In Dallas County, the assessed worth of a property could also be restricted, or “capped,” annually. This limitation restricts the rise within the property’s assessed worth for tax functions to a most of 10% over the earlier 12 months’s assessed worth, excluding new enhancements. For instance, if a house was appraised at $200,000 final 12 months, even when its market worth will increase considerably, the assessed worth for property tax calculation this 12 months can be capped at $220,000 (a ten% enhance).
This provision provides householders a level of safety in opposition to quickly escalating property taxes, particularly in areas experiencing vital progress and rising property values. It supplies predictability and stability in tax payments, permitting householders to raised finances their funds. Traditionally, this cover was carried out to deal with considerations about householders being priced out of their houses because of hovering property tax assessments.