A homeowner in Texas adds a $50,000 swimming pool to a property with an over-65 tax freeze. How does the improvement affect the school district tax ceiling?
Correct Answer
C) The tax ceiling increases by the amount of tax on the improvement (the $50,000 increase is taxed at the current school rate and added to the ceiling)
Under Texas Tax Code §11.26(b), when an over-65 homeowner makes improvements, the tax ceiling is adjusted upward by the amount of tax attributable to the new improvement. The ceiling increases by the tax on the $50,000 improvement, calculated at the current school rate.
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