Texas residents may not like to hear this, but businesses also require a property tax break. The largest property tax break ever has been promised to homeowners by Governor Greg Abbott and legislative leaders.
However, small and medium-sized businesses must pay exorbitant property taxes as well and are not entitled to homestead exemptions or caps on valuation increases.
Base on the article published by Houston Chronicle on January 23, 2023, real estate-owning businesses, such as many mom-and-pop shops, are not entitled to the same exemptions and caps as homeowners, and their tax bills are escalating more quickly than their earnings on a consistent basis. Businesses must also pay property taxes on their inventory as well as anything else they own, such as computers, furniture, and equipment.
Thanks to Chapter 313 of the tax code, businesses that have recently relocated or established businesses with new facilities frequently pay little to no property taxes.
The program allowed school districts to exempt businesses from paying property taxes for up to 20 years in exchange for substantial investments in the neighborhood. The state covered the remaining costs to prevent the schools from losing any money.
Businesses do not contribute fairly based on profits in Texas because there is no income tax. Both homeowners and business owners require assistance with their property taxes. A $100,000 real estate value should be exempt from property taxes, according to the legislators.
Additionally, they should set a limit of 10% on taxable value growth each year for small and medium-sized businesses that have been operating from the same location for five or more years.
Unquestionably, homeowners deserve lower property taxes, but so do the businesses that improve our communities.