Real Estate Blog

Tag: Property Taxes

  • How Local Policies Impact Homeownership Costs in Texas

    When people are purchasing a home, the majority of buyers are concerned about home prices and mortgage rates. There is however another significant factor that people tend to overlook: local government policies. It’s worth mentioning that policies such as the Texas homestead exemption, property tax exemptions, tax relief programs, and zoning regulations significantly influence the overall cost of homeownership.

    From tax rates to land use rules, local measures can make owning a home more affordable or more costly. Be ready to choose the right home purchase thus making an effective buying decision.

    So here are four of the local homeownership policies in Texas:

    1. Property Taxes and Local Rates

    Property taxes are one of the most common ways local governments fund essential services. These taxes are set by the city, county, or township government, and the proceeds from these taxes fund vital services like schools, emergency services, and neighborhood infrastructure.

    Two homes with the same price tag can have very different annual tax bills depending on their location.

    Some areas in Texas, such as San Antonio, Austin, and Harris County, offer tax breaks or exemptions for homeowners, while others, like Dallas County and Travis County, tend to have higher property tax rates. So you should also pay attention to your local taxes when you’re looking for a home.

    Keep in mind that local tax rates are periodically reviewed and adjusted.

    2. Zoning Laws and Housing Supply

    Zoning regulations themselves do not directly influence the cost of homeownership, but they do control what you can build, how dense an area must be, and even the size of a home.

    Zoning regulations also limit the development of affordable housing such as townhouses or duplexes, which may result in a housing shortage and drive home prices within that area higher.

    In Texas, areas with overly restrictive zoning laws, such as Austin, have created a housing shortage that has driven up prices and made it harder for buyers to find affordable homes. In other areas, such as Dallas, zoning laws are less restrictive, so Dallas has a large supply of affordable homes.

    3. Homeowners Tax Breaks and Tax Deductions

    A homeowner tax break is a local government policy that can reduce the homeowner of the tax burden. Through the program, homeowners are permitted to exempt a portion of the home’s value from taxable value.

    For example, homeowners in Texas who qualify can deduct up to $40,000 from the taxable value of their home. The tax break is intended for seniors, veterans, and people with disabilities. While tax breaks do not lower the market value of a home, they do significantly reduce the annual tax bill, making homeownership more affordable for many people.

    While not all areas of Texas offer these tax breaks, each area has its own rules. So it’s important for prospective homeowners to find out if their area offers tax breaks.

    4. Local Infrastructure and Community Growth

    You need to know if your local government is investing in infrastructure such as roads, public transportation, and utilities, as this will ultimately affect the cost of homeownership.

    Good neighborhood infrastructure can increase property values and make it more comfortable to live in the neighborhood, but even if your property value increases, you will be charged higher taxes as well.

    A well-developed neighborhood community tends to attract more buyers, thus increasing property prices. On the other hand, neighborhoods with poor infrastructure usually have lower house prices and face many other challenges, such as long distances from workplaces, unstable internet connections, and deteriorating neighborhood infrastructure.

    It is important to remember that a strong community environment not only increases property values but also the quality of life for its residents.

    Final Thoughts

    Local government policy tends to be overlooked, since people are more concerned with loan rates for their home or overall housing trends. Most people are unaware that local government policies can significantly impact the value of their property and the costs they incur.

    From tax rates to zoning regulations, the future value of your property is also affected by local infrastructure projects and government policies, which determine whether your property’s value will appreciate or decline, affecting the homeowner financially. The more you understand local policies, the better you will be able to protect your investment.

  • Top Reasons to Protest Your Property Taxes in Dallas

    Source: istockphoto.com

    If you own property in Dallas, you may feel like your property tax bill is higher than it should be. Many homeowners take tax assessments for granted, but these assessments are often inaccurate. The good news is that you have the right to protest these tax assessments and could save yourself thousands of dollars.

    Protesting property taxes may seem complicated, but with the right approach, the process can be easier and more rewarding. This guide will explain why reviewing your tax assessment is important and the steps to successfully file a protest.

    What Is a Property Tax Protest?

    A property tax protest is the process of appealing the assessed value of your property set by your local assessment district. This assessed value determines how much property tax you pay each year. If the assessment is too high, your tax bill will go up. The goal of a protest is to ensure that your property is assessed fairly and accurately.

    Inaccuracies can occur due to errors in the assessment or improper comparisons to similar properties in your neighborhood. Many homeowners who file a protest are successful in getting their taxes reduced.

    Why You Should Protest Your Dallas Property Taxes Now

    Paying too much? Here’s why challenging your assessment could save you thousands

    1. Property Assessments Are Often Too High

    Assessment districts use a mass assessment method that isn’t always accurate. Factors like neighborhood sales trends or ignoring the specific conditions of your home can lead to an overvalued property. By filing a protest, you can ensure a fairer assessment and pay your true value in taxes.

