Homeowners across the country have witnessed a sharp rise in property values over the past decade. With higher property values come higher property tax bills.
While appealing property valuations for tax purposes is often a priority in a rising market, it’s just as crucial to consider doing so if the market declines.
For those that live in Texas, new laws were passed in 2023 to provide additional relief to homeowners and other property owners. For residential homeowners, the homestead exemption on school district taxes has increased from $40,000 to $100,000. Further, there is currently a bill proposed for raising that further from $100,000 to $140,000 – it has passed in the House, but is still navigating the Senate, so be on the lookout for any further changes on that front.
Not to be excluded from tax breaks anymore, owners of commercial, mineral and residential properties — like rental homes and apartment buildings — that don’t receive a homestead exemption and are valued at less than $5 million now will have a 20% cap on their value growth each year (previously granted for three years) (1). To determine how your specific situation may be impacted, please consult your property tax professional.
Depending on the area you live in, your Astoria Strategic Wealth advisor may have resources to help you get started. Although it is possible to appeal your property tax valuations yourself, hiring a professional can potentially save you time and increase the amount of the reduction you may get. Many work on a contingency basis meaning they keep a percentage of what they save you – if the appraisal is not reduced, you don’t owe them anything.
An example of one change for 2025 tax values is Tarrant County agreed to keep all residential appraisals at 2024 levels as long as no additional improvements were made and it was not new construction. So, be on the lookout as municipalities evaluate the frequency of how and when property values are raised (or not) and the appraisal requirements.
Key Dates – Texas
Some key dates to keep in mind in the state of Texas – if you do not live in Texas, feel free to reach out to your ASW advisor, as we can help you think through how this tax impacts your plan, and what steps you might want to take per your state’s timeline:
- January 1st – Appraisal districts begin calculating the market value through various means including sending around written queries to property owners regarding recent sales in the county you live in.
NOTE: You have NO obligation to respond to these queries in Texas – the State of Texas is a non-disclosure state for all real estate transactions including leases and sales. However, some districts have access to Multiple Listing Service (MLS) data. You also DO NOT have an obligation to let appraisers into your home/property if they come in-person.
- April 1st – Property value notices to be released by the State of Texas for all properties, including the value of one’s home and the exemptions that apply.
- April 15th – Business property returns are due (without extensions).
- April 30th – Generally, the deadline to file an application for over 65 years old and/or disability exemption(s).
- May 15th – Extended business property taxes are due and deadline for all “Notices of Protest” to be filed with one’s appraisal district (or the latter of 30 days after the municipality sends out the valuation notice).
- June – Appraisal districts will send dates for an informal meeting and a formal hearing with the Appraisal Review Board (ARB).
- January 31st – Paid in arrears, property taxes for the prior year are generally due by January 31st, but one does have the option to make monthly payments to lessen the financial strain.
(1)https://www.texastribune.org/2023/11/07/texas-proposition-4-property-tax-cut/
(2) https://comptroller.texas.gov/economy/fiscal-notes/archive/2023/dec/proptax.php#:~:text=7%20ballot%2C%20taxpayers’%202023%20property,the%202023%2D2024%20tax%20year