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You’re likely scratching your head when it’s time to pay your property tax. This is mandatory and should be paid by everyone who owns taxable properties. It doesn’t matter whether you own residential or commercial property. Even when you have fully paid your mortgage, property tax remains a significant expense. To help assess how much tax you should pay, appraisal districts like the Harris County Appraisal District in Texas appraises your property. However, HCAD has increased the value of around 20% of houses by 20% and even more. WHAT ARE PROPERTY TAXES FOR? Property taxes are paid to the government to provide services for the country. This is where they get funds for public schools, free health services, public government officials like the police or firemen, and more. Without taxes, it will be hard to provide any free and quality services to citizens. That’s why it is a mandatory regulation to pay your property taxes every year. But that doesn’t mean you should be pa...

The   Harris County Appraisal District   is the biggest in the state of Texas. That’s why many property owners trust them in making property appraisals for them. But recently, HCAD has increased the property value of around 22% of houses this year. The increase is around 20% and even more for some properties. How do affected property owners deal with this and what does this mean? PROPERTY APPRAISAL In a nutshell,   a property appraisal   is the estimation of the value of a real estate property. It is mandatory in the   state of Texas   to have a real estate appraised at market value every January 1 of each year. This would include all taxable property whether it’s residential or commercial. HCAD, being one of the biggest, appraises both residential types and commercial real estate properties. They cover thousands of properties each year. However, it is impossible to cover every property and visit them personally to assess their real value. ...

Yearly properly appraisals are mandatory for different states in the United States. However, some do it every two years or so. Normally, appraisal notices are sent out to every owner of taxable properties on January 1 of each year. Then they have the right to protest their assessed value usually because it’s deemed too high. Indeed, there have been several appraisal districts like Harrison County Appraisal District in Texas that has jack up appraisal values of thousands of homes. Is this the new trend? INCREASED APPRAISAL VALUES Property owners under the appraisal services of HCAD have likely seen an immense increase in their appraisal value. Based on a sample of 54,612 houses, a full 22% has shown an increase of an average of 28%. This is incredibly high compared to the 3% increase of Houston Association Realtors. Since HCAD is the biggest appraisal district in the state of Texas, this begs the question if the chief appraisers are competing with each other to get the l...

As a property owner, it is essential to understand how to read a property tax bill.  Doing so will help you learn more about the way your property taxes are calculated and will ensure that you pay the  correct amount on time. LOOK CLOSELY AT YOUR TAX BILL AND CHECK FOR A NUMBER REFERRED TO AS THE PROPERTY INDEX NUMBER It is usually listed towards the top portion of the bill and refers to the type and legal description of your property.  Make sure that this information is correct before proceeding with paying your property tax bill. LOCATE THE OFFICIAL AMOUNT OF THE ASSESSED VALUE OF YOUR PROPERTY ON YOUR PROPERTY TAX BILL. This amount is calculated by your local government, usually at the county level, and is based on the estimated value of both the building itself and the site or plot of land where the building is located.  This amount reflects the value that the assessor believes your property would sell for if put up for sale on the open market on t...

If you are a business owner in Texas, you must appeal business personal property tax every year. Business personal property values are reassessed each year in Texas. “Collecting more taxes than is necessary is legalized robbery.” These words of wisdom, spoken by the 13th president of the United States, Calvin Coolidge, still ring true in today’s society for homeowners and business owners. Robbery may seem like a harsh word, but what would you say if someone tried to sell you one-year-old motel sheets for 90% of the original cost? Based on the appraisal district’s depreciation schedule, this is a fair deal. Most people would not consider this a fair deal and either reject the offer or request a lower price. This should be the same thought process when the appraisal district overassesses your business personal property (BPP). Texas law requires business owners to report BPP, personal property used for the production of income, to the appraisal district for assessment and ta...