Senate Select Committee for
Property Tax Reform Relief

 

LOCAL TAX BURDENS NATIONALLY
Texas has one of the highest property tax burdens in the county, with a median property
tax rate of $2.17 per $100 in property value. Only 4 states have a higher median tax rate.

Sources: CoreLogic, via Dallas Morning News

 LOCAL TAXES VS. HOUSEHOLD INCOMES
Statewide
Since 2005, city and county property tax levies have increased much faster
than median household incomes
90%
82%

80%

71%

70%

City Tax Levies

60%
50%

County Tax Levies

40%
29%

30%
20%

26%

Median Household
Income

10%
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Sources: Texas Comptroller of Public Accounts; U.S. Census American Community Survey (ACS) Historical Nominal Median Household Income,
2015 Median Income estimated using rate of growth from 2013 to 2014

 RISING VALUES, UNCHANGING TAX RATES
Statewide
Since 2005, city and county property values have risen rapidly, but their
tax rates have remained almost the same. This results in growing tax bills
for city and county taxpayers

Total Value (in

Counties

Billions)

Average Tax Rate

2005

$1,228.5

$0.532

2014

$2,060.1

$0.529

Change

$831.6

-$0.003

Total Value (in

Cities

Billions)

Average Tax Rate

2005

$856.6

$0.486

2014

$1,356.9

$0.523

Change

$500.3

$0.037

Source: Texas Taxpayers and Research Association

 VALUE INCREASES OVER THE LAST 5 YEARS
5 Major Metro Area Cities

Billions

From 2011 to 2015, the taxable values in Texas’ 5 largest Cities have
increased by 14% in Fort Worth to 41% in Houston
$225
$206.24
$205
$185
$165
$145

Houston
$145.89

Austin

$125
$105
$85
$65

$82.05
$80.59
$71.59

$45

$111.74

San Antonio

$100.34

Dallas

$90.64

Fort Worth

$48.62

$42.49
$25
2011

2012

Source: Texas Comptroller of Public Accounts

2013

2014

2015

 TAX RATE CHANGES OVER THE LAST 5 YEARS
5 Major Metro Area Cities
From 2011 to 2015, the tax rates in Texas’ 5 largest Cities have either
remained flat or trended downwards.
$0.90
0.855

0.855

$0.85
$0.80
0.797

0.797

$0.75
Fort Worth

$0.70
$0.65
$0.60

Dallas

0.63875
0.601120
0.56569

.558270

$0.55
$0.50
$0.45

0.4589

0.4811

$0.40
2011

2012

Source: Texas Comptroller of Public Accounts

2013

2014

2015

Houston
San Antonio
Austin

 TAX LEVY INCREASES OVER THE LAST 5 YEARS
5 Major Metro Area Cities

Millions

From 2011 to 2015, the tax levies in Texas’ 5 largest Cities have increased
by just over 14% in Fort Worth to 33% in Houston.
$1,400
$1,240
$1,200
$1,000
Houston

$932
$800

$800
$600
$400

Dallas
Austin
San Antonio

$654
$513
$506

$405
$388
$363

$416

$200
2011

2012

2013

2014

2015

Taxable Value and Tax Rate data provided by the Texas Comptroller of Public Accounts; Levies calculated with this data.

Fort Worth

 GENERAL FUND TAXABLE VALUE INCREASES
OVER THE LAST 5 YEARS
5 Major Metro Area Counties

Billions

From 2011 to 2015, the taxable values in Texas’ 5 largest Counties have
increased by almost 12% in Tarrant County to just over 42% in Harris County.
450
400
$392.80
350
300
250

Harris
Dallas

$275.76

Tarrant

200

$188.89
$155.83

150
100

$138.93
$137.70

$124.37
$98.20

$127.51

$95.13
50
2011
Source: Texas Comptroller of Public Accounts

2012

2013

2014

2015

Travis
Bexar

 GENERAL FUND TAX RATE CHANGES OVER THE
LAST 5 YEARS
5 Major Metro Area Counties
From 2011 to 2015, the tax rates in Texas’ 5 largest Counties have generally
either remained flat or trended upwards.
$0.55
$0.50

0.4855

$0.45
0.41923
0.4169

$0.40
0.39117

Harris
Bexar

$0.35
$0.30

Travis

Tarrant
0.296187

0.2975
0.285693

0.264
$0.25
0.2431

0.2431

$0.20
2011

2012

Source: Texas Comptroller of Public Accounts

2013

2014

2015

Dallas

 GENERAL FUND TAX LEVY INCREASES OVER THE
LAST 5 YEARS
5 Major Metro Area Counties

