Summer in Texas means high temperatures, fewer meetings, and – let’s be honest – a collective mental shift toward anything but property taxes.
While everyone else is looking for a beach or a break, finance leaders should be looking at their property tax strategy. Why? Because this season of so-called downtime is actually one of the best times to get ahead.
It may not sound as exciting as a long weekend at the coast, but reviewing your property tax posture now can unlock serious cash flow advantages, especially if you operate in Texas – a state with some of the highest commercial property taxes in the country.
Property Taxes Are Hurting Businesses in Texas – Here’s Why
Texas businesses pay more than 60% of the state’s property tax burden – well above the national average.
Texas consistently ranks among the top states for business-friendly regulations, yet property taxes remain a major pain point. The state has no corporate or personal income tax, which places disproportionate funding pressure on local property taxes to fund schools, municipalities, and infrastructure.
According to a 2023 report by the Tax Foundation, Texas businesses pay more than 60% of the state’s property tax burden – well above the national average. And in urban counties like Harris, Dallas, and Travis, rapidly rising valuations and aggressive appraisal practices are putting unsustainable pressure on business operations.
Compounding the issue is the use of mass appraisal systems by county appraisal districts that often overvalue assets, particularly for commercial real estate and business personal property. These systems use generalized cost-depreciation schedules or market assumptions that don’t always reflect the current condition, usage, or real value of assets.
Why Summer Matters: Cash Flow, Forecasting & Competitive Edge
Taking action now allows finance teams to sharpen their accrual models ahead of Q3 and Q4, improving budgeting accuracy and cash flow forecasting.
By mid-summer, most Texas appraisal districts have finalized their certified values, but actual tax bills have not yet been issued. This creates a valuable window of time for businesses to thoroughly evaluate their 2025 property tax outcomes.
Reviewing the results of any recent renderings or protests can reveal whether assessments remain inflated or if further action is needed. It’s also a chance to identify patterns, assess whether your current rendering strategies were effective, and uncover areas where additional reductions may still be possible through post-certification corrections.
Taking action now allows finance teams to sharpen their accrual models ahead of Q3 and Q4, improving budgeting accuracy and cash flow forecasting. It also allows for time to review asset classifications and identify any available exemptions before year-end, ultimately helping preserve capital and reduce future liabilities.
Laying the Groundwork Now Before Rendering Property Taxes for 2026
Whether you’re a Texas-based company or an out-of-state enterprise with operations here, your best defense against overvaluation is a well-informed, proactive approach.
The summer months before tax bills arrive for 2025 renderings is also ideal for laying the groundwork for 2026. Leveraging fair market value data, companies can begin developing rendering strategies that more accurately reflect the current condition and market realities of their assets.
Rendering by providing cost and year acquired data to the county instead of rendering at fair market value (which Texas law allows as a “good faith estimate”) often results in over-taxation. Worse, missing protest deadlines or not engaging in the local appeal process forfeits your right to challenge inflated certified values.
Benefits of rendering your property taxes at a “good faith estimate” of fair market value:
Better cash flow: Reduced tax liability means improved short-term liquidity.
Preserved capital: Avoid overpaying taxes on inflated asset values, especially during expansion or retraction phases.
Accurate forecasting: Enable better budget planning, accrual accuracy, and fewer end-of-year surprises.
Strategic reinvestment: Fund capital projects, facility upgrades, or new technology initiatives with confidence.
Final Thought: Don’t Let a Lazy Summer Lead to a Tax Hangover
In a state where businesses shoulder the lion’s share of the property tax burden, the cost of inaction is high.
Whether you’re a Texas-based company or an out-of-state enterprise with operations here, your best defense against overvaluation is a well-informed, proactive approach.
We get it. Property tax optimization doesn’t exactly scream “fun in the sun.” But improving your property tax strategy is one of the most controllable ways to drive real value back to your business.
