Property owners across Erath County should have received their new 2021 property appraisal notices from the Erath County Appraisal District. The notices were mailed on Monday, April 19, and for most, the news will be a mixed blessing.
While it is of obvious benefit to own property that is increasing in value, there is also a distinct downside, as property values rise, more than likely, so do property tax bills. The vast majority of property owners are going to find themselves with higher property values this year. Renters are unlikely to be spared, as landlords can be expected to pass on at least some of that increase to their tenants.
Recent legislation lowered the amount a taxing entity can increase taxes over the prior year. Actual taxes, however, will not be determined until the entities have adopted a tax rate in August and September. If an entity does not intend to raise taxes, when the valuations go up, the tax rates are lowered to bring in the same revenue as the prior year.
The economy has produced the hottest market in Erath County history for the last several years.
The current demand for property is stronger than the available supply, resulting in most properties not being on the market long and bringing higher sale prices. When values fall below market value, school districts are in jeopardy of losing state funding. The new appraisal figures are keeping appraised values closer to the actual market. Those homeowners who have seen the market value of their homestead go up by more than 10 percent will see the benefit of a state law that protects them from having to immediately absorb such large tax increases. That law keeps homeowners with the standard homestead exemption from paying taxes on any more than 110 percent of the previous year’s valuation. For example, a homestead with a market value of $100,000 last year may be valued at $120,000 this year, but the appraised value, which helps determine the amount of property tax due would increase only to $110,000. The remaining $10,000 increased value would be carried over to the next year. The protection extends only to residential homesteads and does not affect commercial buildings.
Senior citizens are spared from rising school taxes, for persons with an over 65 senior homestead exemption, their taxes are frozen for school purposes only. The valuation can go up, but they will not pay higher taxes unless something new was added.
The new assessments are available on the Appraisal District’s website at www. erath-cad.com
Property owners who believe their appraised value is higher than their property would sell for should come by or call the Appraisal District and speak with an appraiser. If an agreement is not reached, a property owner may file a written protest to have a hearing before the county’s Appraisal Review Board. The deadline to file a protest this year is Wednesday, May 19.