Most property owners believe appraisal districts should cut taxable values in 2021. 93% of Texas property owners surveyed by O’Connor thought appraisal districts should reduce values in 2021 due to the impact of COVID.
Dallas Appraisal District raised the overall taxable value of commercial properties by 14.4%, for the 47,455 commercial properties with 2021 values available. The 2021 increase in Dallas Appraisal District taxable values is summarized below:
Office 9.93%
Land 6.33%
Warehouse 9.93%
Apartment 24.73%
Retail 3.48%
Hotel 7.30%
Taxable values were increased for 970 of 4,364 office buildings. The total assessed value increased to $28.78 billion in 2021 from $25.82 billion in 2020. The increases are surprising considering the impact of COVID on office occupancy.
Land values soared 6.33%. The taxable value of vacant land rose from $6.72 billion last year to $7.29 billion in 2021. More than 24.4% of land owners saw higher taxable value; land assessments were increased for 2,467 of 10,079 tracts of land with 2021 values available. Demand for land for develop fell in 2020 due to uncertainty caused by COVID.
Warehouse properties saw the largest increase for improved commercial properties in Dallas County, with values increasing a whopping 9.93%. The 2021 taxable value was increased for over half of the properties with new values available.; 3,896 of 8,431 warehouses were increased. The total taxable value spiked to $13 billion from $11.75 billion in 2020.
Taxable values were increased for 3,321 of 3,649 apartments. The total assessed value increased to $48.66 billion in 2021 from $38.49 billion in 2020. The increases are surprising considering the impact of COVID on apartment occupancy.
Increases in retail properties were the biggest surprise. Scores of national retailers have filed for bankruptcy. Thousands of local tenants have abandoned leases due to COVID. Yet the taxable value of retail properties were increased for 749 of 3,978 retail properties with new values available. The total taxable value rose to $11.75 billion from $11.25 billion in 2020.
Hotel properties saw an increase in Dallas County, with values increasing by 7.30%. The 2021 taxable value was increased for over half of properties with new values available.; 45 of 410 hotels were increased. The total taxable value increased to $4.05 billion in 2021 from $3.75 billion in 2020.
The property tax protest deadline is May 17th. Dallas County commercial property owners are encouraged to appeal regardless of whether their value increased. There is a strong argument commercial values are lower in 2021 compared to a year ago due to COVID. Many if not most commercial properties are expected to have a lower taxable value compared to last year, but ONLY if the 2021 value is appealed.
There are no flat fees or upfront costs with O’Connor, and never a fee unless we reduce your property taxes. Simple and fast enrollment is free at: https://www.poconnor.com/commercial
or call 713 290 9700. Fast and free.
