Explained
Lankford said the decrease in residential market values is the largest he has seen in his career. However, state law requires properties’ assessed value—used to calculate property taxes—to match their market value, or what the property would sell for as of Jan. 1, in WCAD’s opinion. After a nearly 50% increase in the market value of residential homes last year, it left a gap between the two values.
“Assessed value has to increase another 10% per year until it equals market value, and that’s state tax code,” Lankford said. “So you will see an increase on assessed value every year until your market value and assessed value are equal.”
By the numbers
While the values of residential properties have decreased, the total market value of Williamson County—including residential, commercial, land and multifamily properties—rose from $159 billion in 2022 to $164 billion in 2023.
- Median value of residential homes decreased from $474,328 to $414,869.
- Market value of multifamily property increased from $10.59 billion to $13.96 billion.
- Market value of commercial properties increased from $16.9 billion to $21.81 billion.
- Industrial: 28.94%
- Office: 22.91%
- Multifamily: 17.32%
- Retail: 17.32%
- Entertainment: 9.50%
- Service-related: 4.47%
With the ongoing construction of major commercial facilities, such as the Samsung semiconductor plant in Taylor and accompanying supply businesses, County Judge Bill Gravell said the county could see “the most significant growth we’ve ever seen in commercial values."
“I think the market value within the next five years will easily increase an additional $50 billion,” Gravell said.
The rise in available multifamily housing has also been a driving factor in county's overall market value.
"If you’ve driven throughout the county anytime recently, you’re going to see apartment complexes being built everywhere you go," Lankford said. "That’s why you’re seeing that increase in multifamily value."
What else?
The WCAD received a record amount of protests to home values in the last two years. In 2021, there were around 63,000 protests, while the district received almost 80,000 protests in 2022. Lankford said homeowners who wish to protest the value of the properties with the intention of lowering their taxes this year will have to provide evidence to support a market value lower than their assessed value.
“The market value is what you’re allowed to protest,” he said. “If you’re not able to show evidence to bring the market value below that cap, or assessed value, it will not change your tax liability.”
What’s next
The Williamson County Commissioners Court will hold a hearing sometime in August to adopt the county tax rate.
