Texas Association of Appraisal Districts releases guidelines | News

AUSTIN – The Texas Association of Appraisal Districts reported historic growth in real estate values ​​in Texas.

According to the association, areas around the state have seen their values ​​increase by 20 to 50 percent since last year. Alvin Lankford, Association President and Chief Assessor for Williamson County, said, “The Texas real estate market is growing as rapidly as we have ever seen in the history of the state.

We have all seen the countless stories of people moving to Texas from other states. This increase in population contributes to a shortage of available housing and to the increase in prices paid for houses. Lankford added, “As a reminder, by state law, appraisal districts must appraise property at market value. In fact, we are regulated by the State of Texas to ensure that we do our job fairly and accurately. But keep in mind that we are not responsible for setting the tax rate. We follow the law, state regulations and the reality of real estate market sales when making our value determinations. »

In a state with no personal income tax, cities, counties, hospitals, school districts, and community colleges all rely heavily on property taxes. These same political subdivisions set tax rates that determine the amount of taxes paid by homeowners and businesses. The state of Texas also benefits from property taxes of more than $5.6 billion over a two-year budget cycle. That’s 75% more than what the state wins in the lottery. Additionally, in the most recent budget passed by the Legislature, the state assumed that property tax revenues collected (not assessed amounts) would increase by 6% over a two-year period.

Lankford concluded, “Considering that for many of us our home is our biggest investment, an increase in market value can be seen as a blessing. However, many people equate an increase in market value with an equal increase in property taxes, which is simply not the case. An increase in property taxes is sometimes necessary to ensure adequate funding for police and fire departments, as well as our schools, hospitals and other services vital to our communities.

However, the increase in what a person owes in property taxes is unlikely to be proportional to the increase in home values. First, there is a 10% cap on the amount the assessed value can increase for properties with a homestead exemption. Second, caps on the amount of additional revenue from property taxes that a tax unit can raise without going through voters for approval will limit tax increases. It has never been more important to have a homestead exemption and the resulting 10% cap

value than it is today.

Information from the Texas A&M Real Estate Research Center on the Texas housing market as well as major metropolitan areas:

• Amarillo MSA up 13.78% year-over-year

• Austin-Round Rock MSA up 35.35% YoY

• Dallas-Fort Worth-Arlington MSA up 23.55% YoY

• El Paso MSA up 14.40% YoY

• Houston-The Woodlands-Sugarland MSA up 15.19% YoY

• San Antonio-New Braunfels MSA up 18.37% YoY

• Sherman-Denison MSA up 24.53% YoY

Comments are closed.