While competitors are checked out or coasting on cruise control this summer, you could be laying the groundwork for lower tax bills, higher retained earnings, smoother year-end closes, and the kind of CFO-level peace of mind that makes Q4 a whole lot easier.
Curious to learn more?
Let’s Talk and Grow Your Business.
Reach out to us today for a free consultation.
Property Taxes Are Hurting Businesses in Texas – Here’s Why
Texas businesses pay more than 60% of the state’s property tax burden – well above the national average.
Texas consistently ranks among the top states for business-friendly regulations, yet property taxes remain a major pain point. The state has no corporate or personal income tax, which places disproportionate funding pressure on local property taxes to fund schools, municipalities, and infrastructure.
According to a 2023 report by the Tax Foundation, Texas businesses pay more than 60% of the state’s property tax burden – well above the national average. And in urban counties like Harris, Dallas, and Travis, rapidly rising valuations and aggressive appraisal practices are putting unsustainable pressure on business operations.
Compounding the issue is the use of mass appraisal systems by county appraisal districts that often overvalue assets, particularly for commercial real estate and business personal property. These systems use generalized cost-depreciation schedules or market assumptions that don’t reflect the current condition, usage, or real value of assets.
Why Summer Matters: Cash Flow, Forecasting & Competitive Edge
Taking action now allows finance teams to sharpen their accrual models ahead of Q3 and Q4, improving budgeting accuracy and cash flow forecasting.
By mid-summer, most Texas appraisal districts have finalized their certified values, but actual tax bills have not yet been issued. This creates a valuable window of time for businesses to thoroughly evaluate their 2025 property tax outcomes.
Reviewing the results of any recent renderings or protests can reveal whether assessments remain inflated or if further action is needed. It’s also a chance to identify patterns, assess whether your current rendering strategies were effective, and uncover areas where additional reductions may still be possible through post-certification corrections.
Taking action now allows finance teams to sharpen their accrual models ahead of Q3 and Q4, improving budgeting accuracy and cash flow forecasting. It also allows for time to review asset classifications and identify any available exemptions before year-end, ultimately helping preserve capital and reduce future liabilities.
Laying the Groundwork Now Before Rendering Property Taxes for 2026
Whether you’re a Texas-based company or an out-of-state enterprise with operations here, your best defense against overvaluation is a well-informed, proactive approach.
The summer months before tax bills arrive for 2025 renderings is also ideal for laying the groundwork for 2026. Leveraging fair market value data, companies can begin developing rendering strategies that more accurately reflect the current condition and market realities of their assets.
Rendering by providing cost and year acquired data to the county instead of rendering at fair market value (which Texas law allows as a “good faith estimate”) often results in over-taxation. Worse, missing protest deadlines or not engaging in the local appeal process forfeits your right to challenge inflated certified values.
Benefits of rendering your property taxes at a “good faith estimate” of fair market value:
Better cash flow: Reduced tax liability means improved short-term liquidity.
Preserved capital: Avoid overpaying taxes on inflated asset values, especially during expansion or retraction phases.
Accurate forecasting: Enable better budget planning, accrual accuracy, and fewer end-of-year surprises.
Strategic reinvestment: Fund capital projects, facility upgrades, or new technology initiatives with confidence.
Final Thought: Don’t Let a Lazy Summer Lead to a Tax Hangover
In a state where businesses shoulder the lion’s share of the property tax burden, the cost of inaction is high.
Whether you’re a Texas-based company or an out-of-state enterprise with operations here, your best defense against overvaluation is a well-informed, proactive approach.
We get it. Property tax optimization doesn’t exactly scream “fun in the sun.” But improving your property tax strategy is one of the most controllable ways to drive real value back to your business.
While competitors are checked out or coasting on cruise control this summer, you could be laying the groundwork for lower tax bills, higher retained earnings, smoother year-end closes, and the kind of CFO-level peace of mind that makes Q4 a whole lot easier.