Fort Bend Central Assessment District (FBCAD) estimated value next week.
The market value of residential properties has increased by an average of 31% from 2021 to 2022. The market value of properties with a property exemption has increased by an average of 28% from 2021 to 2022. However, properties with a property exemption will have a cap of 10%. or limit the increase in their taxable value.
The overall value of commercial properties increased by 16% from 2021 to 2022. The increase was specific to each segment, with the market value of warehouses increasing by an average of 33% and the value of apartments increasing by 18% from 2021 to 2022 The value of commercial properties increased by an average of 7% from 2021 to 2022.
“Despite the pandemic, the real estate market in 2021 was very active and this trend has continued in 2022,” said Jordan Wise, chief appraiser.
“Fort Bend County is an area where families and businesses want to be. The 2022 tax year saw a 21% increase in the number of residential homes built and a 25% increase in the number of commercial properties built in the area. This is the first time in FBCAD history that we have added over 10,000 homes to the assessment roll in a single year. According to the US Census Bureau, Fort Bend County is in the top five best performing counties in the United States. This growth is certainly a major factor in the unprecedented increase in the market value of properties.
The Texas Property Tax Code and the state constitution require assessment districts to assess a property at its full market value beginning January 1. This is to ensure that all properties are valued fairly and consistently. For residential properties, the average change in values is a 31% increase. For properties with a Homestead Exemption, the average increase in value is 28%.
Several factors have driven residential property value increases for 2022; some of them the same factors that affected 2021.
Historically low interest rates, economic stimulus funds and the need for better work-from-home amenities have all encouraged home buying. Investors made record home purchases in 2022; almost 1 out of 7 homes was bought by investors at the national level. This increased demand, combined with record low supply of homes, has pushed up market values.
For commercial properties, much of the increase in market values is attributable to rising construction costs, rising land values and new developments. Construction costs have been affected by pandemic-related supply and demand issues that have made construction materials more expensive. There was an increased demand for land for commercial development due to the growth of businesses in the state. The growth was fueled in part by businesses that experienced better-than-expected rebounds from pandemic shutdowns and businesses following the movement of homeowners into the region. Increased demand for multi-family rental properties, which may have been spurred by buyers having difficulty buying residential properties, also played a role in the increase in values.
“We want every property owner to be fully informed of the different ways they can reduce their property tax burden,” said Jordan Wise.
“The Homestead Exemption remains the easiest way for a homeowner to reduce their property taxes by up to 20%. Beyond that, owners may be eligible for additional exemptions, including over 65s, disabled, veterans, or disaster exemptions, among others.
Owners can request exemptions through the FBCAD Exemptions Portal here. They can also find a list of exemptions by accessing the FBCAD homepage, selecting forms and looking under “Homestead Exemptions” and “Miscellaneous Exemptions”.
Owners can see what exemptions are on their property by viewing their Notice of Assessment or by visiting their account at https://esearch.fbcad.org/. Some disability and age related exemption information is not listed online to protect owner privacy.
Contact the FBCAD Information and Support Team at 281-344-8623 or send a
send to [email protected] for any question relating to exemptions.
“The protest process offers another way to reduce the value of your property, which can reduce your overall tax burden. As an owner, you know your property best and may have additional information specific to your property or market. For this reason, the state legislature has created the protest process to formally appeal the value set by the assessment district,” Wise said.
Owners can appeal their value immediately. The deadline to file an appeal is May 16, 2022 or 30 days after receiving your notice of appraised value, whichever is later.
For more detailed information on FBCAD’s online appeals process, please visit www.fbcad.org/appeals/.
Learn more about the appeal process for individual properties
owners and for small businesses, please visit https://www.fbcad.org/property-tax-videos/.
While the land values of residential properties increase by an average of 31%,
a mechanism is in place to protect the owner’s residence against rapid increases. Owners benefiting from a homestead exemption have their increase in assessed value capped at 10%. This means that if the market value of a principal residence increases by more than 10% year over year, the owner will pay taxes based on the value which is only a 10% increase. For the 2022 tax year, approximately 169,000 Fort Bend County homeowners will have their property cap protected against further increases in assessed values.
There is another measure in place to protect property owners from a rapid increase in their tax burden.
In 2019, the state legislature passed new laws (SB 2 and HB 3) that cap
amount that a city, county or other taxing unit can increase to 3.5% without holding an election.
For school districts, the cap is 2.5%. These have the effect of limiting the ability of taxing entities to collect property tax revenues, without receiving voter approval.
Property taxes are not only affected by property values; they are also affected by property tax rates. Local tax entities set their tax rates each fall. FBCAD has created a Property Tax Transparency website to provide the community with additional information on the tax rate adoption process. The goal of this tax truth website is to increase transparency in the
property tax system while educating the public on the tax rate adoption process. Visit www.fortbendtax.org to learn more.
FBCAD is also committed to increasing transparency around the evaluation process. A special page dedicated to 2022 values information can be found on the Assessment District website at www.fbcad.org/2022values/. For detailed information on a specific property, use the search function located at https://esearch.fbcad.org/.
The Fort Bend Central Assessment District is a political subdivision of the State of Texas established in 1982 for the purpose of discovering and assessing property for ad valorem tax purposes for each taxing unit within the district boundaries. The district has approximately 390,000 accounts to assess each year with a total market value of approximately $143 billion. The Fort Bend Central Assessment District serves approximately 225
tax units. For more information, visit www.fbcad.org.