I appreciate the thought put into your comment.
I structured the example as a straight revenue cap. That’s the worst case scenario. There are absolutely ways to reduce that scenario with legislative elements.
What the governor has proposed is “new growth would be exempt from the cap in the year that they are added to the tax rolls”.
One could assume it would be structured so that taxes have two flow paths:
In its first year would be charged the fixed rate the taxing entity had established and have its own “year one” property evaluation total
Do the YOY comparison and if the Valuation is above 2.5% would take the standard tax rate and reduce it until the rate results in a 2.5% increase
Or, it could be done the way you’ve described. They methods are almost the same. But, we are having to assume how it would work in Texas because the governor’s policy document never goes to even that rudimentary level of detail. The only real mention is the element you and I quoted. Because of that, I kept all legislative variables out of my example, trying to make it as simple as possible.
My goal with the article was to show that it isn’t a cap on your individual taxes or your property valuation. And that’s how it’s being presented. Hopefully that came through.