Why are Property Taxes Increasing in Dallas?

The Dallas/Fort Worth metroplex used to be one of the least expensive areas in the country to buy a home or start a business. While it’s still more affordable than other areas, we’re seeing property taxes increasing for both commercial real estate as well as single-family homes. For our clients that own commercial real estate, here’s a look at why property taxes are continuing to rise every year.

Commercial Properties Become More Valuable From Property Taxes Increasing

As the city continues to rapidly expand, the need for commercial properties gets even higher. Supply and demand contribute a lot to the value of the property. Tax appraisers will often estimate the amount of money the property could make in a year and compare the property tax increasing rates with that of similar ones in the area. Given that the demand for space is increasing, the assessed value is following suit.

Tax Assessors’ Valuations Could be Inflated

While tax levies determine at what rate a property can be taxed, an estimated valuation of the property itself is entirely left up to the tax assessor. Of course, the assessor has a standard by which they must evaluate the property, however, there’s still room for discretion.

For the year 2015-16, the majority of residential properties saw their taxes go up significantly despite the tax levy having not been raised. Commercial properties fared a bit better than their residential counterparts. However, despite no levy increase, somehow properties all over Dallas are paying more in taxes recently; this may cause some residents to file a property tax protest.

Property Owners Don’t Take Advantage of Opportunities to Appeal

Sometimes a property’s valuation can be a mistake. While it’s unlikely the entire Dallas metroplex has experienced a mistake in their property valuation, it’s still a good idea to appeal your taxes. This process is confusing and often weighed down with legal jargon that most people don’t understand. At the Hegwood Group, we provide property owners the tax relief services they need to lower their property taxes.

The Hegwood Group Can Save You Money

If you suspect that there’s been a mistake made on your tax valuation, then don’t wait to appeal. Get in touch with our experienced property tax advisors to learn what you can do to reduce the amount of money you owe this year. We are your local property tax experts in handling property tax-increasing issues in Dallas.

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