Check your mailbox. You are about to get a shocking notice from the taxman. No not the IRS, your local County Appraisal District. Don’t faint when you open the notice and see the increase in your property valuation.
All of these new Texan’s that are moving her for jobs are looking for and buying houses. With the inventory of new and resale houses at a historic low, it is simple economics. A lack of supply with an increased demand equals an increase in price.
How much are houses increasing?
According to several of the local county chief appraisers. the increase is spectacular. In Denton County, chief appraiser Rudy Durham says. “A decade ago first-time homebuyers were in the $150,000 range now it’s $250,000.”
But the real sticker shock is in Collin County where the average house will appraise for $312,000. That is a 9.5% increase over 2015, where the average house was $285,000 according to Collin County chief appraiser Bo Daffin.
What can you do?
File a protest by May 31, 2016. Protesting is available online and it is as easy as it is ever going to be.
How can you do it?
Go online and look at the values for the houses in your block and neighborhood. Find a house with the same or similar house plan. I know yours is “custom”; however, there is another one just like it, you have to look.
Find the one that is lower than yours. Then you need to take pictures of yours and show the defects – cracked walls, a foundation in need of repair, lack of landscaping and fence deterioration. Get estimates for them and show the appraiser the pictures, the cost and why your house should be lower.
If your able to show your house is worth less you win. Even if it is a small decrease. Why? The 10% rule.
In Texas, a property’s value can only rise by 10% when it is owned by the same owner. It doesn’t matter that the house down the street sold for $100,000 more than the value of yours. By Texas state law your valuation can only rise by 10% each year.
Unfortunately, that does not work if you purchase a house, the 10% rule goes right out the window.
Filing a protest
Texans have a legal right to equal and uniform taxes. But the system is set up so the property owner must appeal to protest an assessed value.
An online protest is the first step. Or write or call your appraisal district to learn more about how to protest.
Deadline to file this year is May 31. A hearing follows.
Appraisal notices are mailed by late April. Not everyone receives one (only those facing an increase are required to get them), so look yours up online or call the appraisal district. Even if there’s no increase, you can still protest.
Learn more at www.window.state. tx.us/taxinfo/proptax/
County by County
Dallas County: DallasCAD.org
Notices are mailed April 30.
Collin County: CollinCAD.org
Notices are mailed April 29.
Denton County: DentonCAD.com
Notices are mailed April 29.
Tarrant County: TAD.org
Rockwall County: RockwallCAD.com
Notices were mailed April 22.
Do you need guidance on what to do or who to contact? Give any of us on the Tannery & Company team a call and we will let you know what steps to take.
I will be posting my process on my Facebook account if you want to follow along.
To schedule a time to speak with me, please click on MY CALENDAR
Michael Tannery CPA CDFA® AIF® ● CEO