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.
Galveston Appraisal District raised the overall taxable value of commercial properties by 40.70%, for the 7,150 commercial properties with 2021 values available. The 2021 increase in Galveston Appraisal District taxable values in summarized below:
Office 78.05%
Land 3.44%
Retail 104.23%
Warehouse 71.27%
Apartment 95.50%
Hotel 56.92%
Taxable values were increased for 745 of 782 office buildings. The total assessed value increased to $12.07 billion in 2021 from $6.730 billion in 2020. The increases are surprising considering the impact of COVID on office occupancy.
Land values soared 3.44%. The taxable value of vacant land rose from $31.13 billion last year to $32.36 billion in 2021. More than 39.09% of land owners saw higher taxable value; land assessments were increased for 407 of 1,041 tracts of land with 2021 values available. Demand for land for develop fell in 2020 due to uncertainty caused by COVID.
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 306 of 317 retail properties with new values available. The total taxable value rose to $10.78 billion from $52.63 billion in 2020.
Warehouse properties saw the largest increase for improved commercial properties in Galveston County, with values increasing a whopping 95.98%. The 2021 taxable value was increased for over half of properties with new values available.; 979 of 1,020 warehouses were increased. The total taxable value spiked to $12.25 billion from $71.10 billion in 2020.
Taxable values were increased for 525 of 544 apartments. The total assessed value increased to $22.65 billion in 2021 from $71.58 billion in 2020. The increases are surprising considering the impact of COVID on apartment occupancy.
Hotel properties saw an increase in Galveston County, with values increasing by 84.28%. The 2021 taxable value was increased for over half of properties with new values available; 59 of 70 hotels were increased. The total taxable value increased to $4.640 billion in 2021 from $2.957 billion in 2020.
The property tax protest deadline is May 17th. Galveston 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.
