What to know about your Tarrant County property appraisal — and how to get it reduced
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Rising home values: What to know about your Tarrant County appraisals
An unprecedented year for the North Texas housing market is likely to stoke homeowners’ discontent when their home value notices arrive.
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If walking to the mailbox in mid-April fills you with daily dread, you’re not alone.
North Texas’ real estate market is booming, and consequently, property taxes are expected to rise — by about 20% for Tarrant County homeowners, said Jeff Law, chief appraiser for the Tarrant Appraisal District.
Experts agree, they’ve never seen anything like it.
For Tarrant County homeowners, it’s never been more critical to ensure your property tax exemptions are in place and you understand the appraisal protest process. Here’s what you need to know.
The basics of appraisals
First of all, what exactly does the Tarrant Appraisal District do?
Every year, TAD appraises the market value of properties in Tarrant County for tax purposes.
Oh, I see. So TAD collects my taxes?
No. That’s the job of tax collector-assessor Wendy Burgess’ office.
Hmm. Does TAD set my tax rate?
Actually, no. TAD doesn’t do that either. That’s the job of taxing entities, like school districts, cities and the county. TAD just determines the value of properties in the county so these entities can set your tax rate.
Where can I see my new value for 2021?
TAD mails out property value notices starting Friday, April 15. You can also access this information on TAD’s website.
How TAD works
My home value increased 20%! That can’t be right.
Unfortunately, it very well may be. TAD Chief Appraiser Jeff Law said residential property values in Tarrant County saw a 20% increase in 2021.
Thanks to a severe lack of housing inventory, home prices in north Texas exploded last year.
“It’s the highest appreciation in one year I’ve seen since I’ve been in the business, and I got in 20 years ago,” said Chandler Crouch, founder and principal broker at Chandler Crouch Realtors.
How does TAD come up with a value?
TAD uses something called a mass appraisal system to annually appraise the county’s more than 750,000 commercial and residential accounts. That requires tracking updates that affect property values, like a new pool or a home addition.
To appraise residential properties, TAD uses market data in which it determines a value by comparing homes to similar properties that recently sold. When market data is unavailable, TAD uses cost data, specifically from the Moore Precision Cost Tables, to price out a home based on its features.
Exemptions
What exemptions can I use for my property tax appraisals?
First and foremost, there’s the homestead exemption, which applies to a homeowner’s primary residence. In Tarrant County, the homestead exemption caps your annual appraised value increase at 10%. So, even though property values rose more than 20% in 2021, homeowners who have this exemption will not see the appraised value of their properties increase by more than 10%.
Between 350,000 and 400,000 properties have a homestead exemption each year, said Law.
I’m a homeowner who qualifies for the homestead exemption. Will it automatically be applied to my property tax appraisal?
No, you have to apply for the exemption, which you can do online or by filling out a form found on the Tarrant Appraisal District website. Once you complete the application, you won’t have to do it again, unless requested.
What’s the deadline for applying for a homestead exemption?
The completed documents are typically due April 30 of the year for which the exemption is requested.
Are there other types of exemptions?
The year you turn 65, you qualify for an exemption that deducts $10,000 from your taxable value for school districts. It also places a ceiling on the amount of school taxes you pay each year at the amount you pay the first or second year you qualify for this particular exemption (whichever is lower).
There are also exemptions for people with disabilities, disabled veterans and surviving spouses of deceased veterans and first responders who died in the line of duty. More information on these specific exemptions are available on the TAD website.
Protesting
How can I protest my appraisal?
You can informally protest your appraisal online, via mail (by filling out the back of your value notice) or over the phone. Or you can hire a property tax professional to protest for you.
If you’re unsatisfied with the results of your informal protest, you can schedule a formal hearing with the Appraisal Review Board.
If you can’t reach a satisfactory conclusion through the formal protest process, you can file a lawsuit in district court or go through the binding arbitration process.
What’s the deadline for protesting?
May 16, 2022.
What kind of evidence should I provide for my protest?
“It is to your advantage if the inside of your house is not in great condition,” said Crouch, who helps people protest their property tax appraisals for free. He recommends providing evidence to show the home’s condition and estimates of the cost of repairs.
For example, if your home needs a new roof, you could provide photos of damage and an estimate for the repair from a contractor.
“If it’s a substantial type of repair, then the appraisal district will oftentimes give you a dollar for dollar reduction based on whatever that estimate is,” he said.
Crouch also recommends using sales data.
If similar houses in your neighborhood recently sold for less than your appraisal, you could provide that sales information to argue your appraisal should be reduced.
If I protest my appraisal could the appraisal district possibly raise my value?
Not unless the process reveals you’ve made a significant change to your property (i.e. installed a pool), and the appraisal district was not previously aware.
That happens “very, very rarely,” said Law.
If I protest online, does that mean I can’t do a formal protest?
No. As long as you don’t accept the value provided by the online protest process, you can still engage in the formal protest process.
What if we don’t reach a conclusion in the formal protest process?
If you choose to reject the value agreed upon by the Appraisal Review Board, you can pursue litigation by filing a lawsuit in district court or binding arbitration.
This story was originally published April 14, 2022 at 11:05 AM.
