Experts from O’Connor analyzed the budget, parcels, and Appraisal Review Board (ARB) of the Tarrant Appraisal District.
DALLAS, TEXAS, UNITED STATES, March 7, 2024 /EINPresswire.com/ — Tarrant Appraisal District 2021 budget totaled $25.5 million, and the Tarrant County ARB budget was $1.44 million. The Tarrant Appraisal District (TAD)2021 budget of $25.5 million equates to $14 per tax parcel (1,841,00 2021 tax parcels). The TAD budget surpasses the statewide average for 2020 by 5%, which stood at $26.92. Texas-wide appraisal budgets totaled $570 million, with TAD contributing 4.4% to the overall figure.
Appraisal District Budgets
The Harris Central Appraisal District has the highest statewide budget at $93,000,000. This is followed by the $25,500,000 budget of the Tarrant Appraisal District, the $23,500,00 budget of the Collin Central Appraisal District, and the $20,200,000 budget of the Travis Central Appraisal District.
The Tarrant Appraisal District’s budget increased by 29.4% from 2011 to 2021. The TAD budget was $19.7 million in 2011 and rose to $25.5 million in 2021, a 29.4% increase.
In 2021, the Tarrant County Appraisal Review Board held the second-highest budget among all counties at $1.4 million, with Harris County ARB leading with a budget of $3,250,000. Following Tarrant County were Travis County ARB at $1,201,000, Fort Bend County ARB at $1,090,000, and Dallas County ARB at $1,074,000.
Tarrant Appraisal District’s staff has grown gradually, from 204 in 2011 to 211 in 2021. Tarrant Appraisal District will have 117 appraisers in 2021, up from 86 in 2011. In relation to statewide appraisal district statistics, Tarrant Appraisal District has a modest staff.
Tax Parcels per Employee – Tarrant Appraisal District versus Texas
For the year 2021, the Tarrant Appraisal District has 8,434 tax parcels per employee, while the average for the whole state is 4,413 tax parcels per appraiser.
Tax Parcels per Appraiser – TAD versus Texas
Tarrant Appraisal District employed 1 appraiser for every 15,735 accounts versus 8,435 statewide.
Tarrant Appraisal District appraiser allocation follows:
The appraisers in the Tarrant Appraisal District are as follows: residential appraisals account for 46, or 39%, commercial appraisals for 46, or 39%, all other appraisals for 25, or 21%, and the total FTE appraisal is 117, or 100%.
Appraisal District Employee Allocation – TAD versus Texas
Statewide appraisal districts allocated their appraisers as follows.
Within the Statewide Appraisal District, the 2,485 appraisers are distributed across different roles: 1,264 (51%) focus on residential appraisals, 568 (23%) on commercial appraisals, and 653 (26%) on various other appraisals. The total full-time equivalent (FTE) appraisals add up to 100%.
Appraiser versus Administrative Staff at Tarrant Appraisal District
According to a statewide comparison of data gathered by the Texas Comptroller, the Tarrant Appraisal District employs more administrative/operations staff than appraisers. TAD staff is split at 55% appraiser and 44% administrative. The statewide staff allocation in assessment districts is 52% appraisers and 48% administrative.
Appraisal District Appraiser Allocation
Compared to residential properties in Tarrant County, other appraisal districts in Texas focus a greater portion of their appraisal resources on residential properties. While 51% of appraisers statewide concentrate on residential properties, just 39% of appraisers in Tarrant County evaluate homes. Comparably, 23% of appraisers in the state concentrate on commercial appraisals, whereas 39% of appraisers in Tarrant County value commercial properties. Tarrant County devotes 26% of its appraisers to industrial and commercial personal property.
Revaluation Cycle
Tarrant County reports they have revalued every parcel every year from 2014 to 2021. Conversely, statewide appraisal districts revalued about 80 to 90% of parcels during this period. The high frequency of tax assessment valuations differentiates Texas from most states. Most states revalue every 3 to 6 years.
Tax Levy – Tarrant County versus Texas
The Tarrant County property tax levy surged from $3.3 billion in 2013 to $5.3 billion in 2021, a 60% increase. Per capita property tax rates outpaced population growth, prompting Senate Bill 2 to cap levy growth at 3.5% for cities and counties (including new construction) and at 2.5% for schools (also including new construction).
Texas Levy Growth
The statewide tax levy in Texas increased by 69%, or 8.6% annually, from $43 billion in 2013 to $81 billion in 2021, which is significantly faster than the combined effects of population growth and inflation. The exponential increase in the tax levy led to a staggering 88% rise in the per capita tax burden from 2013 to 2021.
Tarrant County versus Texas Per Capita Property Tax Growth
From 2013 to 2021, Tarrant County witnessed a 42% increase in per capita property taxes, compared to Texas’s higher growth rate of 88%. The per capita property tax in Tarrant County rose from $1,769 in 2013 to $2,518 in 2021. Although the statewide per capita tax levy began at a lower point, its rapid growth aligned it with the Tarrant County level. In 2021, the statewide property tax levy per person reached $2,740, slightly surpassing the $2,518 in Tarrant County.
ARB Staffing – Tarrant County versus Texas
When compared to the statewide average, Tarrant County has an increased amount of staffing for appraisal review board members. Tarrant Appraisal Review Board members appraised 21,658 tax properties, compared to 11,498 statewide. This makes sense given TAD’s frequent use of the appraisal review board.
