Pearland - Friendswood Edition | July 2023

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“They are passing that onto renters,” Johnson said. Reform eorts Due to the growing problem, state legislators this year took sepa- rate attempts at reforming property appraisals. During the state’s 88th Legisla- ture, the House led House Bill 1 to cap appraisal increases at 5% annu- ally and reduce school district taxes by 16.2 cents. School district tax bills are the largest tax bills most home- owners pay each year. Meanwhile, Senate Bill 1 proposed a 10-cent reduction in school district taxes and increasing the homestead exemption for school taxes from $40,000 to $100,000, Johnson said. Homestead exemptions cap how much a resident’s primary home can increase in appraised value year over year. Additionally, homestead exemp- tions withhold a certain amount of value from being taxed by certain enti- ties. In Texas, homestead exemptions withhold value from being taxed by school districts. The House and the Senate could not agree on which legislation to pass, so Gov. Greg Abbott called for a special session to get the chambers to come up with a plan that includes reducing the school district tax rate. The rst ses- sion ran May 29-June 27 with no deci- sion, but on July 10, during the 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 “The increases have been increasing steadily over the years, even though we haven’t made any improve- ments to the property.” THERESA ELLIOTT, GALVESTON ISLAND RESIDENT WHOSE APPRAISED PROPERTY VALUE HAS INCREASED FROM LESS THAN $200,000 IN 1999 TO OVER $675,000 IN 2023 “He bought what he could aord, but now he can’t aord it. It’s not right.” PAMELA STUCKEY, FOUNDER OF THE BC TAX RESISTANCE GROUP, ON HER GRANDSON’S HOME’S VALUE, WHICH DOUBLED

Growing Problem Despite Galveston County lowering its tax rate every year since at least 2012, property appraisals are increasing faster, resulting in homeowners paying an average of $141.27 more in taxes to the county in 2022 than in 2012. That is a 19.64% increase in just over a decade.

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Average taxable home value

Tax bill

Tax rate

$250,000

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$200,000

. .

$150,000

. .

$100,000

. .

$50,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

SOURCE: GALVESTON COUNTY TAX ASSESSORCOLLECTORCOMMUNITY IMPACT

NOTE: 2023 FIGURES ARE PRELIMINARY.

than the principal and interest on their mortgage, Chad Waddell said. The Waddells are not alone; since 2012, the average taxable value of a house in Galveston County has increased from $119,891 to a pro- jected $249,097 in 2023—a 107.77% increase in 11 years. Despite consis- tently declining county tax rates, the average county tax bill has increased from $719.24 in 2012 to a projected $915.59 in 2023. Brazoria County Appraisal Dis- trict ocials did not return multiple requests for comment or data. The problem is severe enough across Texas that the state House and Senate both took cracks at passing property appraisal relief legislation during this year’s 88th Legislature and two special sessions. As of press time, both chambers were in the midst of voting on a compromise between both their original plans, said Cheryl Johnson, Galveston County tax-asses- sor collector. Johnson was tapped in June to be a member of the House’s newly formed Select Study Committee on Sustain- able Property Tax Relief working on legislative recommendations for sus- tainable property appraisal relief. “I believe the people in Texas are getting priced out of their homes, …

and we’ve got to do something about it,” she said. Local impact Pam Stuckey lives in the city of Bra- zoria and founded the Facebook group BC Tax Resistance group in 2019. In four years, the group’s membership has grown to more than 13,200 residents. Stuckey said she founded the Brazo- ria County group as a grassroots eort to protest sky-high taxes residents were experiencing. Some members of the group are experiencing their property appraisals doubling or even tripling in the span of a few years, eectively doubling or tripling their Stuckey said one reason residents are fed up with growing property appraisals is that it can’t be planned for. Residents can decide what to spend their money on, but that deci- sion is out of their hands when it comes to their tax bills. “You have no control on what they’re going to tax your house on,” she said. Each year, Texas appraisal dis- tricts, which are run by the state, are required by law to appraise residential and commercial properties at their fair-market value as of Jan. 1. This annual tax bills, Stuckey said. “It’s just criminal,” she said.

means homes are annually appraised by districts at the expected value for which they would sell. For instance, Stuckey’s grandson bought a house this year only for its appraised value to double, Stuckey said. “He bought what he could aord, but now he can’t aord it,” she said, noting he’ll have to take a second job to pay for the taxes. “It’s not right.” Rosharon resident Chuck Alexan- der’s appraised value has increased from $495,870 in 2017 to $871,650 this year—an increase of $375,780, or 75.78%, in six years. The growth in his property tax bills has made him cut down on eating at restau- rants, going to bars and the movies, and frivolous shopping, he said in an email to Community Impact . “All of these things cut down on Brazoria [County] sales tax revenue as well as hurting local jobs,” he said. “Once this starts, it’s just a vicious cycle of tax increases to make up for that lost revenue.” Johnson said rising appraisals also have an eect on rental properties. Commercial properties, such as apart- ment complexes, are increasing in appraised values just like single-family homes, and the renters are the ones who pay, she said.

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