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Growing tax bills
Galveston and Brazoria counties have seen median home values climb in value over the past several years, whereas tax rates have slightly decreased. This combines to result in increasing tax bills for homeowners. SOURCES: U.S. CENSUS BUREAU AMERICAN COMMUNITY SURVEY 5 YEAR ESTIMATES, GALVESTON COUNTY, BRAZORIA COUNTY, FRIENDSWOOD ISD, PEARLAND ISD, FRIENDSWOOD, PEARLAND COMMUNITY IMPACT NEWSPAPER
Homeowners have the opportunity to protest the value of their home if they believe it was appraised higher than it is worth—something Johnson encourages every homeowner to do. Through the protest process, residents can show evidence their appraisal should be lower, and if suc- cessful, they end up paying less in property taxes. Galveston County data shows in 2022, 52,600 property owners, or 41% of those who saw increases, protested their appraisals. The percentage of those who were successful is pending until all protests are concluded later this year. In 2021, 46% protested, and over 77% of them were successful. Johnson speculated many home- owners who saw increases in 2021 during COVID-19 had the time and motivation to protest, which may have diminished in 2022. “People are weary. I think that’s why fewer people are [protesting],” she said. “Most are too frustrated to do it, quite frankly, and it’s a shame.” Reform e orts In addition to protesting appraisals, homestead exemptions are another way homeowners can reduce their tax bills. These exemptions remove a portion of a home’s value from being taxed, and they cap how much a home’s taxable value can increase year over year to 10%. However, in Johnson’s and Henry’s opinion, protests and homestead exemptions are not enough. Galveston County is one taxing entity among many that tries to lower its tax rate every year to make up for growing property values. Since 2010, the county has decreased its tax rate 33% to $0.41494 per $100 property val- uation, according to county records. But even as the rate drops, property values increase faster, often leading to bigger tax bills for homeowners year over year, Johnson said. “It’s a bad system, and it’s one that needs to be xed,” Henry said. Johnson, Henry, Bonnen and others are therefore working on solutions. Bonnen did not respond to requests for comment. One idea is for the state to switch to a price-paid system. Under this system, a property’s appraised value would be locked to the amount at the date of pur- chase. It would remain there unless the house underwent major renovations or it was sold, in which case a new value
= (Home value ÷ 100) x tax rate
• Amount paid
Figuring out the formula
Galveston County*
Brazoria County**
• $5,273.15
$220K
+32% in home values in four years +26% in tax bills in four years
$205K
• $5,749.52
$190K
$175K
• $4,183.80
+35.6% in home values in four years +32.5% in tax bills in four years
$160K
• $4,339.73
0
2016
2017
2018
2019
2020
$2.597023
$2.57835
$2.549075
$2.53929
$2.480314
$2.7624
$2.704
$2.68689
$2.69867
$2.69804
*TAX RATES ARE EXAMPLES BASED ON A HOME BEING TAXED BY FRIENDSWOOD, FRIENDSWOOD ISD AND GALVESTON COUNTY. **TAX RATES ARE EXAMPLES BASED ON A HOME BEING TAXED BY PEARLAND, PEARLAND ISD AND BRAZORIA COUNTY.
Fighting back
among others, to convince lawmakers to provide property tax relief to Texans in the upcoming legislative session, which will begin in January. As tax-as- sessor collector, Johnson helps deter- mine and collect taxes. “People are getting taxed out of their homes,” she said. In addition, the rise in overall property values across the Greater Houston area has caused some prospective homeowners to be priced out of the housing market all together, ApartmentData.com CEO Bruce McClenny said. This results in those people entering the renting market to seek apartments and other types of rental housing, which has also caused an explosion in rent rates. Appraisal concerns Every year in each county, apprais- ers value homes and other properties at their market value as of Jan. 1 of that year. They determine this amount based on various factors, including what homes of similar sizes and loca- tion are selling for, said Jack Barnett, chief communications o cer for the Harris County Appraisal District. Homeowners are then mailed their appraisal, which shows what their home was appraised for and the value they will be taxed for. Many residences across the Greater Houston area are see- ing appraisal increases, o cials said.
According to Galveston County tax-assessor collector data, 128,000 of the county’s 230,000 parcels—or about 55%—saw appraisal increases in 2022. This is the highest amount since at least 2015, excluding 2021, which had more than 135,000 increases. “They are really bad,” Henry said of increasing appraisals, noting he owns a property that increased from $100,000 to $400,000 in a single year. Brazoria County did not provide information on property values by press time. Of Harris County’s 1.8 million par- cels, more than 97% of residential properties and more than 95% of commercial properties saw increases, according to HCAD data. “This year there was just a lot going on in the economy, and values kept increasing,” Barnett said. “It was a very unusual year for values going up.” In addition to the high number of increases this year, the increases them- selves are large, Johnson said. “We’re seeing huge value increases,” she said. “People are ooding the state, buying property. … That’s creating a very hot market.” Additionally, there is a shortage of inventory, making the market even hotter. Homes in Friendswood, where Johnson lives, can sell for $100,000 to $200,000 above the asking price to highly motivated buyers, she said.
Homeowners can le an appraisal protest, which varies by county but generally follows these steps: After receiving your appraisal notice, if you believe the appraisal to be higher than your home’s value, visit your county’s appraisal district website and le the required forms to protest. Some districts, such as the Brazoria County Appraisal District, allow you to give an estimate of what the home’s value should be. The appraisal district may countero er and allow you to accept its new o er without a hearing. If you still wish to protest, gather evidence of why your home’s value is lower, such as required repairs and cost estimates. Use the lower values of similar properties in your neighborhood as evidence that your appraisal should be lower, too. During a hearing with the district, you will be allowed to protest your appraisal and negotiate the amount . During the protest, tell the truth, or you lose credibility.
If an agreement is reached, you will be mailed the new appraisal , which will be the value you are taxed that year.
SOURCE: GALVESTON COUNTY TAX ASSESSOR COLLECTOR COMMUNITY IMPACT NEWSPAPER
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