Dallas, Fort Worth taxpayers could see higher property tax bills despite lower rates

Homeowners in Dallas and Fort Worth could see higher property tax bills this year despite both cities voting to lower their property tax rates.

The Fort Worth City Council is considering lowering the city's property tax rate. However, the move wouldn't result in an overall tax bill decrease, the Fort Worth Star-Telegram reported.

A homeowner with a $300,000 property would pay approximately $1,758 in property taxes – more than a $400 increase since 2016, according to the Star-Telegram. Because of increasing property values the city will see $2 billion more in revenue for city projects over the next five years, the newspaper reported.

Dallas officials are also considering a lower property tax rate for next year that would be .30 cents lower for every $100 of valuation, CBS DFW reported. However, the cuts would be neutralized by an 8% overall spending increase in the city's $1.5 billion budget, according the Texas Scorecard reported.

The effort didn't sit well with some members of council.

"Our residents deserve for us to do the work needed to reduce this tax rate so they are not taxed out of their homes and apartment rents don't continue to rise out of control," Councilmember Cara Mendelsohn told the City Council last month, according to CBS DFW. "Let's give our taxpayers some comfort that we understand the big tax burden and the difficulties they face through this pandemic."

Both city councils are set to vote on the new property tax rates in the coming weeks.

One reason residents in both jurisdictions can expect to see higher tax bills despite lower property tax rates is the volume of home sales in the area. As home values soar, property owners are left to pay heftier tax bills even though their tax rates are decreasing.

According to data from the National Association of Realtors (NAR), homes in Texas have appreciated in value by more than 11% in the last year.

Homebuilding has also not been able to keep pace with demand. Texas homebuilders have acquired nearly 50,000 homebuilding permits as of May 2021, according to NAR data. Because of this, NAR anticipates prices increasing by more than 4.7% over the next 12 months.

Original Location: Dallas, Fort Worth taxpayers could see higher property tax bills despite lower rates


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