New Property Tax Limit to Take Effect in Texas in 2024
The Property Tax Relief Act, also known as SB 2, will see a significant change come January 1, 2024. Section 4 of the law, which was approved by a majority of voters during the November 2023 election, will come into effect next year.
One of the key provisions of Section 4 is a 20% limit on the assessed value of properties that do not have a homestead exemption. This means that the assessed value, which determines the amount of property taxes a homeowner must pay, will not be able to increase by more than 20% from the previous tax year.
“The 20% limit is important because it directly impacts how much money you pay in property taxes,” explained Albert Uresti, the Bexar County tax collector. This limit will only apply to properties worth less than $5 million and primarily affects businesses and rental properties that do not qualify for the homestead exemption.
The implementation of this new limit aims to provide relief to property owners who have seen their property taxes skyrocket in recent years. The 20% cap will provide a level of predictability and stability for property owners, particularly those who do not have a homestead exemption.
With the upcoming implementation of Section 4 of SB 2, property owners, particularly those in the business and rental sectors, can expect a degree of protection from excessive increases in property taxes. As the January 1, 2024 deadline approaches, property owners are urged to familiarize themselves with the changes and how they will impact their financial obligations in the coming year.