The North Texas boom is back based on preliminary property tax values for Dallas and surrounding counties.
Dallas County’s preliminary 2014 total property tax value of $237 million is substantially higher than the previous high set in 2008 of $218 million, before the economic downturn.
At a briefing this week for Dallas County Commissioners, Chief Appraiser Ken Nolan said his office has sent out about 150,000 more appraisal notices than last year.
“That’s a reflection of the increase in the market where values have gone up,” Nolan said.
The report said 266,000 residential properties increased in value in 2014. About that many residential properties declined in value when the economy collapsed in 2009.
The 2014 rise is the largest number of Dallas County residential property value increases since 366,000 in 2002. In 2013, just 84,000 residential properties increased in value.
“We’re seeing some really strong signs with our local economy,” said Dallas County Judge Clay Jenkins. “We’re going to continue to see a rebound. There are still people out there who are hurting and we’ve got to continue to make this a broader recovery.”
Overall Dallas County preliminary property values are up 9.9 percent with commercial property posting the largest increase of 15.11 percent. The City of Dallas preliminary property value increase is 10.61 percent.
The County’s overall value is subject to change after taxpayers appeal their appraisals. Around 19,000 homeowners have already appealed this week and Nolan expects the number could rise to 90,000 by the June 2 appeal deadline.
Bunny Dotson filed an appeal of the $25,000 increase she found on the Midway Hollow home she has owned in Dallas since 1955.
“I was just shocked,” Dotson said.
Dallas County Commissioner John Wiley Price said rising property values are also producing rent increases, which are making it difficult for some tenants to stay in places they have lived before.
“What you are basically seeing by rental rates is a gentrification,” Price said. “I’m seeing people, I’m seeing poor people get pushed further out.”
Denton and Collin counties also posted preliminary property tax value increases.
Denton County reported an overall value increase of 17.4 percent. Commercial property values increased about 35 percent and residential about 10 percent.
Collin County preliminary property value is up 7.01 percent. Residential property is up an average of 8.53 percent with 211,000 homeowners seeing an increase. That number of appraisal hikes represents 89 percent of Collin County homeowners.
The increased value means local government will likely see substantial tax revenue increases to provide services.
“Because the economy is growing it’s easier to meet those needs,” Jenkins said.
As property values increase, taxpayers will face higher bills unless local governments drastically cut tax rates.
“It’s a little bit difficult,” Dotson said.