As Texas’ population boom fuels demand for more housing, the property values that drive tax bills are also rising. State lawmakers this legislative session want to slow the increase in property taxes that Texans pay each year — something they’ve been trying to do for years with little success.
That’s because property taxes are a huge revenue stream for local governments, whose officials say limiting their tax collection authority could hamstring what they budget for first responders, roads and other essential services.
Simply determining how much a Texas property owner owes in taxes is a complicated process involving multiple government entities — mainly cities, counties and school districts — and the final tax bite is largely determined by the appraised value of a property set by a local appraisal district.
As legislators prepare to spend the next several months debating how to keep property taxes from rising so fast, here’s a look at the process that determines how much property taxes Texas landowners owe their local governments each year.
Note: Because the appeal process can be expensive and involve attorneys’ fees, most property owners going this route are businesses.
Source: Texas Tribune research
Coming Thursday: A look at how local governments’ revenues determine tax rates.
The 86th Legislature runs from Jan. 8 to May 27. From the state budget to health care to education policy — and the politics behind it all — we focus on what Texans need to know about the biennial legislative session.