    2. Reduce Your Tax Burden and Save Money

    Dallas property taxes can be a major burden, especially as property values continue to rise. By lowering your assessed value, you can reduce your tax bill. You can use the savings for home renovations, paying off debt, or building your savings. While you can’t change your tax rate, you can still play a role as a voter in determining your local budget.

    3. Ensure Transparency and Accountability

    Protesting your property taxes isn’t just about saving money. It also ensures a more transparent assessment system. By filing a protest, you force the assessment district to prove that their assessments are accurate. This makes the process fairer for all homeowners.

    4. Adapt to the Changing Real Estate Market

    Assessment districts are often slow to adjust assessed values. If property values drop or the market weakens, you can protest to make sure your taxes reflect actual market conditions.

    5. New Laws Could Impact Your Taxes

    Texas lawmakers are considering major changes to property taxes. This includes increasing the home tax exemption from $100,000 to $140,000 and reducing school district taxes. However, these policies won’t take effect for the 2024 tax bill. By filing a protest now, you can get savings sooner without having to wait for regulatory changes.

    What is the Dallas Property Tax Protest Process?

    A step-by-step guide to lowering your tax bill the right way.

    Step 1: File a Protest

    Submit your protest to the Dallas Central Appraisal District (DCAD) by May 15 or within 30 days of the date your assessment notice is printed, whichever is later. You can file your protest online, by mail, or in person at a DCAD office.

    Step 2: Gather Supporting Evidence

    To support your protest, prepare evidence that your property’s assessed value is too high. This might include photos of property damage, repair estimates, sales data of similar homes in your area, or an independent third-party appraisal to support your claim.

    Step 3: Attend an Informal Meeting

    Before the formal hearing, you will have the opportunity to meet with a representative from the appraisal district. Here, you can present your evidence and negotiate a reduction in the assessed value. If approved, your case may be closed at this point.

    Step 4: Attend a Hearing with the Appraisal Review Board (ARB)

    If you can’t reach an agreement at the informal meeting, you can take your case to the Appraisal Review Board (ARB). The board will review your evidence and make a final decision on the value of the property to be used for taxes.

    Step 5: Consider Professional Help

    While you can handle the protest on your own, using a professional like Gill, Denson & Company can increase your chances of success. With a data-driven approach and tailored strategies, they can make sure your case is as strong as possible.

    Why Hire Gill, Denson & Company?

    Protesting your property taxes can be time-consuming and complicated, especially when you’re trying to maximize your savings. That’s where Gill, Denson & Company comes in:

    • Proven Results – Over 80% of their clients are successful in obtaining tax relief in 2024.
    • Personalized Approach – Unlike mass appeal firms, they handle each property individually, developing a strategy specific to each case.
    • Results-Based Pricing – No tax reduction, no fees. You only pay if they save you on your taxes.
    • Local Expertise in Dallas – With years of experience and strong relationships with local assessment districts, their team understands the ins and outs of the Dallas property tax system.

    Client Success Stories

    Real savings from homeowners and businesses who took action.

    • Homeowner in Dallas saves $25,648, reducing tax burden by 13.39%.
    • Commercial property in Las Colinas gets a 19.78% reduction, resulting in a tax savings of $15,607.

    Gill, Denson & Company handles the entire process, from filing a protest to representing you at a hearing, so you don’t have to.

    Upcoming Changes in 2025 Property Tax Laws

    Texas lawmakers are proposing changes that could significantly alter property tax bills statewide:

    • Increased Homestead Exemption: The tax exemption would be increased from $100,000 to $140,000, providing significant relief for homeowners.
    • School Tax Rate Compression: School district tax rates would be further reduced to ease the financial burden on Texas taxpayers.

    While these changes are promising, they likely won’t take effect until after the 2025 protest season. Filing a protest now ensures you don’t miss out on potential savings while you wait for the rule changes to take effect.

    Exercise Your Legal Rights and Save More

    Protesting your Dallas property taxes isn’t just about saving money—it’s about making sure you’re being treated fairly. If your home is overvalued or your taxes no longer reflect market conditions, taking action can make a real difference. Not sure where to start? Gill, Denson & Company is here to help. They have extensive experience handling Dallas property taxes and have helped 80% of their clients save on taxes in the past year.

    Don’t let inaccurate property taxes weigh you down. Take action now and get started with your protest with Gill, Denson & Company today.

    About the author:

    Charles Denson is the Co-Founder of Gill, Denson & Company. He is a native Texan and has been involved in real estate for more than 10 years. While studying at the McCombs School of Business at the University of Texas at Austin, Charles began his real estate career in real estate accounting, followed soon after by multi-family sales and then progressed into owning commercial assets alongside partners and investors. Through extensive knowledge of commercial real estate, finance and hands-on operational experience, Charles launched Gill, Denson & Company alongside Richie and Morgan Gill to focus on a service that is critical to the prosperity of any real estate investment. As a tenured entrepreneur, Charles has challenged old ways of thinking in the property tax consulting industry, in order to do what he loves most: helping others. In his free time, Charles enjoys golfing, hunting and spending time on the beach with his wife and his golden doodle.