County Property Values Poised to Rise 15-20%

Get Ready for Sticker Shock at the Mailbox As New Tax Appraisals to be Sent Out Soon

Property owners should get ready for a surprise in the mailbox.

The Fayette County Appraisal District (CAD) plans to mail out tax appraisal notices by the end of next week. Chief Appraiser Richard Moring said homeowners can expect a 15 to 20 percent increase to their property tax appraisals this year.

“In some isolated areas, it may be more than that,” Moring said. “We’re seeing it statewide.”

Moring said the biggest increase in appraised values were in the Round Top area and the City of La Grange. That might come as a surprise to many, but it’s not as bad as some neighboring areas. Average home prices are up 44 percent in Bastrop County.

“I’d hate to be in their shoes,” Moring said.

Moring expect to see a large number of appraisal protests this year. Property owners have 30 days to file a protest after Fayette CAD mails the notices. He encouraged anyone wanting to file a protest to first call the appraisal district office.

“We want to encourage folks to visit with us and maybe informally we can come to some solution or agreement,” Moring said. “We expect to get a lot of protests, and that’s understandable.”

Those who cannot reach an informal agreement with staff can schedule a hearing before the appraisal review board, which is composed of five Fayette County property owners.

Moring said rising appraisals this year are mostly due to trends in the local real estate market.

“We’re getting to be a more appealing landing spot,” Moring said. “You have folks moving this way from Austin. Houston is getting closer. Supply and demand is driving it as much as anything.

Construction costs are also driving rising appraisals, Moring said.

“Land prices are going up, too,” Moring said. “But most of that falls under ag use, so you don’t see it as much in your value notice. The folks with residential properties are going to feel it.”

Those with mineral properties could see appraisals increase anywhere from 50 to 70 percent, Moring said.

“That’s due mainly to the price of crude and gas and also production,” Moring said.

Moring estimated overall property value of $3.8 billion across Fayette County. That’s up from $3.5 billion last year.

Moring provided the following average home values for the past ten years in Fayette County:

2013 - $117,426

2014 - $119,746

2015 - $125,180

2016 - $141,669

2017 - $146,342

2018 - $164,234

2019 - $167,584

2020 - $172,557

2021 - $179,062

2022 - $207,754 (preliminary)

That amounts to a 77 percent increase since 2013. The Record asked Moring if his office has seen an increase in delinquent taxes during that time period.

“I don’t think so, and that’s kind of surprising,” he said. “Our collection rate stays pretty constant at 98 percent after it’s all said and done.”

Increasing property values lead to bigger tax burdens for property owners. Many have to get on a payment plan to afford their taxes.

“It is heartbreaking when you see people come in here monthly to make their tax payment,” Moring said. “It’s basically another monthly bill they have to deal with. “Moring said a few provisions in state law give property owners some protection. Most importantly, homestead properties cannot increase in appraised value more than 10 percent over the previous year.

“Your market value can continue to climb, but your assessed or taxable value has a cap on it, which gives you some protection,” Moring said.

In addition, in 2019 the State Legislature placed stricter limits on how much local governments can raise their property tax rates before triggering an tax rate election.

“It used to be eight percent and now its 3.5 percent before you have to get voter approval, so that’s some additional protection for taxpayers,” he said.

Moring wished to remind property owners that his office is required by state law to appraise properties according to market value.

“The state comes in and does a property value study every two years,” he said. “We’re in one this year. They’ll come in and test our values. They require us to be appraising at market value.

“If they deem that we’re outside of what they call a ‘confidence interval,’ then the schools become at risk of losing state funding,” Moring said. “It’s a process and it’s not overnight, but it does put you in the cross hairs. That’s a place we don’t want to be.”

The May 7 Constitutional Election also includes two propositions dealing with property tax relief.

Proposition One would extend school tax relief enacted in 2019 to elderly and disabled property owners whose taxes were frozen at the time. Proposition Two would increase the homestead exemption from $25,000 to $40,000.

“I’ll suspect they’ll both pass overwhelmingly,” Moring said.