Cities, counties and school districts assess the majority of the property taxes. Each entity levies its own tax rate. Taxes are calculated on the assessed value of the property which does not necessarily equal that of the purchase price of the house. Assessment is reviewed and set by the county on a regular basis. If property is assessed as having increased in value the dollar value generated may be greater even if there is a reduction or no change in the tax rate. In Texas every home is allowed a homestead exemption. Check with the county tax assessor for instructions for homestead exemption. Growing communities and growing school districts may need to increase taxes annually or regularly request taxpayers to pass special assessment bond issues in order to supply the services the citizens request. Ask each taxing body what the current tax rates are, when they were last increased (or decreased), if there are any known future intentions for bond issues which would increase the tax rate and by how much.