Issues

Historic property tax relief enacted by the legislature during the last session benefited Texas homeowners by reducing their ad valorem taxes by one-third. In return, the state took on greater responsibility in funding public schools. This amount has been covered by $8 billion in the Property Tax Relief Fund, which is comprised of revenue from taxes on cigarettes and used vehicle liar's affidavits, the newly reformed franchise tax (which I will talk about later) and $6 billion from surplus general revenue.

Legislators also extended property tax cuts to seniors and disabled homeowners. These two groups were originally excluded from the reductions because their property taxes were already frozen at a certain rate. While the freeze was intended to prevent these homeowners from rising taxes on a fixed income, it now also applies to a tax decrease. In May, voters approved the constitutional amendment that would allow this tax cut to be extended to seniors and disabled homeowners.

Now it is that time of year where local taxing units must adopt their property tax rates. The legislature has adopted guidelines that ensure the public is aware of any changes in their tax rate. Circum¬stances may force appraisal districts or taxing units to alter their timetables, but the state's property tax code does provide a general framework for tax activities.

Just for a review, let's look at a general timeline for how property tax rates are calculated. The chief appraiser of a central appraisal district sends notices of appraised values to property owners by May 15. Between July 20 and July 25, the appraisal review board approves the records of the appraisal values and the chief appraiser certifies the approved appraisal roll to each taxing unit. By August 7, a taxing unit publishes its notice of effective and roll¬back tax rates.

It is usually during the months of August and September that a taxing unit adopts its budget according to its fiscal year. After adopting the budget, the unit adopts a tax rate. That brings us to today, October 1, that a taxing unit must adopt its tax rate or 60 days after the taxing unit receives the appraisal roll, whichever date is later. Then the tax assessor prepares and mails tax bills some time in October.

As taxpayers, I encourage you to be engaged in this process and to be aware of how your tax bills are being calculated. Next session, we will look at appraisal and revenue cap issues to control state and local government spending, and to further ensure that property tax cuts remain intact. The legislature will revisit the recommendations released last year by the Governor’s Task Force on Appraisal Reform, which provide guidance on how to address Texans’ continuing concerns over skyrocketing property appraisals.