California to North Texas: the property-tax mindset shift

Two Proposition 13s, with opposite jobs

California's Proposition 13, passed in 1978, capped the property tax rate at 1 percent of assessed value and limited annual growth in assessed value to 2 percent, with reassessment to market value only on a change of ownership or new construction. It is an acquisition-value system: the longer you hold a home, the lower your bill sits relative to the market, which is the whole reason long-term California owners have tax bills far below their neighbors'.

Texas's Proposition 13, approved November 4, 2025, is not an assessment cap. It raised the school district residence homestead exemption from $100,000 to $140,000 of appraised value, per the Texas Comptroller, so a home appraised at $300,000 is taxed on $160,000 for school purposes in the 2025 tax year. The two measures share only a name. In Texas the assessment-growth protection for your primary home is the 10 percent annual cap under Tax Code Section 23.23, and it only begins after your homestead exemption is on file.

The tax bill on a new build, in Texas terms

Texas appraises every property as of January 1, based on its condition that day, not on closing or move-in (chapter 6). A finished home hits full appraised value on the January 1 roll; a home still under construction is assessed on its percentage of completion. Your homestead exemption and the 10 percent cap start after you file with the county appraisal district, so year one on a new build is full value by design. The practical shift for a California mover: the property tax line starts at full market value, and the protection you are used to from Prop 13's formula arrives in Texas as an exemption and a cap that begin on a delay, not at closing.

Mello-Roos vs. Texas MUD and PID districts

California's Mello-Roos districts, created under the 1982 Community Facilities District Act, were themselves an answer to Prop 13's revenue limits: a special parcel tax appearing on the property tax bill, approved by a two-thirds vote, financing roads, schools, or services for 20 to 40 years. Texas has its own versions of the same idea, with different mechanics.

A municipal utility district (MUD) is a political subdivision that borrows to build water, sewer, and drainage, and repays the debt with its own property tax until the bonds retire. A public improvement district (PID) funds roads, landscaping, lighting, and entry features through a fixed assessment attached to the lot, set by the city or county. Both show up on the bill and both are disclosed in the builder's paperwork; chapter 7 models the monthly math, including the ranges MUD and PID charges typically run.

Slab foundations and expansive clay

A large share of California housing sits on raised foundations, crawlspaces, or hillside piers. North Texas new construction is almost entirely slab-on-grade, poured on expansive clay that swells when wet and shrinks when dry. That movement is why soaker hoses matter in a Texas summer, why grading and drainage around the slab matter after every rain, and why hairline cracks appear even in well-built homes. Chapter 8 is the full reality check, including what to inspect, what to fix, and what to accept.

The hazard swap: wildfire and quake vs. hail, heat, and tornado

California's headline hazards are wildfire and earthquake. North Texas trades them for hail, high heat, spring severe-weather season, and the occasional tornado, with flash-flooding possible along creeks. Insurance follows the hazard: Texas homeowners policies are built around hail and wind rather than seismic and wildfire. On a new build the roof and exterior are new, the best starting position, so confirm the warranty's roof and wind terms, and ask how a hail claim and any wind and hail deductible would work on the policy before you bind coverage.

The equity-unlock story, with the math left honest

The version you see online says your California equity buys a bigger Texas home. The mechanism is real: proceeds from the sale fund the down payment and can enlarge the purchase. What the online version skips is that the Texas property tax bill runs on the new home's full appraised value as of January 1, not on what you paid, and the homestead cap starts on a delay (chapters 6 and 7). Budget the tax year before you size the purchase, and treat the process chapters as the part of the deal that protects the equity you brought.

One sale-side note to run past a CPA: the federal capital gains exclusion on a primary residence applies no matter which state you sell in, but California has its own basis and filing rules, so plan the sale year and the Texas residency date together.