For the third year in a row, homeowners are surprised to open their recently mailed 2023 property appraisal notices from the El Paso Central Appraisal District (EPCAD).
This is the third year in a row that the Appraisal District has conducted a massive reassessment of properties in El Paso County. Homeowners began receiving appraisals for their properties in late March, and the remaining lots are expected to be mailed in April and May.
“Ours was up $99,500. Ugh,” a West Side resident said on the Nextdoor app, an online platform where neighbors connect.
Another asked for help on how to challenge the new appraisal.
“We just got our 2023 taxable value on our house. And it’s absurd! ”, Said another neighbor, adding that she hopes for help and a“ good result ”.
Home prices have been rising steadily in El Paso, according to data compiled by the Texas Real Estate Research Center at Texas A&M University. The research center shows that home prices increased an annualized 11% for the fourth quarter of 2022.
After last year’s appraisals, median home valuations in El Paso County soared nearly 20% to $189,709 in 2022, certified figures from the El Paso Central Appraisal District show.
Meanwhile, state legislators are trying to find ways to ease the burden on taxpayers, whether it’s increasing school tax breaks for homes or tightening the cap on home assessment increases. However, no set plan has been put into action as the state’s 88th legislative session continues.
El Paso Matters asked David Stone, El Paso Central Appraisal District Deputy Chief of Appraisals, to answer questions about what homeowners need to know about the latest round of appraisals and what they can do to protest if they feel the appraisal is too much. high.
El Paso Matters: How does the El Paso Central Appraisal District create an appraisal for a property?
Stone: The El Paso Central Appraisal District conducts mass property appraisals in accordance with the Uniform Rules of Professional Appraisal Practice (USPAP) and the Texas Property Tax Code.
There are three methods for valuing a property: the market approach, the income approach, and the cost approach.
Most non-income-producing properties are appraised using the market approach, which compares the property to similar properties that have recently sold.
Income-producing property is valued using the income approach, based on the rental income it generates. Although residential rental property produces income, it is generally evaluated based on the market approach.
If sales and income information is not available, a property will be valued using the cost approach: how much the property would cost to build under current economic conditions.
What is the trend you are seeing in valuations so far?
Stone: Property values are increasing again this year, but generally not as much as last year. Properties assessed using the cost approach are experiencing further increases due to rising construction costs.
What is your schedule for sending valuation notices?
Stone: Notices for most residential properties were mailed on March 31. Most commercial real estate notices will be mailed on April 14. Business personal property notices will be mailed in late April and May due to deadline dates. Almost all notices must be mailed by the end of May.
The El Paso Central Appraisal District used to do home appraisals every three years. Why does he do it every year now?
Stone: State law requires a reassessment at least every three years. State law also requires properties to be appraised at market value. When property values are stable, a reassessment every three years is all that is required; but the Appraisal District has never had a year where we didn’t reappraise some properties.
Over the last several years, we have seen great increases in the real estate market in El Paso. To keep up with the appreciation market, the Appraisal District has had to reappraise properties annually. The Texas State Comptroller’s office assesses our property values every two years, and state funding for local school districts may be adversely affected if our assessed values do not match market value.
This is the third year in a row that El Pasoans have received significantly higher property valuations. What is happening?
Stone: The real estate market in El Paso has been active for several years. A recent study has identified El Paso as the fourth best real estate market in the country. Six months of home inventory is typical for a balanced housing market. In 2022, El Paso had less than a month of inventory. As of January 1, El Paso had approximately two months of inventory. Although the market is slowing down, the demand continues to outstrip the supply.
I have not done anything to my property. Why does my rating keep increasing?
Stone – Even if you haven’t done anything to your property, it’s still desirable to potential homebuyers. When the demand for homes exceeds the supply, home prices will rise.
Does a higher valuation mean my property taxes will be paid?
Stone: Property taxes are based on the value of the property and the tax rates set by tax agencies. The increase in property taxes depends on the tax rates that are set by the taxing entities as the value increases. The closer taxing entities set their tax rate to the rate without new revenue each year, the more likely it is that they will not increase your property taxes.
State law says that the assessment for tax purposes of a residential property with a homestead exemption can only increase 10% per year. What does that mean?
Stone: Generally speaking, properties with an existing homestead exemption may not increase in appraised value more than 10% per year for property tax purposes.
For example, if your property’s market value was $200,000 in 2022 and it was re-appraised at $230,000 in 2023, your appraised value would be “capped” at $220,000 for 2023: $200,000 * 10% = increase in $20 thousand.
In future years, your assessed value will increase by up to 10% each year until your assessed value equals your market value, even if your market value does not increase. If the example property maintained the same market value of $230,000 by 2024, its assessed value would increase to $230,000, bringing the assessed value up to market value.
How do people protest your valuation if they think it’s too high?
Stone: You must file a written protest with the Appraisal District by May 15 or 30 days after the date of your notice of assessed value, whichever is later. The easiest way is to go to our website www.epcad.org and search your property.
Click on “property services” and then “protest form” to complete a protest and submit it online. A protest form is also included with your assessment notice. You can fill it out and drop it off at our offices, mail it, fax it, or email it.
What kind of evidence can help reduce an assessment? And what kind of evidence do people often present that isn’t helpful?
Stone: Good evidence includes:
• A Comparable Market Analysis, CMA, on your property by a real estate professional
• Photos of any problems with your property and professional estimates of the cost of repair, above normal wear and tear.
• Property appraisals
CAD appraisers will evaluate any evidence presented at informal hearings and the Appraisal Review Board at formal hearings, and determine how much weight to give it.
A property owner should check our website to make sure the appraisal district has the correct features and exemptions for their property.
A property owner may request evidence the appraisal district has for their property, which may support a reduction in value.
