The increased value on existing structures is not new property. New property will include property value in the current year that was under an abatement agreement. The amount includes the value of a property that had a portion of its value excluded because of a tax abatement agreement for all or a part of the property, less the value of the property included last year. New property value for tax abatements applies to agreements that are expiring and to agreements that have a declining percentage or amount of exemption each year. This provision applies to taxing units created under Section 52, Article III, Texas Constitution, or Section 59, Article XIV, Texas Constitution.
New property generates new revenue for a taxing unit.
It helps to offset property value losses for new exemptions and special appraisals granted for the first time in the current year. A school district that deannexed territory will deduct the value of the deannexed territory from last year's total value for the effective rate calculation. The property values for the deannexed territory are not included in the total current value for the school district. For a school district that annexed territory, the school district will subtract the property value for the annexed territory from the total current certified values for the effective tax rate calculations. For the rollback rate calculation, the school district includes the value of annexed territory in the total current value for the district.