Issue: Property Taxes and the Appraisal Process
Background
Often, a taxpayer’s concern with any taxing system is rooted in the belief that the person or entity is paying a disproportionate share of a tax. This is true under any taxing structure: income, property, sales, or franchise.
When it comes to property taxes, specifically, the property appraisal process is one of the elements that determine tax liability for real property. However, the appraisal process and local taxing jurisdictions’ budget processes have become increasingly convoluted and difficult to understand.
As a result, many commercial and residential property owners believe the appraisal and protest processes are not transparent, fair, or uniform across central appraisal districts.
Many property owners also believe CADs either work for, or are in cahoots with, local taxing jurisdictions. There are also some chief appraisers who believe it is their job to assist the taxing entities with raising revenue.
The Legislature has made great strides over the past few sessions to lessen the burden on taxpayers, including the passage of the Property Tax Relief Act in 2023 which allocated more than $18 billion in relief for property tax payors. This plan included over $12 billion in compression to buy down local school tax rates and increased the homestead exemption from $40,000 to $100,000.
In 2025, the Legislature moved measures to increase the homestead exemption even more, to $140,000, with an additional $60,000 for seniors and disabled homeowners.