We all want to pay our fair share of taxes, but tax appraisal districts are increasingly forcing a sizeable percentage of Dallas Fort Worth area homeowners to pay inflated tax bills based upon an assessed "tax value price" that exceeds real market values, which as it turns out is a violation of the tax statute. Yeah, ouch!
Today, the nuisance of overvalued Texas tax assessments has become an endemic problem. It is not unusual for Metroplex homeowners to see an assessed tax value in their 2019 Tax Notices, that are $50K or more over actual real market values. Many homeowners may not realize they were paying more taxes than they owed until they sell their home for less than their tax assessed value.
How can this problem be fixed? Well, outside of everyone being forced to file a tax protest, how about passing a law that limits assessed tax value to 80% of estimated market value. That should give enough leeway in the math to prevent overvalued assessments. Then freeze all Texas property tax rate increases and tie any property tax rate increases to strict voter approval. You know for years, on average, most DFW Metroplex homes appraised for around 80% of market value, but the last real estate boom ended that as government expenses rose sharply to meet inbound population demands.
Yes, you can call it a property tax crisis, when homeowners are paying upwards of a $1000 or more in annual property taxes they don't legally owe. If the Texas government and taxing appraisal districts do not soon find a new, more fair and balanced method of taxation, then the real estate market itself could begin to suffer as homes become less affordable due to inflated property taxes.
Texas, it is time to reform property taxes. The opinions are my own.
Mike Askins, Realtor, Owner ARG
Got questions for Realtor Mike? Call me at 214-727-3686 (mobile)