Katy - South Fulshear Edition | July 2023

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APPRAISAL JUMPS Over 96% of Harris County residential properties saw appraisal increases this year.

retirement to pay property taxes. “I hope to retire in the next three or four years,” Franklin said. “But every year my taxes go up and up—and I mean every year.” Franklin also owns an investment property in the northwest quadrant of the city—where demographers such as Population and Survey Ana- lysts report most development is happening. But attempting to hold out until its value increases is becom- ing more dicult, she said. “[Eventually] it’ll be on a four- lane divided road, like any other big street around here,” Franklin said. “If I can hold on to it that long, it’s going to be worth probably $2 million or $3 million, … but I don’t want to pay [$500,000] in taxes on it.” Legislative eorts The state House and Senate each introduced bills in late June with dif- ferent methods for reducing property tax bills. An agreement was reached July 10, according to a release. Lawmakers initially led House Bill 1 to cap appraisal increases at 5% annually and reduce school district taxes by 16 cents. Senate Bill 1 previ- ously proposed a 10-cent reduction in school district taxes. Additionally, senators proposed increasing the homestead exemption for school dis- tricts from $40,000 to $100,000. During a second special session, legislators announced a compromise. Under the new plan, school district tax rates would be compressed by 10.7 cents, which is slightly higher than the Senate’s original plan and much lower than the 16.2-cent reduction the House originally proposed. However, the homestead exemption on school district taxes would increase from $40,000 to $100,000, as the Senate

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‘UNBELIEVABLE’ INCREASES The percentage of Harris County residential properties that saw appraisal increases this year topped 96%, second only to last year at 97%.

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rates, which has added upward pressure on mortgage payments, Treviño said. In an unscientic web survey conducted from June 15-22 by Community Impact , Katy and Ful- shear residents in the survey indi- cated having to make spending adjustments to account for rising home values. Residents reported spending less on medicine and food or putting less money into retirement savings accounts. Fulshear resident and real estate agent Jerry Reeves said his property value has risen 30% since he pur- chased his home in 2018. Some of his clients have changed their minds about buying because of the high tax rates, he said. Katy resident Ida Franklin, whose home value grew 292% from $250,000 in 2011 to $980,000 in 2022, said in the survey that she has had to sacrice funding her nearing

according to Fort Bend Central Appraisal District appraisal data. Rising appraisals cause homes to have higher taxable value, causing residents’ property tax payments to increase. To address this problem, the state House and Senate proposed a bill in mid-July that would lower school district property taxes and raise the homestead exemption. Houston Association of Realtors Chair Cathy Treviño said the cur- rent market and economic situation is causing pressure on homeowners, buyers and sellers alike. “Prices [and] ination and things like that … are all going up, and sala- ries aren’t unfortunately going up as quickly,” she said. Upward trends Home values are rising due to an unprecedented combination of pres- sures on the economy, including fed- eral ocials’ move to raise interest

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SOURCE: HARRIS CENTRAL APPRAISAL DISTRICT COMMUNITY IMPACT

previous year. “We have seen two years of abso- lutely unprecedented increases in values,” HCAD Communications Administrator John Labus told Com- munity Impact . Similarly, an average home value in Fort Bend County with no home- stead exemption could have seen a 60.3% increase in value since 2020,

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