Millions

From 2011 to 2015, the tax levies in Texas’ 5 largest Counties have
increased by 20% in Travis County to almost 53% in Harris County
$1,800
$1,647
$1,600
$1,400
$1,200

Harris
$1,079

Travis

$1,000

Dallas
Tarrant

$800
$574
$600
$477
$400
$200

$459
$397
$379

$379
$328
$282
2011

2012

2013

2014

2015

Taxable Value and Tax Rate data provided by the Texas Comptroller of Public Accounts; Levies calculated with this data

Bexar

 City Property Tax Levies, 2005 to 2015
Year

Total Property Taxes
Levied

City Taxes Levied

City Levy as a % of
Total Levy

2005

$33,478,989,315

$4,901,791,597

14.64%

6.38%

8.09%

2006

$35,552,907,030

$5,322,985,519

14.97%

8.59%

6.19%

2007

$35,114,596,621

$5,890,306,731

16.77%

10.66%

-1.23%

2008

$38,979,969,545

$6,451,012,447

16.55%

9.52%

11.01%

2009

$40,034,355,798

$6,593,755,037

16.47%

2.21%

2.70%

2010

$40,275,451,155

$6,755,401,406

16.77%

2.45%

0.60%

2011

$40,515,816,942

$6,711,934,736

16.57%

-0.64%

0.60%

2012

$42,748,637,566

$7,067,779,921

16.53%

5.30%

5.51%

2013

$45,266,928,108

$7,324,430,806

16.18%

3.63%

5.89%

2014

$49,067,216,670

$7,789,068,440

15.87%

6.34%

8.40%

2015

$52,207,422,947

$8,380,435,861

16.05%

7.59%

6.40%

Percentage Change 2005-2015
Source: Texas Comptroller of Public Accounts; 2015 Data is subject to Revision

Annual % change in Annual % change In
City Levy
Total Levy

70.97%

 County Property Tax Levies, 2005 to 2015
Year

Total Property Taxes
Levied

County Taxes Levied

County Levy as a % of
Total Levy

Annual % change in
County Levy

Annual % change In
Total Levy

2005

$33,478,989,315

$4,772,652,208

14.26%

6.94%

8.09%

2006

$35,552,907,030

$5,339,613,542

15.02%

11.88%

6.19%

2007

$35,114,596,621

$5,836,989,949

16.62%

9.31%

-1.23%

2008

$38,979,969,545

$6,342,704,903

16.27%

8.66%

11.01%

2009

$40,034,355,798

$6,526,724,060

16.30%

2.90%

2.70%

2010

$40,275,451,155

$6,567,069,864

16.31%

0.62%

0.60%

2011

$40,515,816,942

$6,742,926,165

16.64%

2.68%

0.60%

2012

$42,748,637,566

$7,064,653,310

16.53%

4.77%

5.51%

2013

$45,266,928,108

$7,558,391,626

16.70%

6.99%

5.89%

2014

$49,067,216,670

$8,114,998,194

16.54%

7.36%

8.40%

2015

$52,207,422,947

$8,696,383,818

16.66%

7.16%

6.40%

Percentage Change 2005-2015
Source: Texas Comptroller of Public Accounts; 2015 Data is subject to Revision

82.21%

 Special District Property Tax Levies, 2005 to 2015
Year

Total Property Taxes
Levied

Special District Taxes Special District Levy as
Levied
a % of Total Levy

2005

$33,478,989,315

$3,609,629,697

2006

$35,552,907,030

2007

Annual % change in
Special District Levy

Annual % change In
Total Levy

10.78%

7.14%

8.09%

$3,972,185,910

11.17%

10.04%

6.19%

$35,114,596,621

$4,513,060,409

12.85%

13.62%

-1.23%

2008

$38,979,969,545

$4,952,734,969

12.71%

9.74%

11.01%

2009

$40,034,355,798

$5,133,820,497

12.82%

3.66%

2.70%

2010

$40,275,451,155

$5,394,690,759

13.39%

5.08%

0.60%

2011

$40,515,816,942

$5,038,666,683

12.44%

-6.60%

0.60%

2012

$42,748,637,566

$5,543,422,373

12.97%

10.02%

5.51%

2013

$45,266,928,108

$5,318,507,423

11.75%

-4.06%

5.89%

2014

$49,067,216,670

$6,370,469,864

12.98%

19.78%

8.40%

2015

$52,207,422,947

$6,954,137,406

13.32%

9.16%

6.40%

Percentage Change 2005-2015
Source: Texas Comptroller of Public Accounts; 2015 Data is subject to Revision

