Paying property taxes is something that no homeowner enjoys. In fact, it may be one of the worst parts of home ownership. What’s even worse is when they go up. For residents of Texas’ 3rd largest city, it looks as though Dallas property taxes are going up. Again.
According to Dallasnews.com, residents of Dallas County can expect an increase in their property taxes for yet another year.
Two-thirds of homeowners saw an increase in taxable property values this year, driven by a red-hot real estate market, the head of the Dallas Central Appraisal District told the Dallas County Commissioners Court on Tuesday.
What’s Going On?
Supply and demand is a key factor driving the increase. As more people have moved to Dallas from elsewhere, the supply of homes has struggled to meet the demand. With more people and fewer houses, even a red-hot real estate market can’t keep pace.
As a result, home values are increasing. This is great news for people building equity in their homes. However, appraised values have increased by as much as 10% or more each year for the past several years.
High home prices can be great if the demand is there and a homeowner is willing to sell. However, for those not looking to sell the increased value only tacks on extra dollars come property tax time.
Final home values will be determined by July 25th. The county and other entities will decide on the rates for Dallas property taxes later this year. Many are hoping for some relief.
Commissioner Mike Cantrell said the increase in property values is a sign of a strong economy, but residents shouldn’t be punished with higher taxes. He would support lowering the county’s tax rate to the “effective rate” — meaning the county would receive the same revenue as last year, except for new construction.
The “effective rate” for Dallas property taxes would mean going from 24.3 cents per $100 valuation to 23 cents per $100 valuation. By doing this, the county would still gain $13.8 million in new revenue from new construction worth about $6 billion.
It remains to be seen what will happen.
Cost of Living
When it comes to determining your cost of living, location matters. Your city, state, and county may all impact your expenses, including property taxes.
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Download the City vs City app now and start comparing cities. If you’re thinking of moving, don’t make a move without first seeing what’s in store for your cost of living expenses!