“We cannot allow the house you can afford today to become the home you are taxed out of tomorrow.”

Frequently Asked Questions

This section is designed to answer some of the most commonly asked questions about the “Bohac Bill”. If you have a question that you feel is not addressed, please fill out our Comment Form and let us know. We are constantly striving to reach the best solution to the problem of skyrocketing property taxes and your input is much appreciated and welcomed.

What is the “Bohac Bill”?
Under current law, a 10 percent cap exists to limit the annual increase in appraised value of a residence homestead. The “Bohac Bill” would cut this in half and place an unprecedented 5 percent cap on all real property for all taxing units found on your tax bill. By limiting the rate at which property appraisals can grow, property is allowed to reach market value over a longer length of time rather than through severe increases. This bill also seeks to prevent taxing entities from being able to increase revenue through automatic tax appraisal hikes instead of raising the tax rate and being held accountable. If local governments need additional revenue, they must stand accountable by raising the tax rate and make their case to the public.
What became of the “Bohac Bill” during the 78th Legislative Session?
State Representative Dwayne Bohac (R-Houston) filed HB 3223 during the 78th Legislative Session (2003), an appraisal relief bill that would have lowered the current appraisal cap to 5 percent. After a long, hard-fought journey through the Texas House of Representatives that cumulated in a rare, unanimous record vote of 134-0, the bill was sent to the Texas Senate. Senator Kyle Janek (R-Houston) signed on as the Senate Sponsor and worked hard to get it to the Senate floor. Unfortunately, we were unable to secure the 21 votes needed for the bill to be called up for a vote. Although HB 3223 came to halt in the Senate, Rep. Bohac has filed a new version of the bill, HB 784, to continue the debate during the current 79th Legislative Session (2005).
Why not cap appraisals at three percent?
We agree! Representative Bohac even filed a bill during the last special session in 2003 that would have capped residential appraisals at three percent. The fact of the matter is there’s much more support in the legislature right now for a five percent cap than a three percent cap. Because this bill would require a constitutional amendment to become law, it must receive at least 100 votes (out of 150) in the Texas House to pass. Bohac fully supports a three percent cap and will be glad to amend his bill if the three percent cap has the required support it would need to pass. If the only way to move the process forward is to stick with five, we’ll take it because it’s twice as good as the current 10 percent cap and much better than zero appraisal relief.
Whom does this bill help?
This bill helps homeowners, renters, and businesses—both big and small. It helps first time homebuyers who are struggling to keep up with skyrocketing property tax increases. It helps senior citizens and disabled individuals who live on a fixed income. It helps people across the state in both high-income and low-income areas who every year see their appraisals grow by 8%, 9%, 10% or more.
Where can I find the current 10% cap in the law?
You can learn more by viewing Section 23.23 of the Texas Tax Code.
How can I protest my property tax appraisal?
Go to this site to find contact information for your county appraisal district. If you cannot find it online, call information and ask for the phone number of your local county appraisal district. They should be able to give you all the information you need.
Which taxing entities would be subject to the 5% cap on annual appraisal increases?
All taxing entities found on a property tax bill.
What types of property would this affect?
The bill applies to all REAL PROPERTY, including residential, commercial and industrial. It does not apply to land designated for agricultural use, timber land, recreational, park and scenic land, nor does it apply to public access airport property or mineral interests.
How would this bill affect rural counties who depend on mineral interests to raise revenue?
The cap would not apply to mineral interests since they can fluctuate much more than the real estate market.
Would this bill affect the price for which I can sell my home?
Absolutely not. The market value, which can be found on your tax bill, and the trends of the real estate market, determine the price at which you can sell your home or commercial property. This bill deals with the appraised value that is used solely for ad valorem tax purposes.
Would this bill hurt the real estate market?
Absolutely not. In fact, a lower appraisal cap would give more confidence to the homebuyer because they would know what to expect when they buy a new home. A prospective buyer will actually be able to buy a more expensive house because they know its appraisal value won’t run away from them at 10 percent each year and tax them out of their new home.
