Throughout the latest administration, Dallas residents have witnessed significant tax reform movements that have had an impact on property taxes throughout the state of Texas. Recently, our Gov. Greg Abbott signed a property tax plan that has the goal of lightening the load that property owners face during tax season.
If you haven’t already heard about the Texas Property Tax Reform and Transparency Act of 2019, here are all of the main points you need to know as we enter a new era of property tax relief.
What is the Texas Property Tax Reform and Transparency Act of 2019?
The Texas Property Tax Reform and Transparency Act of 2019 takes full effect on January 1, 2020. This act focuses on property tax relief for homeowners and businesses. As a whole, the bill will create a revenue cap for cities and counties that will slow down property tax increases.
If you pay property taxes in Texas, knowing these rules, dates, and laws can help you understand your rights as a taxpayer and property owner.
Why Taxpayers Needed This Passed
Any Dallas homeowner knows that property taxes have been on the rise throughout the state. On top of that, transparency really hasn’t been present when taxpayers attempt to appeal a property tax bill.
This act is necessary because not only will it pump the brakes on rising rates, but it also helps make the appeal process more streamlined for the average county citizen.
Key Provisions of the Property Tax Reform Act
With the overall results of the property tax reform bill having a positive impact on property owners in Texas, it’s no wonder the Governor stands behind this movement. Here’s a closer look at some of the key provisions that make this reform worth praising!
Capped Property Tax Revenue Growth
One of the biggest reasons for soaring property taxes has been unchained property tax revenue growth. The new Act is set to cap property tax revenue at 3.5 percent at the city and county levels. The main effort of the bill is to slow growth of property tax bills for taxpayers in these areas.
Although this will slow growth as a whole, the entities could still raise revenue from property taxes with a call for an election.
Transparency for Those Seeking Appeals
Property tax appeals are important because sometimes the county gets its valuation information wrong. In the past, property owners had to dig for help with assistance in appeals. Now. appraisers must have a list of people available who can provide assistance to people looking for a successful appeal.
Will the Act Reduce Your Property Tax Bills?
Although this tax reform will not directly reduce tax bills, it will create transparency through an online database that informs taxpayers of any hearings regarding tax rate changes. This will eliminate the current element of surprise people face when opening their property tax assessment.
Let The Hegwood Group Answer Your Property Tax Reform Questions
Any change in tax reform can be confusing to the average home or small business owner. If you have questions about the recently passed property tax reform bill, The Hegwood Group can help. Get in touch with us today to find out more about this bill and the property tax consultant services we provide to the city of Dallas.