A recent WalletHub study ranked Texas as one of the top states to start a business in 2025, prompting a property tax consulting firm to advise both established and new business property owners to prepare for upcoming property assessments.
For business and commercial property owners in Texas, property taxes represent a major financial responsibility. While some states rely on income taxes, Texas depends heavily on property taxes to fund local services such as schools, public safety, and infrastructure. This reliance on property taxes means commercial property rates can be high, making it essential for business owners—especially the growing number moving to Texas—to understand how property assessments work, according to Ryan Chismark, a property tax consultant and partner at Meritax Advisors.
In Texas, property taxes are determined by the appraised value of a property, set by the county appraisal district. Given the unpredictable nature of the real estate market, the value of commercial properties can fluctuate, causing changes in tax liabilities from year to year.
The Dallas-Fort Worth area, for example, has seen substantial business growth with new developments and corporate relocations driving up property values. As more businesses set up in the region, Chismark stresses the importance for commercial property owners to stay informed about their assessments to ensure they reflect current market trends. The area’s rapid expansion has also led to fierce competition for commercial real estate, highlighting the need for accurate property valuations.
“In Texas, you have an assessment, a tax rate, and when you multiply them together, you get your property tax liability,” Chismark explained. “Focusing on just one component leaves out the broader context of how this impacts school districts, municipalities, and local communities. My role is to clarify these details.”
Chismark advises business property owners to review their annual appraisal notices, compare their properties’ values with similar nearby properties, and identify any discrepancies. Keeping up with local market trends and real estate conditions also helps in determining whether their appraised values are fair and accurate.
Meanwhile, the Texas Legislature is considering several bills that could directly or indirectly affect business property owners.
Governor Greg Abbott has proposed increasing the business personal property tax exemption to $100,000 to relieve small businesses.
Senate Bill 4 (SB 4) suggests raising the homestead exemption for school property taxes to $140,000 for homeowners and $150,000 for seniors. While this primarily benefits residential property owners, it could also affect commercial property owners by altering the overall tax environment.
Additionally, legislation is in the works to prevent housing finance corporations (HFCs) from offering property tax exemptions to private developers outside their jurisdictions. This measure aims to curb out-of-state investors from taking advantage of tax breaks that have historically shifted the tax burden to local taxpayers, including commercial property owners.
