. Failing to meet this deadline could mean missing out on the opportunity to challenge and potentially lower your property tax bill. It's a crucial step in the process, providing property owners with a formal avenue to contest their appraised property values and seek adjustments that reflect fair market value accurately.

How to Protest Property Taxes in Bexar County

For those looking to take action and protest their property taxes in Texas, Bexar County offers a clear process. Utilizing resources like the Bexar County Appraisal District's official website can guide you through the procedural steps, from filing your protest to understanding what documentation is needed. Engaging in this process can be a powerful tool in ensuring your property taxes are fair and reflective of true market values.

We Are Here to Help

Hendricks Property Management has been guiding investors and small landlords through successful real estate investing in Texas for over 40 years. We know how to cover the bases to make sure your new investment will remain profitable while taking property taxes in Texas into account when crunching the numbers. If you are ready to add to your portfolio, or have questions regarding the property tax appeals process or benefits, do not hesitate to reach out to us!