92.66%

 School Property Tax Levies, 2005 to 2015
Year

Total Property Taxes
School Levy as a %
of Total Levy
Levied
School Taxes Levied

Annual % change in Annual % change In
School Levy
Total Levy

2005

$33,478,989,315

$20,194,915,813

60.32%

8.96%

8.09%

2006

$35,552,907,030

$20,918,122,059

58.84%

3.58%

6.19%

2007

$35,114,596,621

$18,874,239,532

53.75%

-9.77%

-1.23%

2008

$38,979,969,545

$21,233,517,226

54.47%

12.50%

11.01%

2009

$40,034,355,798

$21,780,056,204

54.40%

2.57%

2.70%

2010

$40,275,451,155

$21,558,289,126

53.53%

-1.02%

0.60%

2011

$40,515,816,942

$22,002,289,358

54.31%

2.06%

0.60%

2012

$42,748,637,566

$23,072,781,962

53.97%

4.87%

5.51%

2013

$45,266,928,108

$24,854,671,461

54.91%

7.72%

5.89%

2014

$49,067,216,670

$26,792,677,172

54.60%

7.80%

8.40%

2015

$52,207,422,947

$28,176,465,862

53.97%

5.16%

6.40%

Percentage Change 2005-2015
Source: Texas Comptroller of Public Accounts; 2015 Data is subject to Revision

39.52%

 How is your Property Tax Bill
Calculated?
Appraised Value X Tax Rate = Tax Bill
If your property is appraised at $200,000, and your tax rate is the statewide average of
$2.50 per $100 of property value:

Then $200,000 X $2.50/$100 = $5,000
If your appraised value goes up by 10% to $220,000 but the tax rate stays the same:

Then $220,000 X $2.50/$100 = $5,500
That’s a $500 or 10% increase in your taxes!
In order to keep your taxes from increasing if your appraised value goes up 10%, the tax
rate needs to be cut by 9.09% to $2.227:

Then $220,000 X $2.227 /$100 = $5,000

 How does the Homestead Exemption
affect your ISD Property Tax bill?
Appraised Value – Homestead exemption = Assessed Value
Then
Assessed Value X Tax Rate = ISD Tax Bill
If you home is appraised at $200,000 and the Homestead Exemption for independent
school district (ISD) taxes is $25,000:

Then $200,000 - $25,000 = $175,000 Assessed Value
With an Assessed Value of $175,000 at the average independent school district (ISD)
tax rate of $1.275 per $100 of property value:

Then $175,000 X $1.275/$100 = $2,231 ISD Tax Bill
Without the Homestead exemption:

$200,000 X $1.275/$100 = $2,550 School ISD Tax Bill, a $319
difference
Average school tax rate computed from Comptroller 2015 School Tax Rate and Levy Data

 Do taxpayers ever get a chance to
vote on property tax rates?
For School Maintenance and Operations (M&O) Taxes?
Yes. Generally, if a school district wants to increase their tax rate above $1.04, they are
required to hold an election to get voter approval.

For Interest and Sinking (I&S)
Taxes, which are used to repay bonds?
Yes. If a taxing units wishes to issue bonds backed by property tax revenues, they are
required to hold an election to get voter approval.

For City, County, and Special District Maintenance and Operations
(M&O) Taxes?
No. If a taxing unit wants to increase their tax rate, they are NOT required to hold an
election to get voter approval UNLESS they exceed the 8% rollback tax rate. Then
voters may PETITION for a rollback election.

The Rollback rate for Cities, Counties, and Special districts allows tax
revenues from existing properties to grow 8% each year. Tax revenue from
new property is not counted, meaning the actual rate of revenue growth can be
12% or 13%.

 The rollback process for non school
taxes is difficult and expensive
For City, County, and Special District Maintenance and Operations Taxes
1. If the governing body of a taxing unit votes to increase their M&O tax rate above the
8% rollback tax rate, voters may petition to have a rollback election.
2. Taxpayers have 90 days to get either:
A. 7% of registered voters if the taxing unit collects at least $5 million in M&O taxes
B. 10% of registered voters if the taxing unit collects less than $5 million in M&O
taxes
3. Within 20 days of the petition being submitted, the governing body of the taxing unit
must determine if is valid. If they do nothing the petition is considered to be valid.
4. If the petition is valid, a rollback election must be held within 30 to 90 days.
5. If the voters reject the increase, the M&O tax rate is reduced to the 8% rollback rate.

