Circuit Breaker Limitation on Appraised Value

All real property valued at $5,000,000 or less will have a 20 percent circuit breaker cap on the appraised value, with the exclusion of land receiving the agriculture-use special appraisal and homestead properties that receive the 10 percent limited appraised value cap.

The circuit breaker provision of the Property Tax Code limits the amount the Appraisal District can increase your property value. The appraised value of qualifying real property is limited to an increase of no more than 20 percent per year unless new improvements, excluding ordinary maintenance, have been made. This limitation takes effect on January 1 of the tax year following the first tax year in which the owner owns the property and expires on January 1 of the first tax year that the owner no longer owns the property,  If you owned your property as of January 1, 2023, you will receive this appraised value limitation in 2024.  Your property will now carry two values:

• the circuit breaker cap value which is the value that your taxes will be based on, and
• the market value which is the true value of the property.

For example, the appraised value of your qualifying real property was $100,000 last year. This year the Appraisal District appraises your property at $125,000. No new improvements or additions have been made to the property since last year. The circuit breaker value is calculated as follows:

$100,000 X 20% = $20,000 + $100,000 = $120,000

Your taxes will be based on the circuit breaker value of $120,000; however, the market value of your property will remain at $125,000.

Should you sell your property, the limitation on its appraised value will be removed, and the tax base will increase to the market value.

The circuit breaker currently applies to the 2024, 2025, and 2026 tax years.  The appraised value that the circuit breaker applies to is set at $5,000,000 or less for 2024; however, the State Comptroller can increase or decrease the appraised value limit for 2025 and 2026 based on the consumer price indexed the importance of quick turnaround times, and we work efficiently to deliver our reports within a short timeframe.

 For Immediate Release 04/02/2024

 Updated Property Tax Information Now Available for Texas Taxpayers of Cochran County — New and updated property tax information has just been compiled by Cochran Central Appraisal District and is available now to assist taxpayers.

 This property tax information is current and covers a wide range of topics, such as taxpayer remedies, exemptions and appraisals, and has information for select groups, such as disabled veterans and persons age 65 or older. “Whether you are a homeowner, business owner, disabled veteran or taxpayer, it’s important you know your rights concerning property tax laws” said David Greener, Chief Appraiser of the Cochran Central  Appraisal District. “You can contact us about any property tax issues with full confidence that we will provide the most complete, accurate and up-to-date information available to assist you.” This includes information about the following programs. 

• Property Tax Exemptions for Disabled Veterans – The law provides partial exemptions for any property owned by disabled veterans or surviving spouses and surviving children of deceased disabled veterans. Another partial exemption is for homesteads donated to disabled veterans by charitable organizations at no cost or not more than 50 percent of the good faith estimate of the homestead’s market value to disabled veterans and their surviving spouses. The exemption amount is determined according to percentage of service-connected disability. The law also provides a 100 percent homestead exemption for 100 percent disabled veterans and their surviving spouses and surviving spouses of U.S. armed service members killed or fatally injured in the line of duty. 

• Property Tax Exemptions – Non-profit organizations that meet statutory requirements may seek property tax exemptions and must apply to their local appraisal district by a specific date. Child-care facilities; medical or biomedical property; businesses that receive tax abatements granted by taxing units; ship inventory out of Texas that may be eligible for the freeport exemption; store certain goods in transit in warehouses that are moved within 175 days; construct, install or acquire pollution control property; own and operate energy storage systems; convert landfill-generated gas; or store offshore drilling equipment while not in use may also be eligible for statutory exemptions.

 • Rendering Taxable Property – If a business owns tangible personal property that is used to produce income, the business must file a rendition with its local appraisal district by a specified date. Personal property includes inventory and equipment used by a business. Owners do not have to render exempt property such as church property or an agriculture producer’s equipment used for farming. • Appraisal Notices – Normally, taxpayers receive a notice of appraised value from the appropriate local appraisal district. The city, county, school districts and other local taxing units use the appraisal district’s value to set property taxes for the coming year. 

• Taxpayer Assistance Pamphlet – This Comptroller publication explains in detail the functions of a taxpayer liaison officer, how to protest a property appraisal, what issues the county appraisal review board (ARB) can consider and what to expect during a protest hearing. The publication also discusses the option to request limited binding arbitration to compel the ARB or chief appraiser to comply with a procedural requirement and the options of taking a taxpayer’s case to district court, the State Office of Administrative Hearings or regular binding arbitration if the taxpayer is dissatisfied with the outcome of the ARB hearing. 

• Homestead Exemptions – A homestead is generally defined as the home and land used as the owner’s principal residence on Jan. 1 of the tax year. A person who acquires property after Jan. 1 may receive the residence homestead exemption for the applicable portion of that tax year immediately on qualification for the exemption if the preceding owner did not receive the same exemption for that tax year. A homestead exemption reduces the home's appraised value and, as a result, lowers property taxes. Applications are submitted to the appropriate local appraisal district. 

• Productivity Appraisal – Property owners who use land for timberland production, agricultural purposes or wildlife management can be granted property tax relief on their land. They may apply to their local appraisal district for an agricultural special appraisal which may result in a lower appraisal of the land based on production, versus market value.

• Residence Homestead Tax Deferral – Texas homeowners may postpone paying the currently delinquent property taxes due on the appreciating value of their homes by filing a tax deferral affidavit at their local appraisal district. This tax relief allows homeowners to pay the property taxes on 105 percent of the preceding year’s appraised value of their homestead, plus the taxes on any new improvements to the homestead. The deferral postpones the remaining taxes, with interest accruing at 8 percent per year but does not cancel them. 

• Property Tax Deferral for Persons Age 65 or Older or Disabled or Disabled Veteran Homeowners – Texans who are age 65 or older or disabled, as defined by law, or who qualify for a disabled veteran exemption may postpone paying current and delinquent property taxes on their homes by signing a tax deferral affidavit. Once the affidavit is on file, taxes are deferred, but not cancelled, as long as the owner continues to own and live in the home. Interest continues to accrue at 5 percent per year on the unpaid taxes. You may obtain a deferral affidavit at the appraisal district. 

• Protesting Property Appraisal Values – Property owners who disagree with the appraisal district’s appraisal of their property for local taxes or for any other action that adversely affects them may protest their property value to their county’s ARB. 

• Informal Meetings – Property owners can request an informal meeting with appraisal district staff to try and resolve their disputes prior to attending ARB hearings. 

For more information about these programs, contact Cochran Central Appraisal District at (806)266-554 or at https://cochrancad.com/ . Information is also available on the Comptroller’s Property Tax Assistance Division’s website at https://comptroller.texas.gov/taxes/property-tax/.