$15 billion pledged for property tax relief
It’s up in the air how much will be slashed from the average Texas homeowner’s bill, but one proposal is estimated to amount to a $300 reduction
Last week, Texas lawmakers revealed plans to earmark $15 billion for property tax relief for homeowners, though it’s yet to be seen exactly how much that will wipe off the average bill.
One possible solution, and a priority of Lt. Gov. Dan Patrick’s, would be to increase the state homestead exemption for school property taxes.
The exemption is available on a taxpayer’s primary residence and currently offers to knock $40,000 off the home’s value for tax purposes. Patrick and the Senate are proposing raising that to $70,000, estimated to save the average homeowner an additional $311 a year, according to Republican state Sen. Paul Bettencourt.
Amid rising inflation, the prospect of property tax relief is one that’s caught the attention of thousands of Texans. At the same time, it’s a problem that historically has been difficult for lawmakers to assuage. As Texas home valuations have climbed in recent years, so have tax bills, and reforms enacted by the Legislature don’t always mean a tax cut. A series of relief efforts since 2015 finally led to a small tax cut for many Texans in last year’s bill.
A February 2020 poll by the Texas Politics Project at the University of Texas at Austin found that 54 percent of Texans thought they paid too much in property taxes. It came just about a year after lawmakers had capped how much yearto-year property tax revenue cities and counties could collect as well as injected state funds into school property taxes to make up for it.
There is still a lot up in the air when it comes to how lawmakers may try again this year to slash some of your property tax bill. For now, here are answers to some of readers’ top questions about property taxes.
Who is exempt from paying residential property taxes in Texas?
Except under a select few circumstances, most residential property tax relief in Texas just reduces tax bills, but does not exempt homeowners from them entirely, with a few exceptions.
The surviving spouses of members of the U.S. armed services or first responders who were killed or fatally injured in the line of duty are eligible for a total exemption if they have not remarried.
Also eligible are veterans who receive 100 percent disability compensation from a servicerelated disability who are deemed by the federal government to be unemployable. When they die, their spouses continue to receive the benefit if they keep that home as their primary residence.
The rest are partial exemptions. The most common one is a general residence homestead exemption, which under state law requires school districts to allow homeowners to take $40,000 off the home’s value for tax purposes. Cities, counties and other local districts can set their own exemption amounts, but it must be no more than 20 percent of the property’s value and no less than $5,000.
Another common exemption applies to seniors and people with disabilities. Under state law, any Texan over the age of 65 or with a disability is eligible to receive an additional $10,000 homestead exemption.
Same as with the general exemption, cities, counties and other local districts set their own 65-plus and disability exemption amounts, but state law requires they be no less than $3,000.
Another major benefit for people in these demographics is that under the Texas Constitution, their school property taxes on their primary home are frozen at the amount they paid upon turning 65 or when they became eligible for a disability exemption.
Note that if these homeowners make major improvements to their residence, such as an addition, their tax ceiling may rise to reflect that new value.
Homeowners must apply for the benefits mentioned above through their local appraisal district or tax assessor-collector’s office. See below for contact information. The deadline is generally April 30 with a grace period of two years after the delinquency date, according to the Comptroller.
When are property taxes due?
In most cases, Texans must pay their property taxes by Jan. 31 and will be considered delinquent if they aren’t paid by
Feb. 1, according to the Texas Comptroller’s office.
Penalties and interest begin to accrue after Feb. 1, at which point the tax collector will apply a 6 percent penalty and 1 percent interest.
After July 1, the penalty increases to 12 percent, and interest is charged at the rate of 1 percent per month with no maximum.
How do I pay my property taxes? Can I pay them online?
Specific questions like this should be directed to your county. To find their contact information or website, check out this directory that includes every Texas county appraisal district or tax assessor-collector’s office.