2023 HOME EDITION
COMPARING PLANS
The state Senate and House proposed two di erent plans to address property appraisal reform. Both chambers eventually proposed a preliminary compromise plan, which, as of press time, is awaiting approval.
originally 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. Residents seeking relief from increased property taxes from ris- ing appraisals may be able to uti- lize a homestead exemption to set a cap on the amount their primary home increases in taxable value year over year. Properties with a homestead exemption have a 10% cap on the increase in their taxable value year over year. Additionally, homestead exemptions withhold a certain amount of value from being taxed by certain entities. Homestead exemptions currently withhold $40,000 in value from being taxed by school districts. Today, no such cap exists. Resources for residents
SOURCE: GALVESTON COUNTY TAX ASSESSOR COLLECTOR COMMUNITY IMPACT
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
Increase to $100,000
$381,173
$431,468
$431,468
$3,095
$4,039
$3,978
*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.
“The exemption remains the easiest way a home- owner can reduce their property taxes by as much as 20%,” Fort Bend County Chief Appraiser Jordan Wise said in the appraisal district’s 2023 notice of appraised values. For example, a home valued at homestead
$100,000 without a homestead exemption could have increased in value to $115,000 this year, while one with the exemption would be limited to a maximum of $110,000. Residents seeking relief can nd more information on exemptions on the FBCAD online exemptions portal
or the HCAD website, depending on where the property is located. Dave Manning contributed to this report.
For more information, visit communityimpact.com .
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KATY SOUTH FULSHEAR EDITION • JULY 2023
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