Texas Insider Report: AUSTIN Texas Major urban areas in Texas experiencing some of the largest value growth in the nation have only 20-to-32 of their appraisal hikes being actual new construction increases" said Senator Paul Bettencourt chairman of the Senate Select Committee on Property Tax Reform & Relief busting another property tax myth by stating that new construction is not the major cause of property value increases around the State.
During statewide testimony to the select committee pro-tax groups repeated several myths that are not supported by empirical data. To dispel the misconceptions the District 7 senator launched an initiative earlier this month to highlight the facts about the States property tax system.
Its just poppycock to tell taxpayers the opposite to justify keeping tax rates the same while values skyrocket" said Bettencourt a Houston Republican.
According to 2015 data gathered from Harris County Appraisal District (HCAD):
The increase in market value in single family homes in Harris County was more than $32 billion with only an estimated $6 billion being due to new construction.- Based on this HCAD data new construction among single family homes accounts for less than 20 of total market increases in Harris County.
- Increases on existing homes account for more than 80 of the increase a 5-to-1 ratio between existing and new properties.
The widely-repeated myth that new construction is to blame for skyrocketing property values in Texas fails to line up with the most recent data" Bettencourt said. Between 2012 and 2015 for example Harris County and the City of Dallas have seen double-digit property tax levy increases little of which was due to new value added to the roll. Property tax levies statewide are growing at a pace three to four times faster than median household incomes. Taxpayers cannot continue to sustain these tax increases" Bettencourt concluded:Bettencourt was appointed by Texas Lt. Gov. Dan Patrick (right) earlier this year to serve as the chairman of the Senate Select Committee on Property Tax Reform & Relief.
The first property tax myth Sen. Bettencourt addressed was the incorrect belief that renters are not impacted by rising appraisals and increasing property taxes.
Using the most recent available data the senator showed that apartment values have grown three times faster than single family residences and noting:
Rather than getting a free lunch renters get eaten for lunch by property taxes."
The Senate Select Committee on Property Tax Reform and Relief has held hearings throughout Texas to listen to testimony about the property tax process and recommend ways to reduce the tax burden on property owners.- For archived broadcasts of the select committees 2016 hearings please visit the select committees official website.
