As property owners prepare for the Jan. 31 deadline to pay their property tax bills, many wonder why it increases each year, even if the rate remains the same. A property tax bill can increase for one of two main reasons: the local tax rates increase or the appraised value of the property increases. Tax rates are set by a number of entities, including cities, counties and school districts. These entities determine their tax rates each year during the annual budgeting process. Appraised values are determined by each county’s appraisal district each January. Property taxes are important because they provide cities, counties and school districts—among other entities—with a crucial stream of revenue. However, when taxes increase too fast, it can place an undue burden on homeowners and business owners. The discussion has garnered new momentum after Hurricane Harvey as many entities across the region, like Conroe ISD, decided to reappraise home values for 2017 and some homeowners could see lowered homes values in some areas in 2018.