Lowered Property Tax Rates In DFW Won't Necessarily Translate To Savings
City leaders across the Metroplex are suggesting lowered property tax rates, but historic growth in values will likely dash savings for property owners.
Staff in Dallas and Fort Worth are proposing property tax rate reductions as part of their upcoming fiscal year budgets, according to draft documents. Fort Worth City Manager David Cooke is recommending a 2-cent rate cut to 71.25 cents per $100 valuation, while Dallas’ leadership is suggesting a 2.75-cent reduction to 74.58 cents per $100 valuation.
The 15% increase in property values seen by Dallas residents this year has given the city the latitude to offer a reduction, City Manager T.C. Broadnax said in his comments on the budget. The typical homeowner in Dallas could see a $70.60 annual reduction on the city portion of their tax bill, and the drop in Fort Worth could translate to $1,425 off the bottom line.
But many commercial and residential property owners across the Metroplex have seen their tax bills go up despite lowered rates. Unprecedented growth in property values often cancel out any money saved through a reduction.
In Plano, for example, the average property tax bill is expected to increase by more than $260 per year even with a 2-cent reduction in the municipal tax rate. Bo Daffin, chief appraiser for Collin Central Appraisal District, said the city’s skyrocketing property values, which increased by $97K for the average home, are to blame.
“Over the last couple of years, the residential property values have exploded, not just in Collin County, but pretty much across the state,” Daffin told KERA News.
Ballot measures to reduce the tax burden on Texas property owners have seen widespread support in recent months.
In May, Texas voters approved one proposition that effectively eliminates school district property taxes for seniors and disabled residents. The second raises the state’s homestead exemption. Both propositions, which garnered at least 85% of voter support, are expected to save the average homeowner $175 per year, according to Spectrum News.