Soaring tax appraisal values have North Texas leaders on alert over possible taxpayer revolt.
Dallas County Judge Clay Jenkins said he texted the Dallas Mayor Mike Rawlings and Dallas Independent School District Superintendent Michael Hinojosa about possible tax rate reductions after he saw the large increase in 2016 preliminary market value figures from the Dallas County chief appraiser.
"We need to look at this," Jenkins said. "Those homeowners, if we don't reduce the tax rate, are going to see an increase in the money they've got to pay the government."
Dallas County's 2016 preliminary total market value is up 14 percent, with residential property up 12.8 percent and commercial property up 18 percent.
Preliminary residential property value increases are up 13 percent in Tarrant County, 12.3 percent in Denton County and 9 percent in Collin County.
"That is not good for economic development, that is not good for our economy for people to be strapped with that big of an increase, when they're not seeing their wages increase," Jenkins said.
Chief Dallas County Appraiser Ken Nolan said it is the hottest real estate market he has seen since the early 1980s, but so far fewer taxpayers are appealing appraisals this year.
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"There's a lot of awareness in Dallas of the shortage of homes," Nolan said. "The amount of people moving here – State Farm, Toyota, FedEx, Liberty Mutual – tens of thousands of people moving here and there's not that many homes. There's not as many new homes as there once was. Consequently, existing home prices have gone sky high. It's just a matter of supply and demand."
Texas taxpayers who want to appeal their appraisal must file notice by May 31.
Nolan said Dallas County taxpayers can also visit the Appraisal District Office in person for informal visits with appraisers. He said evidence is needed to prove an appraisal is too high.
After appeals are finished, the chief appraiser in each county certifies a tax roll by late July and then local governments set tax rates to raise the money the feel necessary to provide services.
"It is an opportunity to look at our partners with this and see what's in the best interest of our citizens," Jenkins said.
Preliminary market values for the city of Dallas show residential up 13.26 percent and commercial up 19.48 percent. The Dallas ISD preliminary residential values are up 13.26 percent and commercial up 19.69 percent.
