BELL COUNTY, Texas — With property appraisal notices being sent out, 6 News has received many questions about some of the massive increases in property values and what options property owners have.
6 News reached out to some experts on the topic, including Joshua Goodnight, owner of the Woodlands Property Tax Group. Woodlands Property Tax Group has over four decades of property tax experience and they want to ensure the public is informed when it comes to property taxes and the appeal process.
Goodnight said they represent property owners across the state but focus primarily on Bell, Coryell, Lampasas and McLennan Counties. 6 News asked him a series of questions to help the public better understand the wide-reaching matter.
Q: With appraisal notices out for this year, what are you all seeing or hearing from customers and locals in the area?
A: With appraisal notices just recently coming out, what we have seen so far are values that are over-market, as well as some that appear to be under-market. Naturally, we are hearing from new clients with increased valuations.
Q: How would you describe this year’s appraisals compared to previous years?
A: During COVID, our real-estate values increased significantly due to high demand, the work-from-home movement and lower interest rates. The appraisal districts are mandated by the state comptroller to be at market value and property owners felt these increases during that time. Significant increases in most cases. However, considering 2023 to current, interest rates are up, sales prices are down, there is an abundance of listings and concessions are again being made to get deals done. The days of bidding wars are long behind us. Taking into account that notices have just recently come out and our review is in the early stages, what we have seen so far in my opinion are mostly over-apprecised properties, both residential and commercial.
Q: What options do people have when they receive their notices?
A: We have recently posted information on our Facebook page with tips on how to maximize your property tax protest, as well as information on the Appraisal Review Board (ARB) and how they operate. When property owners receive their notice of appraised value, they have two options:
1- Fill out the protest form and hand deliver/mail it in or e-file their protest online. The e-file instructions are on the notice they received.
2- Currently, the appraisal district is allowing walk-ins for property owners. They will have an opportunity to speak with an appraiser about their value. If they cannot reach an agreement, they can proceed to the formal hearing before the appraisal review board.
Q: How busy are you all right now? What services do you offer when it comes to appraisals?
A: This time of year, we are extremely busy servicing existing residential and commercial clients, as well as new clients signing on with us. We are a full-service property tax consulting firm based in Salado. We handle appeals through the administrative level (informal and formal hearings) as well as arbitration and litigation.
Q: Will protesting appraisals actually benefit people?
A: Yes, we are adamant in recommending that property owners appeal their appraised value. Per the Texas Property Tax Code, Section 41.43, appraisal districts have the burden of proof when establishing the value of the property by a preponderance of the evidence. If the appraisal district fails to meet this standard, the protest shall be determined in favor of the property owner. In addition, property owners need to take in any comparable sales that they feel prove their assessment is over value. Furthermore, if the property owner has any deficiencies (roof replacement needed, HVAC, slab issues, electrical, etc.), it is highly beneficial to have a professional contractor give them an estimate to cure those issues before the informal or formal hearing. Again, appraisal districts mass appraise at what they believe is the market value of the property if it were to be sold as of January 1 of each calendar year based on the information they have collected for the prior 12 months. With that being said, if the property in question has any of these issues, a “buyer” would naturally want the cost to fix the issue discounted from the sales price. The same goes for the appraisal district. Let’s say you have a $25,000 roof replacement that is needed, the appraisal district should reduce the appraisal by $25,000.
Q: Will recently passed legislation geared toward tax cuts actually help property owners? Are we seeing the impact of the new laws in appraisals or is it too early?
A: Regarding recently passed legislation of non-homesteaded properties valued at less than $5,000,000, we are seeing some that have realized significant percentage increases year-over-year. However, the assessed value is capped at a 20% increase due to the new legislation. Like the 10% homestead cap, it will continue to increase at 20% per year until it catches the market value. For homesteaded properties and those that have the over-65 freeze, the increased exemption amounts should be impactful for them as well.
More from 6 News: