Legislative Blog
J.B. Williams, J.D.
Property Tax Relief - 88SB2 - Proposition 4 - YES
A Blog about Property Tax and Sales Tax
A Bit of Background
The following backgrounds help summarize the author's views on both the general topic: Texas and more specifically Property Tax and Sales Tax as it relates to that topic.
Brief Summary of Texas
Texas is truly a Republic. There are a multitude of items that to modify the state constitution must be modified. So there are times when Constitutional amendments are on the voting ballots. While I sometimes abhor the wording, the concept that all of those legally able to vote in Texas must vote on the change is a good one. And bills in Texas are generally short, making it easier for everyone to understand.
Summary of Property Tax and Sales Tax
Blogs under this heading will focus on property taxes or sales taxes within Texas. They may hit upon other taxes that are implemented for specific areas. I'd love if our state could eliminate property taxes and go to a pure sales tax system. That way the more products/services you consume the more you pay. So higher earners would pay more in taxes. And food should remain a non-taxable item.
Blog Summary
This is being touted a increased homestead exemption, which it does. However, it also provides other items, including reducing the maximum school district compressed tax rate. A lot goes into the calculations but ensuring the borrowing doesn't get totally out of control is a good thing.
Property Tax Relief - 88SB2 - Proposition 4 - YES
Published: 2023-09-13
The School district maximum compressed tax rate for 2023-2024 school year is to be reduced by $.107. There are some adjustments in minor circumstances. And some school districts may be entitled to additional state aid. The 2022 tax year will be used to determine whether the district qualifies for state aid.
The school district residence homestead exemption will be raised from $40,000 to $100,000. The governing body that adopted the homestead exemption may not reduce or repeal the exemption. This will expire December 31, 2027.
Circuit breaker limitation on appraised value of non-homestead residence real property
When there is a disaster that substantially damages or destroys the real property, the valuation shall be the lesser of:
market value of the property for the most recent tax year; or the sum of:
- 20% of the appraised value of the property for the preceding tax year,
- appraised value of the property for the preceding tax year, and
- market value of all new improvements to property.
A replacement structure is not considered an improvement if it is replacing a structure rendered uninhabitable or unusable by a casualty or by wind or water damage. This is true as long as the square footage does not exceed the prior square footage; or the exterior structure is not of higher quality construction. However, these are waived if the disaster recovery program requires the changes. The cap amount is set at $5 million. This section expires December 31, 2026.
There were other changes that revolve around how and what appraisal districts must do because this must be scheduled for a vote.
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