Last week, I wrote a post about Dallas area homeowners receiving notices from the mortgage companies regarding their monthly mortgage payments are increasing. This is due to their home insurance rate increasing, or an increase in property taxes, or some combination of both (see https://wiseinsurancegroup.com/home-insurance-property-taxes-and-escrow-accounts/). It turns out they aren’t the only ones receiving these notes! Commercial building owners are also opening notices arriving in the mail from local county appraisal districts notifying them their property taxes are increasing too.
The local real estate market, which has been hot, combined with new construction to increase commercial building property taxes by 12% over 2014. Overall, property values increased by $197 billion. The largest growth in the overall value is from commercial property which increased in value by 18%, while residential values increased by approximately 9%. This worked out to a combined increase in property values of $22 billion over last year, 20% of which came from new construction.
Unlike homeowners, most of whom will notice the increase when their monthly mortgage payment goes up, commercial property owners will simply receive a bill from the Dallas County Appraisal District, or the appraisal districts from one of our neighbor counties. Property taxes and commercial building insurance is not included in an escrow account with the financing a building owner may have.
Not surprising, many commercial property owners will disagree with the Appraisal District’s rate increase. Dallas County property owners can file a protest online, in writing, or in person. To file an online property tax challenge go to www.dallascad.org. If the appraisal district agrees with you, you’ll receive an email notifying you of that. If they disagree, then you’ll have the option of scheduling a review board hearing. All protests must be filed on or before June 1 of this year.
I also recommend comparing commercial property insurance too. Rates fluctuate on commercial properties from year to year and you may find enough of a savings to help offset the higher tax bill! If you’d like a second opinion, please let me know. Share your comments, questions, and advice you may have for other property owners with us on our Google +, Facebook, or LinkedIn pages. I’d love to hear from you!