Couldn’t the legislature simply lower the school tax rate? Isn’t that really the best way to lower property taxes?
If we simply lower school property tax rates but do not lower the appraisal cap, any tax cut we give homeowners will be eaten up by appraisal creep. A recent analysis of the Dallas Independent School District property tax rolls shows that even with a tax cut lowering the maintenance and operations rate to $1.00 per hundred dollars of evaluation, current appraisal growth trends would overtake any savings WITHIN TWO AND A HALF YEARS. A tax cut without correspondingly lowering the appraisal cap would just be smoke and mirrors because appraisal increases would push the taxpayer’s bill right back where it is today. If we are going to cut property taxes, we must protect homeowners from the inevitable appraisal creep that will rob them of their well deserved savings. A tax cut should be a tax cut, and we can’t leave the backdoor open for appraisal hikes to fill the void.
What kind of impact would this bill have on local governments?
NOT A SINGLE TAXING ENTITY WILL LOSE CURRENT REVENUE BECAUSE OF THIS BILL. Any estimates that imply this are based on estimated loss of future revenue in areas with rapidly increasing property values. Taxing entities would be able to appraise property at an annual INCREASE of 5% and would still be raising more money each year than the last. No one will suffer an actual loss and have money taken away from them. This is a common but very disingenuous argument used against the bill.
How will local taxing entities be able to raise additional funding?
If local governments need to raise additional revenue, they should not be able to hide behind excessive appraisals and instead should be forced to raise the tax rate and stand accountable. This is what the public wants.
Could this lead to a split tax role or shift the tax burden to one group over another?
Absolutely not. A split tax roll means different tax rates for different types of property. This was an argument made against similar bills that would have placed a 5% appraisal cap on residence homesteads only. This 5% cap applies to ALL REAL PROPERTY, to all land and anything attached to it. It shows no favoritism between residential, commercial or industrial property. It is unconstitutional for Texas to have a split tax roll, and this bill would certainly not call that into question because it only deals with appraised value.
Would this bill create inequality between homeowners in the same neighborhood—between those who have been there for a long time that benefit from the cap and those who just purchased a home?
When you buy a house, you agree to the purchase price and know what you can afford. You make your own deal, and part of your decision on what you can afford is made knowing that you will have to pay property taxes on the appraised value of your house at the point of sale. In the future if appraisal values rise, you will be protected just as your “capped” neighbors are from having the property taxes you once budgeted for run away and leave you behind.
I’ve heard that appraisal caps only help the rich. Is that true?
This is one of the most disingenuous arguments out there. According to data provided by the individual county appraisers, the facts are clear that this is not property tax relief for only the “rich.” In Dallas County, 77% of the homes who are currently benefiting from the existing ten percent appraisal cap are below $150,000 in taxable value. In Travis County (Austin), 57% of the capped homes are less than $150,000. In Bexar County (San Antonio) the number rises to 85% for the same category. In Harris County (Houston), 65% of the capped homes are less than $100,000 in taxable value. These figures clearly show that lowering the appraisal cap will help the homeowners who need it the most.
This sounds pretty good. Who is against property tax appraisal relief and why?
The big-government spending lobby. As a taxpayer, you should know that your own property tax dollars are being spent in Austin right now to fight appraisal caps by lobbyist representing cities and counties from around the state. Why? Local governments will do or say whatever it takes to prevent this reform from passing because ultimately it means they will no longer be able to sit back and hide behind automatic appraisal increases to get more of your money. They know that if this passes, they will have to make the case to the public and raise the tax rate if more money is needed, and many do not want to have that kind of accountability to you, the taxpayer.
What can I do to help?
Visit the “Act Now!” section of this site to find out how you can help Dwayne Bohac make property tax appraisal reform a reality.

Statistical information provided by:
Office of Paul Bettencourt
Harris County Tax Assessor-Collector