How Tax Relief Legislation Shields You Against A Significant Increase In Your Property Tax Bill?
6/26/2021

In Texas, property taxes are out of control. It is unacceptably possible for a person to be taxed out of their house due to rising property taxes. The Texas legislature must find a way to enact substantial reforms that reduce property taxes while maintaining classroom spending. I am delighted to support House Bills 59 and 958, which will reduce property taxes by changing school funding for upkeep and operations. These bills use two different techniques to achieve the same goal, and I will support whatever bill makes it through the legislative process to help homeowners."

There is a  need for severe improvements to Texas' high property taxes on several occasions. Despite the economic worries raised by the COVID-19 epidemic, HB 59 and HB 958 take critical efforts to make this a reality.

 

How Tax Relief Legislation Shields You Against A Significant Increase In Your Property Tax Bill?

Read more to learn about how Texas legislation shields you against property tax increases.

What Exactly Is Tax Relief?

Tax relief refers to any government program or policy initiative to lower the amount of taxes paid by individuals or businesses. It could be a universal tax cut or a targeted program that benefits a specific group of taxpayers or helps the government achieve a specific goal.

What Makes You Eligible For Tax Relief?

The IRS examines your ability to pay, your income and expenses, and how much money you have in assets when determining whether you qualify for tax relief through an offer in compromise.

Tax Relief Legislations

For a long time, tax relief has been a primary concern for Texas property owners and policymakers. As a result of the combined efforts of multiple blue-ribbon committees and task forces, the long-awaited public policy aim was eventually realised.

Some of the amendments are summarised briefly below:

  • The legislature approved a cap on how much homestead appraisals might rise each year in a 1997 amendment to the state constitution. On January 1, 1998, this took effect. Homestead exemptions were raised from $5,000 to $15,000 under the same amendment.

  • Additional improvements were triggered by the Texas Supreme Court's decision that the school finance structure was unconstitutional. Over the course of two years, a 2006 law cut school district maintenance and operations (M&O) tax rates by one-third. It also tried to make up for the lost revenue by imposing a bigger state franchise tax, raising cigarette tax rates, and increasing motor vehicle sales tax revenues.

  • The Travis County District Court, like others before it, determined in August 2014 that the present school finance structure is unconstitutional. To achieve the state's educational standards, many districts must levy the highest tax rate. As a result, the court concluded that the statewide property tax rate cap is a de facto state tax. The case has now been transferred to the Texas Supreme Court. Further tax revisions may be enacted as a result of the court's findings.

  • The city of Austin recently filed a lawsuit challenging the property tax appraisal system and the processes for challenging valuations. It claims that they benefit commercial property owners disproportionately and that the tax burden is passed to homeowners as a result.

Local governments rely heavily on property taxes to stay afloat. Despite this, attempts are undertaken to reduce the load on homeowners while staying within budgetary constraints. 

Is A Tax Deduction Available For Natural Disasters?

  • If your property is damaged or destroyed as a result of a declared catastrophe, you can deduct the loss on your federal income tax return for the year in which the disaster happened. You can also deduct the loss on your tax return for the previous year. You can pick which of those two tax years offers the best tax benefit,However, any insurance reimbursement you receive cannot be deducted from your taxes.

  • In a declared disaster region, the IRS has the authority to expedite refunds due to taxpayers. According to FEMA, this can be beneficial to individuals because a refund is an immediate source of cash that does not need to be repaid and does not require an Individual Assistance declaration.

  • For taxpayers who live or operate a company in the disaster area, the IRS may also postpone certain tax filing dates.

What Factors May Cause Real Property Taxes To Rise Or Fall?

One of the most important reasons for the increase in property tax, and one of the most controllable reasons, is the increase in property value caused by house improvement. In the next assessment, adding a home office, swimming pool, or increasing the value of a house will undoubtedly increase its value. Since the appraisal determines the value of the house, and the property tax is based on this value, a higher appraisal means a higher tax bill. Other improvements, including adding garages or sheds or improving fences, may also lead to higher appraisal values. If the taxpayer objects to the increase in the assessment, he can file an appeal and request a reduction in the assessment amount.

What Causes A Decrease In Property Taxes?

When the value of your home rises, so do your taxes. If property values rise too quickly, the government may change its assessment or tax rate to ensure that people are not overcharged. Of course, if the value of real estate falls, the opposite effect occurs, and real estate property taxes fall.

When Building A Home, How Can You Keep Taxes Low?

How to Save Money on Your Property Taxes

  • Learn about Your Tax Bill.

  • Request a copy of your property tax card.

  • Don't construct anything.

  • Curb Appeal should be limited.

  • Investigate Your Neighbors.

  • Allow access to the assessor.

  • Exemptions should be sought.

  • Your Tax Bill Should Be Appealed

Why Are Taxes On New Construction Higher?

Property taxes on new-construction homes are typically higher than on comparable-sized older properties in the same neighbourhood. And, because property taxes tend to rise over time, your home may become more expensive to own in the long run.