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Homeowners are feeling the pressure as Hays County officials prepare to set the property tax rate for 2023.
Hays Central Appraisal District Chief Appraiser Laura Raven reports home appraisal protests are up 10% from last year.
HCAD has received 34,441 property value appeals, a figure representing roughly 30% of the area’s total properties.
In addition to the protests, HCAD is contending with more than 100 appraisal-related lawsuits.
Hays District Court records reveal that 154 lawsuits were filed against HCAD this year and that 108 of those lawsuits were filed within the past two months.
The appeals follow what Raven calls a “tremendous rise in home values” over the past few years.
In 2022, year-overyear median home prices rose by 18%, and nearly three-quarters of all listed homes in Hays County are now between $300,000 and $749,000, according to data compiled by the Four Rivers Realtors Association.
HCAD appraisers determine the Jan. 1 market value of properties each year, according to Raven, values which are dependent on supply and demand.
“Appraisal district values reflect market activity,” Raven said. “Even though new residential developments continue to be approved by local governments, there hasn’t been enough inventory [homes available for purchase] to meet the demand from buyers. This drives values up.”
Appraisals and Property Taxes
Appraisal districts are responsible for compiling a list of properties and their market values each year and turning in that list — known as a certified tax roll — to local taxing entities, such as schools, cities, and counties, according to the Hays County Tax Office website. The taxing entities take that information and set a tax rate based on their revenue needs.
Because most property taxes are ad valorem, or “according to the value,” a homeowner with a higher home valuation would ultimately pay more in taxes under the same tax rate.
Raven explained that HCAD does mass appraisals, determining the value of a group of homes based on categories such as geographic area, quality of materials, and workmanship.
Occasionally, residents will disagree with the categorization of their home and file an appraisal protest, according to Raven.
Four Rivers Realtors Association Director of Government Affairs says he believes taxpayers disproportionately blame CAD for high property taxes.
“I will not say that the appraisal districts don’t ever do anything wrong and they’re not ever wrong,” Lee said. “But they’re not as wrong as you think they are. We as property owners need to take the responsibility to not just yell at CAD, but to go to our rate setting hearings and take our stance there. Because that is where the biggest impact is going to be made when it comes time to pay your tax bill.”
In 2019, the Texas legislature passed Senate Bill (SB) 2, the Texas Property Tax Reform and Transparency Act. SB 2 capped property tax revenue growth for cities, counties, and certain special districts at 3.5% annually and allowed taxpayers to vote on tax increases, according to the Texas Public Policy Foundation.
Hays County will hold a public hearing on the proposed tax rate on Sept. 13. Adoption of the tax rate will follow on Sept. 20.
Hays County has its own Truth in Taxation webpage. For more information on tax rates in Hays County, visit hayscountytx.com/documents/ truth_in_taxation_.
