Certified property values in Dallas have increased by $16.9 billion year to date compared to the same period in 2023, and much of that is attributed to reappraisals.
“Of the $16.9 billion increase in total value, $5.1 billion is from new construction,” City of Dallas CFO Jack Ireland wrote in a memo.
“Therefore, of the 8.5% growth in total value, 2.5% is from new construction and 6.0% is from reappraisals,” he added.
In July, certified values in Dallas, Rockwall, Denton, and Collin counties totaled $215.1 billion, up from $198.2 billion a year ago. In Dallas alone, certified property values increased from $188.6 billion in July 2023 to $204.9 billion this year — an 8.6% increase. The planned 2024-2025 budget is $4.5 billion.
“We are now working with Dallas County Tax Office to calculate the no-new-revenue tax rate and voter-approval tax rate, which are both based on the certified values,” according to Ireland. “Additionally, we are reviewing the property value detail and State law requirements related to the property tax rate. As a reminder, our revenue increase from reappraisal will be capped at 3.5% regardless of growth in value because of State law.”
Gov. Greg Abbott signed SB 2 into law in June 2019, lowering the rollback rate to 3.5% for municipalities and counties. An increase to the rollback rate for those political subdivisions and some special districts requires voter approval and automatically triggers a tax ratification election, or TRE (voter-approval tax rate).
“Truth-in-taxation requires most taxing units to calculate two rates after receiving a certified appraisal roll from the chief appraiser — the no-new-revenue tax rate and the voter-approval tax rate,” according to the Texas comptroller’s office.
“The type of taxing unit determines which truth-in-taxation steps apply. Cities, counties, and hospital districts may levy a sales tax specifically to reduce property taxes. These taxing units reduce the no-new-revenue tax rate in the first year only and voter-approval tax rates every year thereafter to account for the property tax reduction paid for by the expected sales tax revenue.”
The current property tax rate is $0.7357 per $100 valuation, generating about $1 billion of the $4.6 billion fiscal year 2023-2024 budget.
“We will use the certified property values to finalize our property tax rate recommendation and finalize the City Manager’s FY 2024-25 proposed budget and FY 2025-26 planned budget,” Ireland stated in the memo.
“As a reminder, City Manager (I) Kimberly Bizor Tolbert is scheduled to meet with each [council member] one-on-one beginning on August 5 to provide … an overview of the recommended budget,” Ireland added.
A council budget workshop is scheduled for August 13.
