Bay Area Edition | July 2023

2023 HOME EDITION

COMPARINGPLANS The state Senate and House proposed two dierent plans to address property appraisal reform. Both chambers eventually proposed a preliminary compromise plan, which Gov. Greg Abbott signed July 22. SOURCE: GALVESTON COUNTY TAX ASSESSORCOLLECTORCOMMUNITY IMPACT

previously proposed. Additionally, the compromise includes maintaining the annual appraisal increase cap on home- steads at 10% whereas the House proposed reducing it to 5%. How- ever, the compromise also calls for allowing 20% appraisal caps on other properties besides homesteads during a three-year trial period. Today, no such cap exists. “That is a big change,” Johnson said, noting business owners will benet with such a cap in place. “This will help a lot of people.” Johnson said such a change could potentially be a boon for the real estate market because it would oer caps on appraisals for properties other than a resident’s primary residence, and those protections would encourage people to buy more properties, Johnson said. “I believe you’d be bringing people into a market that had been reluctant because right now there’s no protec- tions for them,” she said. Johnson said she still prefers the House’s original plan because it would result in greater savings for homeown- ers. However, the appraisal cap for

HOUSE PLAN

SENATE PLAN COMPROMISE PLAN

Maintain homestead cap at 10% but add a 20% cap on additional properties

Cap on annual property appraisal increases Proposed school district tax rate cut Proposed homestead exemption Projected 2028 taxable property value Projected 2028 school district tax bill

Maintain homestead cap at 10%

Reduce homestead cap to 5%

Reduce by 16.2 cents

Reduce by 10 cents

Reduce by 10.7 cents

Maintain at $40,000

Increase to $100,000

$381,173

$431,468

$3,095

$4,039

$3,978

NOTE: HOME VALUES ABOVE ARE BASED ON A HOME VALUED AT $300,000 IN 2022 THAT INCREASES TO THE CAP EACH YEAR, MINUS THE HOMESTEAD EXEMPTION. SCHOOL DISTRICT TAX BILLS ARE BASED ON THE AVERAGE TEXAS SCHOOL DISTRICT TAX RATE WITH REDUCTIONS IN EFFECT ONLY IN 2023 AND 2024.

properties other than homesteads in the compromise plan is a step in the right direction, she said. “That 20% is a start, and now we just need to take it to the next step,” she said. As part of the eort, House Speaker Dade Phelan on June 20 announced the Select Study Committee on Sustainable

Property Tax Relief, which includes 13 House members and three members of the public, including Johnson. The committee is considering issues that aect property taxes. Additionally, the group is study- ing the possibility of limiting taxable value and increasing home- stead exemptions to maximize

homeowners’ savings, eliminating maintenance and operations taxes by 2035, and reducing the tax burden of appraisal increases on property, Phelan said in the announcement.

For more information, visit communityimpact.com .

No Private Mortgage Insurance (PMI)

Ready to be a homeowner? Our Made For You Mortgage is designed to help you get the home you want. Plus, our experienced mortgage representatives will walk you through the entire homebuying process, from start to close. $ 0 DOWN. 100% HOME.

100% Financing Available

Reduced Closing Costs

$0 Down Payment

Voted Best Mortgage Lender for nine years by The Galveston County Daily News’ Readers

SCAN ME

Online, Video Banking, or at a branch near you! 3 Convenient Ways to Apply:

Applicants must have a minimum of 3 years work history in the same industry. Maximum loan amount is $400,000. Must have a credit score of 700 or higher and a debt-to-income limit of 43%. Offer subject to change or discontinue without notice. Rates and terms determined by borrower’s credit qualifications. Subject to membership eligibility. NMLS ID: 408167

800.231.6053 | AMOCOfcu.org

BAY AREA EDITION • AUGUST 2023