The preliminary property valuation countywide this year is $308.4 billion, compared with the 2019 certified tax roll of $261.9 billion, according to the Dallas Central Appraisal District. New construction accounted for roughly $8.2 billion of the total valuation.
Cities and school districts use the preliminary appraisals to help draft their budgets and determine tax rates for the upcoming fiscal year.
An acceleration of the commercial sector, especially in the area of apartments, is the driving force behind the uptick, Ken Nolan, the district’s chief appraiser told Dallas County commissioners May 19.
“We reappraised multifamily pretty much in the whole county because the apartment market has taken off,” he said.
Overall, the commercial market in Dallas County is valued at $131.6 billion, which is up nearly 25% year over year.
Nearly 60% of commercial properties were reappraised in the Dallas County portion of Richardson, which makes up roughly two-thirds of the city. The total taxable value for the city’s commercial properties in Dallas County totaled $4.6 billion in 2020, representing about a 20% increase from 2019.
Nolan said the residential market has begun to flatten out, especially in the northern parts of the county, where homes are more expensive.
The southern area, in contrast, has seen some of the largest value increases percentage-wise because of the availability of homes at a lower price point, Nolan said.
“We believe the sweet spot for homes is anywhere between $200,000 to $500,000,” Nolan said. “People now call that affordable housing in this market.”
Residential value increases between 2019 and 2020 will be less than what was seen in the last round of comparisons, Nolan said. This year, countywide residential value is estimated to have increased by 11.8% to $137.6 billion.
“That reflects some of that slowing down in the market and flattening out,” he said.
In the Dallas County portion of Richardson, residential market value increased by more than 10% to $5.3 billion. Richardson ISD saw an even greater value increase, with residential values in the Dallas County portion of the district growing by more than 12% to $14.9 billion.
All taxable property is appraised as of Jan. 1, which means this year’s estimated values predate economic hardships tied to the coronavirus pandemic.
“Be fully prepared that the full effects of what has happened this year will be reflected next January,” Nolan said.
In light of the current health crisis, The Texas Association of Appraisal Districts reached out to the governor in March to request taxpayer relief in the form of rolling values over from the previous year or resetting tax calendar deadlines, Nolan said. But the state refused to budge.
“We were basically told we are on our own,” he said. “The law is the law.”
The deadline for Dallas County residents to protest their property values is June 15 for real property and June 29 for business personal property, Nolan said. Appraisal Review Board hearings will begin in the third week of June, and DCAD hopes to have 90% complete by Aug. 13. Nolan said he plans to certify the tax roll by Aug. 20.