Texas Taxes

In May 2006, the Texas Legislature passed comprehensive school-finance reform that lowers school property taxes by about $7 billion over the next three years. Well, how will this actually work you ask.

The rate for public school taxes will be reduced $0.17 per $100 of value for the 2006 tax year and $0.33 for the 2007 tax year.

• The vast majority of school districts had reached the tax-rate cap of $1.50 per $100 of value. That $1.50 rate will go down to $1.33 for the 2006 tax year and down to $1 for the 2007 tax year.

• The $1.50 cap applies to school maintenance and operations. A school district can exceed $1.50 if voters in that district pass bonds to pay for new schools and facilities. Amounts approved by local voters for school bonds are not affected by the tax cut.
  

• Tax rates and appraisals are separate components of your tax bill. When appraisals jump significantly, taxing authorities—like school districts, cities, and counties—can lower their tax rates, so that suddenly higher appraisals don’t equate to suddenly higher tax bills.

• If you believe your home has not been fairly and accurately appraised, you can file a protest to be heard by the appraisal review board. (The deadline for filing protests typically is May 31 each year.) If you disagree with the appraisal review board’s decision, you can submit your case to binding arbitration.