There are two variables that determine the total amount of property taxes homeowners pay each year: the tax rate and the appraised value of the home. So don’t brag that you kept rates down, even lowered them, because homeowner’s tax bills continue to rise as the appraised value of homes in the district increase to the point that they offset any reduction in the tax rate. We feel happy when our property values go up, we feel like we have a little money in our pockets.
Then comes the property tax bill. Read this from Texans for a Fiscal Responsibility, I could not agree more:
Appraisal districts are comprised of appointees from those very same taxing entities, rather than taxpayers, giving the appraisal districts a perverse incentive to artificially increase revenue via appraisal increases any time those taxing entities don’t want to be held accountable for raising taxes.
Additionally, the appraised value of a home may increase by up to 10% each year, even when population and inflation growth rates are much lower.
Taxpayers should tell their legislators to pass meaningful appraisal reform to hold appraisal districts accountable to the public, not local taxing entities, and lower the cap on appraisal increases to protect taxpayers from dramatic increases in their property tax bills.
Texas is one of the highest states when it comes to paying property taxes. Of course, we don’t have a state income tax. Still, the property tax is an unfair burden to homeowners. We are tracking many bills in Austin this year that may limit the district’s ability to tax us on our rising values — stay tuned.