ARB Compensation – Tarrant County and Texas-wide
COVID Impact on Appraisal Review Board Staffing
Many, if not the vast majority, of ARB members have stepped down from traditional employment. This puts them at a higher risk of catastrophic health consequences if they get COVID. From 2019 until about October 2023, the Tarrant Appraisal Review Board has stayed at 85 members.
ARB Days of Hearings
Appraisal Review Boards in all counties pay appraisal review members to hear tax protests that are not settled in informal hearings. The ARB meets 5 or 6 days a week for several months in Texas’ major counties. With 158 days of ARB hearings in 2021, Harris County and Hays County tied for the top place. The next eight highest were: 3) Comal – 100 days, 4) El Paso – 97 days, 5) Tarrant – 90 days, 6) Johnson – 86 days, 7) Montgomery – 82 days, 8) Victoria – 80 days, 9) Travis – 71 days, and 10) Galveston – 73 days.
Why More ARB Hearings in Some Counties
The appraisal review board is the second of three steps in a three-step procedure. The first two phases are informal hearings and appraisal review board hearings, which are referred to as “administrative hearings” combined. Following the administrative hearings, property owners have the following options: 1) binding arbitration, 2) court appeal, 3) State Office of Administrative Hearings (SOAH) or do nothing. After the appraisal review board, about 98% of owners choose nothing.
Practice Tip: Consider continuing after the appraisal review board on a yearly basis.
Appraisal districts typically have tax protests for about 10 to 25% of the tax parcels, which account for 38% of statewide value. Tarrant County property owners file property tax protests for about 24% of tax parcels accounting for 58% of the value. More valuable homes are likely to be protested. Both commercial, industrial, and business personal property is protested most years.
Owners Who Don’t Protest
Owners of entry-level and mid-range homes are under-represented in property tax appeals. They do not protest for a number of reasons. The fact that major business owners complain yearly, on the other hand, demonstrates their opinion that annual property tax protests are the key to regulating property taxes, rather than just accepting whatever value the assessment district’s government computer throws out. Most major business owners, on the other hand, only undertake half the tasks, namely the administrative procedure.
Owners of Commercial Valued over $750,000
Most commercial property owners should continue with their appeals after the administrative hearings (informal and appraisal review board). Based on assessment district statistics supplied by the Texas Comptroller, the chances of another 10% cut are 90%. These are not accounting payable claims. The findings represent statewide aggregate judicial appeals.
Who is Watching Your Interests?
Tarrant Appraisal District has a budget of more than $25 million, with $1.9 million for the ARB, to appropriately assess Tarrant County’s 1.84 million tax parcels. Tarrant County had 211 employees in 2021, including 117 appraisers. The TAD appraisal team strives to do the impossible: appraise real and personal property in Tarrant County correctly and consistently. So, TAD is motivated to ensure that you are at 100% market value, but what happens if they overshoot?
Can You Afford An Ally to Look Out for Your Interests?
What Causes Tarrant Appraisal District (TAD) Property Overvaluation?
TAD uses mass appraisal to value 1.84 million tax properties each year. Aerial photography is used to “inspect” each property at least every three years. Aerial photography, of course, does not provide much information. Tarrant Appraisal District values property using “mass appraisal models” and missing property data. Some properties are assessed at less than 100% (yet may still be challenged based on unfair evaluation). Some properties are evaluated at more than 100% of their market value.
Are You Undervalued or Overvalued?
You will never really know if your property is over or under-valued unless you:
Each year, file a protest before the May 15th deadline
Request the appraisal district’s hearing evidence (this also freezes the material they may use at the hearing). Prepare for and attend the informal hearing (~70 to 90% resolved with a reduction), and
Proceed to the appraisal review board and, if necessary, beyond.
Practice tip: An informal appraisal review board hearing cannot be used to increase your property tax assessment.
What does TAD Valuation at 100% Mean?
When the Tarrant Appraisal District evaluates a property with a median level of assessment of 100% (relative to market value), it signifies that:
half of all properties have a market value that is greater than the market value. The data is depicted as a bell curve when arranged in a graph illustrating the link between the TAD value and market value. Some are just below market value, while others are twice or greater.
The 50% evaluated at less than market value are nonetheless eligible for a market value and uneven evaluation objection. Request that the appraisal district deliver you the hearing evidence packet when you submit your objection. In most circumstances, the TAD similar sales data will include at least a few useful comparable sales. If not, investigate your street and, if required, your area for assessment comparable that justify a decrease.
You may file a protest based on market value (they overestimated your property’s genuine market worth) or uneven evaluation. The idea that a suitable number of similar properties that have been properly adjusted suggests a lower value. Regardless of the reason for the objection, a reduced tax assessment decreases property tax.
What if You Don’t Have Time or the Temperament to Protest?
Employ us or a competitor. According to research, those who protest frequently pay lower property taxes, and the decrease in one year is typically influential in negotiations for subsequent years by lowering the base value.
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About O’Connor:
O’Connor is among the largest property tax consulting firms in the United States, providing residential property tax reduction services in Texas, Illinois, and Georgia, as well as commercial property tax reduction services across the United States. O’Connor’s team of professionals possesses the resources and market expertise in the areas of property tax, cost segregation, and commercial and residential real estate appraisals. The firm was founded in 1974 and employs more than 600 professionals worldwide. O’Connor’s core focus is enriching the lives of property owners through cost-effective tax reductions.
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