Our central appraisal district has re-appraised all of the properties in the county.
Many homeowners are seeing their appraised values going up. State law limits the amount of the increase to 10% of last year’s appraisal.
A common misconception is that property tax bills will automatically go up as a result of an increased appraisal.
Actually each taxing entity is required to calculate the “effective tax rate”. From the state comptroller’s web site:
The effective tax rate is the rate the taxing unit needs to generate about the same amount of revenue it received in
the year before on properties taxed in both years.
Thus if every homeowner’s appraisal goes up 5% the effective tax rate will have to go down 5%.
Where one might see a tax increase is if their home value goes up more than the average increase of all of the other home owners.
When our local elected officials publish their new tax rates don’t make the mistake of looking at the rate (percentage) they publish.
If home values go up 5% and the taxing entity’s rate stays the same as last year they are increasing taxes 5% even though the rate is the same.
We deserve better