Texas appraisal districts have been on the hunt for a solution to help their homeowners lower their property tax burdens. Tarrant County’s Appraisal District recently approved proposals with this goal...
What the Property Tax Changes Sweeping the State Could Mean for Homeowners
Texas appraisal districts have been on the hunt for a solution to help their homeowners lower their property tax burdens. Tarrant County’s Appraisal District recently approved proposals with this goal in mind, making huge adjustments in an attempt to grant their taxpayers some relief.
The changes made in Tarrant County have raised pressures on other Texas counties’ appraisal districts, like Bexar County, to follow suit and make meaningful changes to the property tax burden placed on homeowners. However, the question still lingers — is Tarrant County’s reform a step in the right direction?
Changes Implemented by Tarrant County
In their quest to reduce the burden of rising property taxes for their taxpayers, Tarrant County implemented changes that include:
- the consideration of previous reductions in appraising a property’s value
- appraisal frequency changing from annually to every two years
- not reappraising residential property values for Tax Year 2025, with an exception placed on new improvements and construction
- capping resident appraisal increases at 5% unless clear and convincing evidence proves a higher valuation is warranted
While these changes seem like the perfect jumping-off point for many in the journey to lowering the property tax increase burden for homeowners, not everyone is happy about it.
The Plan’s Anticipated Benefits to Taxpayers
By reappraising every two years instead of annually, taxpayers are granted a break from fighting their appraised values since their taxable value should not increase. The 5% increased value threshold is anticipated to help taxpayers by ensuring further accuracy within their property tax appraisals, enforcing the chief appraiser’s obligation under §25.18(b)(7) of the Texas Property Tax Code to ensure assigned values are within acceptable ranges.
The Potential Drawbacks of Tarrant County’s New Reappraisal Plan
Tarrant County’s New Reappraisal Plan has been controversial since its proposal. While it seems like a huge step forward in reducing the burden placed on homeowners, it is not perfect and can negatively impact some homeowners and the schools within the district. Tarrant County’s new reappraisal plan can create a false sense of peace of mind from rising property values and taxes.
While a homeowner may not experience property tax increases every year, it is important to note that the valuation increase will only be deferred to the next year, making the impact of increasing property values more severe when the time comes for an increase. This could place some taxpayers at greater risk if their market values are declining in a non-reappraisal year, since the issue will not be addressed in real-time.
The wording that requires “clear and convincing evidence” to justify increasing a residential home’s value by more than 5% compared to the prior year could bring some issues for taxpayers, as well, making protesting property values more difficult. The wording is subjective enough to do little, if anything, to actually benefit taxpayers.
Homeowners may feel the impacts of these changes in other areas of their community, as well. Schools have been one of the greatest protestors of the proposed changes, since the budget allotted for their districts will be impacted by these changes.
Changes Implemented in Bexar County
The changes being implemented in Tarrant County may not be perfect, but there is no doubting the fact that change is necessary. The call for change has traveled to Bexar County, where homeowners have felt the weight of property value increases the past few years. While, according to the San Antonio Report, the average home value increased just 2.4% this year, the average 16% increase in 2023 and 28% increase in 2022 have left the homeowners of the county reeling.
While the Bexar Appraisal District did not implement every change proposed in Tarrant County, they did make one major stride in hopes of assisting their taxpayers with the burden of property tax values. Individuals who have successfully contested their property valuation will be granted a one-year reprieve from property reappraisals.
Conclusion
Regardless of these changes, there may be a time that you wish to reduce your tax burden. If you are planning to file a tax protest to challenge your residential or business property's value, SWBC’s Ad Valorem Tax Advisors are here to help you. Contact us today!
Gary Rivas
Gary Rivas is a Texas licensed Senior Property Tax Consultant experienced in providing Industrial, Commercial, and Residential property tax reduction advisory services for real and personal property in Texas and multiple states across the country. He has 31 years of experience in the Property Tax Profession with 27 years as a Property Tax Consultant, and 34 years as a licensed Texas Real Estate Agent.
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