Tarrant county homes are assessed 7.1% higher than market value for 2023.

DALLAS, TEXAS, UNITED STATES, May 9, 2023/EINPresswire.com/ -- Tarrant Disconnect – Home Values Up 2 to 4%; Tax Assessments Up 23.6%

Tarrant County property owners are stunned by the 2023 notices of assessed value. The greater Dallas metro area sale prices increased by 3.9% and Tarrant County median home sale prices fell 1.5% in Tarrant County from January 2022 to January 2023, but 2023 property tax assessment are up 23.6%. The typical Tarrant County home has a tax assessment 7.1% higher than market value. Because the typical Tarrant County home is assessed 7.1% higher than market value, homeowners face property taxes $671 higher than if their home was assessed at market value. This is before considering property tax protests, exemptions, and tax rate compression. Property tax assessments for owners of homes and commercial properties are generated by Tarrant Appraisal District (TAD).

Home Price / Assessment Summary
The Tarrant County median home price fell from $325,000 in January 2022 to $320,000 in January 2023, a 1.5% decline based on a study of 24,141 Tarrant County homes conducted by O’Connor. The median time adjusted sales price was $320,000 but the median 2023 property tax assessment from Tarrant Appraisal District is $344,845. Based on an assessment of $24,845 ($344,845 - $320,000) in excess of market value and a 2.7% tax rate, homeowners will pay an extra $671 in 2023 property taxes. This estimate of an additional $671 in property taxes is before property tax protests, homestead exemptions, and tax rate compression.

Why Are Tax Assessments Off by 7.1%?
Tarrant County home sale price trends in 2023 included a 15.4% rise during January 2022 to June followed by a 14.7% decline from June to January 2023. The median sales prices for key months are summarized below:

January 2022: $325,000
June 2022: $375,000 – up 15.4% from January 2022
January 2023: $320,000 – down 14.7% from June 2022

Effective Date of Tax Assessment is January 1 of Each Year
The effective date for 2023 property taxes is January 1, 2023. Taxes are paid in arrears in Texas, so this assessment is for taxes due in January 2024. There is no ambiguity regarding the effective date. Texas Tax Code 23.01: Except as otherwise provided by this chapter, all taxable property is appraised at its market value as of January 1.

2022 Sales Price Trends Atypical and Do Not Fit Appraisal District Modeling Tools
2023 Texas property tax assessments are the most egregiously overvalued ever in the 178 years Texas has been a state. Before 1980, tax entities in Texas performed their own assessments and were typically well below market value. In 1980, county appraisal districts (CADs) were created, and they have historically valued residential property at around 93 to 99% of market value. This tax year, excess property assessments are setting record highs. O’Connor has studied data released by multiple county appraisal districts and the results are not good for Texas property owners. Flawed methodology has led to assessments that are through the roof, which results in record extra taxes.

Every homeowner in Tarrant County should protest in 2023. Based on O’Connor’s analysis, 76% or more than three quarters of Tarrant County residential property is assessed above market value. Fortunately for homeowners, the appeal process offers a legitimate means to achieve relief and we anticipate record number of property owners will take full advantage of this mechanism to counter these excessive assessments. The protest deadline is May 15th. Homeowners who file a protest can obtain a free hearing evidence package upon request; simply send a note to your appraisal district asking that it be mailed to you.

Tarrant County homeowners across all property value ranges are feeling the sting, but the most considerable escalations in value are for properties in the $1M to $1.5M range and those over $1.5M. Increases in assessments are up unbelievably by 30.5% and 39.6% respectively. Historically, property owners of high-valued properties are more likely to protest and 2023 stands to be no exception, with record numbers of protests expected.

Residential property owners in Tarrant County are seeing a rise in value assessments in direct proportion to the increase in living area by square footage. That is to say, the greater the size of the home, the higher the spike in assessed value percentage, with homes over 8,000 sq. ft. receiving 2023 values up a mammoth 34.8%!

Both ends of the spectrum are winning if the contest is to achieve the highest percent value increase for 2023. Single-family homes in Tarrant County built before 1960 show assessments up 23.5% and homes constructed in 2001 and since have an even greater surge with 2023 values up 26.6%.

The protest deadline is May 15, 2023. Whether you are a residential or commercial property owner, protest now to be certain you don’t miss the deadline. There are three steps to the appeal process: informal, formal or appraisal review board, and judicial. O’Connor expects record reduction in Tarrant County tax assessments for 2023.

Remember, you do not have to accept the new appraisal value, it is a property owner’s right to appeal. Don’t pay more than your fair share. Record levels of property tax protest are expected to follow.

About O'Connor:
O’Connor is among the largest property tax consulting firms in the United States, providing residential property tax reduction services in Texas, Illinois, and Georgia, as well as commercial property tax reduction services across the United States. O’Connor’s team of professionals possess the resources and market expertise in the areas of property tax, cost segregation, commercial and residential real estate appraisals. The firm was founded in 1974 and employs more than 600 professionals worldwide. O’Connor’s core focus is enriching the lives of property owners through cost effective tax reduction.

Property owners interested in assistance appealing their assessment can enroll in O’Connor’s Property Tax Protection Program ™ . There is no upfront fee, or any fee unless we reduce your property taxes, and easy online enrollment only takes 2 to 3 minutes.

Join the Property Tax Protection Program™ and O’Connor will do if for you for half the savings. Call / or enroll on line; relax; and save. We helped owner save over $170 million in property taxes in just 2022.

Patrick O'Connor, President
O'Connor
+1 713-375-4128
email us here
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