Property:
Texas: New Law Includes Tax Rate Compression and Three-Year 20% “Circuit Breaker” on Appraisal Increases
S.B. 2, signed by gov. 7/22/23. New law makes various property tax-related changes to the Texas Education Code and Texas Tax Code, such as:
For the 2023-24 school year, the “maximum compressed rate” (i.e., the tax rate at which a Texas district must levy a maintenance and operation tax to receive the full amount of the Tier 1 education allotment) for Texas school district property taxes is reduced by $0.107;
Limits certain real property tax appraisal increases of non-homestead property (e.g., rental houses, commercial retail, or business properties valued at no more than $5 million) to a 20% increase, plus the market value of any new improvements to the property during the year, wherein school districts are entitled to additional State aid to account for the reduction in property taxes as a result of these amendments; and
Raises the Texas homestead exemption for school district residences from $40,000 to $100,000.
See forthcoming Multistate Tax Alert for more details on the various Texas property tax-related law changes included in this legislation, and please contact us with any questions in the meantime.
30 Rockefeller Plaza New York, NY 10112-0015 United States
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 peopleworldwide make an impact that matters at www.deloitte.com.
