In Dallas County, the assessed worth of a property could also be restricted, or “capped,” every year. This limitation restricts the rise within the property’s assessed worth for tax functions to a most of 10% over the earlier yr’s assessed worth, excluding new enhancements. For instance, if a house was appraised at $200,000 final yr, even when its market worth will increase considerably, the assessed worth for property tax calculation this yr can be capped at $220,000 (a ten% improve).
This provision gives owners a level of safety towards quickly escalating property taxes, particularly in areas experiencing important development and rising property values. It offers predictability and stability in tax payments, permitting owners to higher price range their funds. Traditionally, this cover was applied to deal with issues about owners being priced out of their houses because of hovering property tax assessments.