Property Taxes Uncapping

[Alex Kamunyo]

Has anyone in Texas (specifically San Antonio) had any experiencing with property taxes uncapping to the current tax rate after purchasing a property? I have heard that property taxes are usually subject to the tax rate at the time of purchase. So for example, if someone purchased a property in 2002 they would pay the 2002 property tax rate for the time that they own the property but if they sell it in 2018, the tax rate uncaps and the new owner is now paying the 2018 property tax rate. Is this how this principle is applied practically or are there more nuances that should be noted? Also, I know property taxes are based on the value of the property, so naturally they will go up gradually over the years. So in that example I used they wouldn't be paying the same in taxes each year, it would increase every year. But I ask because in Texas property taxes are extremely high due to the fact that school districts are independent, so this is how they are funded. When I analyze deals I want to be sure I am accounting for the most accurate tax rate, because that can make or break deal. If anyone has a general explanation as to how the property taxes work, I would greatly appreciate that.

Thanks