For School Maintenance and Operations Taxes
1. If a school board votes to increase the M&O tax rate, they must hold a tax ratification
election in 30 to 90 days.
2. If the voters do not approve the increase, the school board may not adopt a tax rate
the exceeds the district's rollback rate.
The rollback process for school taxes is simple and doesn’t require
taxpayers to spend their own money on a petition drive.

 •
•

How many signatures
does it take to get a rollback petition
in a Large City?
For taxing units with more than $5 million per year in property tax revenues,
7% of registered voters must sign a petition to trigger a rollback election.
Voters must submit the petition to the taxing unit's governing body within 90
days of the tax rate adoption
Registered Voters

Houston

7% Petition Threshold

1,042,722

72,991

San Antonio

268,901

18,824

Dallas

591,389

41,398

Austin

508,854

35,620

Fort Worth

408,112

28,568

Source: Texas Secretary of State

The automatic rollback process for school taxes is simple and doesn’t require
taxpayers to spend their own money on a petition drive. An election is required
when tax rate increases exceed the rollback rate

 •
•

How many signatures
does it take to get a rollback petition
in a Large County?
For taxing units with more than $5 million per year in property tax revenues,
7% of registered voters must sign a petition to trigger a rollback election.
Voters must submit the petition to the taxing unit's governing body within 90
days of the tax rate adoption
Registered Voters

7% Petition Threshold

Harris

2,201,373

154,097

Bexar

1,027,676

71,938

Dallas

1,266,403

88,649

Travis

710,351

49,725

1,067,535

74,728

Tarrant
Source: Texas Secretary of State

The automatic rollback process for school taxes is simple and doesn’t require
taxpayers to spend their own money on a petition drive. An election is required
when tax rate increases exceed the rollback rate

 The Current Property Tax Cycle
Jan
1st

Late
Spring to
Summer:

July to
Sept.

January 1: Central Appraisal
District sets initial appraised
value

Property owners get
notices of appraised
Value. Owners may
protest their Value to the
Appraisal Review Board

Taxing Units hold
public meetings and
adopt tax rates

February
1st

Oct. 1st
to
Jan. 1st

And unpaid
property taxes
become
delinquent and
penalties with
interest are
imposed

Tax Bills sent
out by the Tax
Assessor
Collector

 Revising the Property Tax Calendar?
All property must be appraised by the CAD at market value as of January 1st
Appraisal notices for homeowners must be mailed by March 15th; all other appraisal
notices must be sent by April 15th
CAD must issue an estimated tax roll to taxing units by May 15th
All protests must be filed by May 15th
The ARB must certify appraisal records by July 5th
The CAD must certify appraisal roll to taxing units by July 10th
Taxing units must publish their truth in taxation notices and their tax rates by July
27th
If a taxing unit adopts a tax rate that exceeds a reduced rollback rate, it must be
adopted by August 15th
Voter approval for a tax rate that exceeds the reduced rollback rate must be obtained
on the general election date in November
If the rollback tax rate is approved by the voters, a supplemental tax bill shall be
issued by November 15th

 







Reforms to the property tax appraisal
process under consideration?
Consider the creation of an appointed board in the Comptroller’s Office to
provide oversight over the property tax system, including the ability to issue
and enforce binding rulings.
Giving the Comptroller authority to enforce the collection of information from
local governments including information concerning their property values,
their rollback and effective tax rate calculations, their adopted tax rate and the
projected and actual tax levies. These pieces of information form the
underpinning for the Truth in Taxation process, which is seen by many
taxpayers as an oxymoron.
Revising the Property Tax Code to require the automatic re-appraisal of
property that is located in an area that is or was subject to an official disaster
declaration by the governor.
Repealing the ability of a taxing unit to challenge the values of an entire class
of properties.
Improving the training of ARB members, both with respect to the Property Tax
Code and public meeting procedures.
ARB independence should be improved and consideration given to having the
Comptroller’s Office use local funds to issue ARB members’ paychecks.

 Timeline for the Select Committee

•
•
•
•

The Committee is still working to draft the final committee report
It is planned that the report will be complete by November 1st.
This presentation will be available on the Select Committee website upon
conclusion of the hearing.
The final committee report is expected to be available on the Select
Committee website in November.

 Senate Select Committee for
Property Tax Reform & Relief
Contact Information
Committee Office
Phone: (512) 463 0107
Address: Room E1.712
Fax: (512) 463 8810
Email: Proptaxreform@senate.state.tx.us
Web: http://www.senate.state.tx.us/75r/senate/commit/c632/c632.htm
Live Webcast :http://www.senate.state.tx.us/75r/Senate/events.php