May 11, 2022
On April 22, the Potter-Randall Appraisal District (PRAD) in Texas mailed appraisal notices, which have increased by 25% on average. This rise in valuation will, likely, lead to higher property taxes for residents.
Why Are the Values Increasing?
The rise in property values is not exclusive to Amarillo and its surrounding cities. This is a trend occurring across the state of Texas. From Austin to Houston, property values are swelling. Even smaller towns are witnessing exorbitant home prices. The question businesses and homeowners across the state are asking is, “why is this happening”?
The short answer is basic supply and demand. The rapid migration to Texas and the high demand for houses have caused quite the conundrum for the state. The supply of homes has not been able to keep up since new houses take a while to build. Houses are also becoming more expensive to build due to the rising costs of building materials. An increase in demand for homes without a corresponding increase in supply leads to higher property values and property taxes.
Jeffrey Dagley, the PRAD’s chief appraiser, stated that it is not the job of the appraisers to decide what the housing market is doing. They are just there to appraise the properties at market value.
How Much Will Property Taxes Really Increase?
This is the big question, isn’t it? For some, property taxes may not increase by as much as owners would expect due to tax rate compression and exemptions.
Tax rate compression lowers a tax rate by permitting the state to pay a portion of the tax burden. The Texas Legislature approved tax compression for taxes paid to Independent School Districts, which is a significant portion of property taxes.
Qualified homestead exemptions will also aid in alleviating higher tax bills. There are several types of homestead exemptions available in Texas, and those qualifications and forms can be accessed via the Texas Comptroller website.
If you feel your property was assessed too high, you can file a protest. Business owners still have time to contact a tax consultant who can protest the value on your behalf.