Bohac files Property Tax Relief and Appraisal Reform Package

AUSTIN, TEXAS–As the 140 day 81st Legislative Session begins to progress, state Representative Dwayne Bohac (R-Houston) has filed an aggressive property tax relief and property appraisal reform package. The package contains five bills designed to stimulate the state’s economy and provide much-needed tax relief for families.

“Skyrocketing property appraisals in Texas are literally taxing people out of their homes, especially our seniors,” Bohac said. “In a stagnant economy the last thing we need is to take more money out of people’s pockets through out-of-control appraisals. Lowering taxes and capping appraisals will allow property owners to keep more of what they earn so they can choose what to do with their savings.”

House Bill 668, authored by Bohac and state Rep. Chuck Hopson (D-Jacksonville), would increase the Residence Homestead exemption from $10,000 to $25,000. Currently, a home with a market value of $100,000 has a taxable base of $90,000 with the exemption’s discount. An increased exemption offered by the proposed bill would reduce the same home’s taxable base to $75,000 – a savings of approximately 17 percent. The bill would not affect the market value of homes.

In addition, House Joint Resolution 38, authored by Bohac and state Rep. Phil King (R-Weatherford), would require that at least 25 percent of all budget surpluses be used to “buy down” property taxes as a means of refunding budget surpluses to taxpayers. This would guarantee property tax savings for homeowners and commercial property owners by placing the measure in the Texas Constitution.

House Bill 1106 would allow local taxing authorities within the boundaries of Harris County (including the City of Houston and Harris County) to lower the current 10 percent homestead appraisal cap to 5 percent with a simple vote. This bill would boost our local autonomy, allowing city council members and county commissioners to determine the appraisal caps for their own jurisdictions. City of Houston Mayor Bill White said he supports giving local governments more flexibility. “We support legislation that would give local governments more options to lower residential property values,” White said. “We do not believe Houstonians or the state should decide on what the appropriate cap should be for a city or a county outside of Houston.”

House Bill 209 addresses skyrocketing appraisals from another direction and would limit the frequency of homestead reappraisals from once a year to every two years, creating a de facto 5 percent appraisal cap. This measure offers yet another strategy for lowering the appraisal cap from 10 percent to 5 percent. A companion bill authored by state Sen. Dan Patrick (R-Houston) has been filed in the Texas Senate.

House Bill 2, authored by Bohac and state Rep. John Otto (R-Dayton), is an omnibus appraisal reform bill that would fundamentally change many components of how property is appraised and would provide greater fairness to the appraisal system as a whole by giving property owners a stronger voice and more tools in protesting their appraisals.

“Collectively, these five bills offer prudent economic strategies to slow the growth of government and reduce property tax bills,” Bohac said. “This is a true stimulus package to grow the Texas economy by enabling citizens to spend more on goods and services. The best way to ensure that Texans have a place to work and money to spend is to cut and control property taxes.”

The Texas Legislature convened on January 13 and will run through June 1. Rep. Bohac was recently appointed to the Ways and Means committee, which has the sole responsibility of deliberating all bills relating to taxation in the State of Texas.