WICHITA FALLS (KFDX/KJTL) — Since 2017, property taxes rose more than 20 percent per the Texas comptroller’s office, but a resolution looks to reduce the amount of property tax you pay.
House Joint Resolution 2 is not enacted yet as it is a constitutional change and needs to be voted on in November.
Wichita Chief Appraiser Lisa Stephens – Musick spoke about how it will benefit homeowners.
“The homestead exemption, which is a reduction in the value of your home state property for school taxes only,” said Stephens-Musick. “Senate bill two is increasing that $200,000, which is a good thing for homeowners.”
Unlike past tax cut proposals, this one includes non-homestead properties. Such as businesses, rentals, and commercial properties. Non-homestead are capped at a 20 percent taxable value per year.
“Where with the homestead cap for residential, your taxable value can only increase 10% for the new non-homestead pass portion of this,” said Mark Bruce. “It’s going to limit it to a 20% increase of your taxable value per year.”
In lamens terms, the market value of the owned properties increases, but the taxable burden maxes out at 20 percent for businesses valuing less than $5 million. Additionally, franchises will see an exemption if their annual revenue is less than $2.47 million.
If the bill is passed in November, property owners will see a decent chunk of their revenue back in their pockets. How much money is still up for debate as tax rates set this standard.
“It’s going to fluctuate based, of course, on the tax rate once the tax rates get set, but we anticipate seeing a tax rate decrease based on the value increases and the caps that the state has put on the jurisdictions from increasing from year to year,” said Bruce.
Overall, these tax cuts are still in the works. Voting for the change occurs in November, and Stephens-Musick and Bruce both believe this will give great benefits to consumers.