If Dallas Property Tax Rates Are Going Down, Why Are My Payments Going Up?
Each week, Mansion Global poses a tax question to real estate tax lawyers. Here is this week’s question.
Q. I’ve heard that property tax rates might drop in the Dallas-Fort Worth area, but the word is I might end up paying more. How is it possible?
A. The property tax rate in the Dallas The square footage is expected to drop to 22.8 cents per $ 100 of assessed property value, from 23.9 cents last year, according to the county government.
The Dallas County Commissioners Court approved the rate on Wednesday, with the fiscal year scheduled to begin Friday.
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Although the rate is the lowest in 11 years, the county is expected to collect more property taxes next year.
“This budget will increase property tax revenues compared to last year’s budget by an amount of $ 29.4 million, an increase of 5.13% compared to last year”, according to the 2021 budget -2022.
This is because property values have increased.
The median price of a home in the Dallas, Fort Worth and Arlington area was $ 349,381 in the second quarter, a 22.4% jump from the same period last year, according to the most recent data available from Texas Realtors, the state’s largest professional group.
This means higher real estate values - and property tax assessments – for existing homeowners as well, and government officials are taking note.
In 2019, Texas Gov. Greg Abbott signed a bill that caps annual municipal revenue increases at 3.5%, with some exemptions for new infrastructure projects. Voters are expected to approve a higher than 3.5% increase, according to Jim Popp, a partner at Austin, Texas-based law firm Popp Hutcheson.
Other Texas politicians have made lowering property taxes a priority.
A bill that would offer about $ 200 in tax relief to all Texas homeowners was passed by the state Senate last week. The bill allows a portion of state revenues of more than $ 8.35 billion to help reduce school tax rates.
The State House of Representatives is currently reviewing the bill. If passed, the savings would be available in the 2022-2023 fiscal year.
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