If you’re a Texas homeowner, then you are already well aware of the surging property taxes the Dallas-Fort Worth area has experienced over the years. When you bought your property, surely you expected some property tax increases, but nothing as substantial as what the real estate market is seeing in 2019.
Currently, Texas has property tax rates that loom over the national average. Here are some of the reasons why your annual bill has increased and what you can do if you feel like you should be paying less to live on your property!
Property Valuations Are the Main Culprit
Unlike most states, counties in Texas evaluate all commercial real estate and business personal property on an annual basis. Once these valuations are made, the outcome usually increases property values, therefore, raising the property taxes for the average owner in the area.
The problem is that the increases aren’t always accurate and can create an unnecessary higher bill for a property owner. Incorrect valuations are typically due to the valuations process itself.
The state takes an income approach and doesn’t exclude a business’s intangible value that isn’t related to the actual property. So, in a nutshell, property taxes are rising based on the financial success that a business’ property generates.
Local Governments Use Your Taxes to Fund Services
Another factor that keeps property taxes high is that there is no state income tax in Texas. This means that your property tax payments are going out to cover community essentials in your area that includes:
- Local School Districts;
- Police Department Needs;
- Street Maintenance;
- Government, and more!
While this may seem like a burden on the average taxpayer, studies have shown that states with higher tax burdens often have higher-quality public services, healthcare, and school districts.
What If I Feel Like I’m Overpaying?
If you feel like you’re in a situation where your property tax has been raised due to incorrect valuations, there is something you can do about it. Every year, people in your predicament take the steps to file for a property tax protest with the desire to decrease their annual tax bill.
However, keep in mind, the protest process is one that will require, time, effort, and expertise. It is recommended that before protesting, homeowners meet with a property tax consultant to ensure that they have a proper case.
Start the Dispute Process Today with The Hegwood Group
Don’t let potentially inaccurate property tax rates dig into your wallet this tax season. The Hegwood Group is a team of experienced property tax consultants that can help you determine if a dispute against your property tax bill is the right choice for you. Contact us today to find out more about our services and how we’ve helped people in your situation over the years.