Brazoria County property owners are flabbergasted and dumbstruck by the 2023 notices of assessed value. Houston metro area sale prices only increased by 1.6% and home sale prices fell 4.2% in Brazoria County from January 2022 to January 2023, but 2023 property tax assessment are up 31.3%. Because the typical Brazoria County home is assessed 18.8% higher than market value, homeowners face property taxes $1,452 higher than if their home was assessed at market value. Property tax assessments for owners of homes and commercial properties are generated by Brazoria County Appraisal District.
Home Price / Assessment Summary
The Brazoria County median home price fell from $292,319 in January 2022 to 280,000 in January 2023, a 4.2% decline based on a study of 6,143 Brazoria County homes conducted by O’Connor. The sales occurred from January 2022 to March 2023. The median time adjusted sales price was $280,000 but the median 2023 property tax assessment from Brazoria County Appraisal District is $333,830. Based on an assessment of $53,830 ($333,830 – $280,000) in excess of market value and a 2.7% tax rate, homeowners will be paying an extra $1,453 in 2023 property taxes. The estimate of an additional $1,453 in property taxes is before property tax protests, homestead exemptions and tax rate compression.
How Can Tax Assessments be Off by 18.8%?
Brazoria County home sale price trends in 2023 included a 15% rise during January 2022 to May followed by a 16% decline from May to January 2023. The median sales prices for key months are summarized below:
|Month||Median Sales Price|
|May 2022||$335,000 – up 15% from January 2022|
|January 2023||$280,000 – down 16% from May 2023|
Effective Date of Tax Assessment is January 1 of Each Year
The effective date for 2023 property taxes is January 1, 2023. Taxes are paid in arrears in Texas, so this assessment is for taxes due in January 2024. There is no ambiguity regarding the effective date. Texas Tax Code 23.01: Except as otherwise provided by this chapter, all taxable property is appraised at its market value as of January 1.
2022 Sales Price Trends Atypical and Do Not Fit Appraisal District Modeling Tools
Never since Texas became a state in 1845 have tax assessments for houses grossly exceeded market value, until 2023. Prior to 1980, each tax entity did their own assessment and values were well below market value. Appraisal districts were created in 1980 and have typically valued houses at 93 to 99% of market value. Excess tax assessments for homes are setting all-time Texas records for excess taxation. Ten of twelve appraisal districts who have released data further analyzed by O’Connor present a stark outlook for 2023 home property taxes. Systemic flaws in valuation methodology led to record extra taxes.
Every homeowner in Brazoria County should protest in 2023. Protesting is the only option to reduce the BCAD tax assessment to market value or lower. O’Connor believes 92% of Brazoria County homes are assessed at more than market value. The protest deadline is May 15th. Homeowners who file a protest can obtain a free hearing evidence package upon request; simply send a note to your appraisal district asking that it be mailed to you.
Brazoria County residential property assessments are up across all value ranges, with the most substantial increases for properties valued $750K to $1M at almost 46%, properties $1M to $1.5M up more than 47%, and properties over $1.5M with shocking increases of over 50%.
Homeowners in Brazoria County properties in the 6,000 to 7,999 sq. ft. range are hit with the highest assessment spike when comparing living area size increases.
Older homes in Brazoria County constructed prior to 1960 are receiving 2023 assessments with increases over 41%.
Commercial Property Assessments in Brazoria County are up Across all Property Types
Brazoria County Appraisal District (BCAD) proposed the highest increases in assessed value with an average increase of 65.5% for apartments, office, warehouse, retail, and hotel. The average increase for commercial is 29.4%, based on a study of 2023 property tax assessments by O’Connor for Brazoria, Bexar, Collin, Fort Bend, Hidalgo, Harris, Lubbock, Nueces, Williamson. Data will be provided for the top 30 counties as is becomes available and is analyzed.
Commercial Property 2023 Assessment % Increase by Property Type by County
Brazoria County not only had the highest overall level of increase for commercial at 65.5%, but its level of increase is also double the average for nine counties. Furthermore, Brazoria County Appraisal District had the highest level of assessment increase for apartments (68.8%), office (43.7%), retail (75.1%), and warehouse (83.7%). Hidalgo County Appraisal District raised hotel property tax assessments by 70.6% but BCAD was second highest with hotel tax assessment increases of 42.7%.
There is a gap of over 80% between the estimated value of Brazoria County commercial property and the property assessments for 2023!
While the Brazoria County Appraisal District assessment increases for commercial properties are mammoth, they are inconsistent with the trends for commercial property values both in Brazoria County, Texas, and the U.S. Commercial real estate values plummeted in 2022 due primarily to large increases is capitalization rates. (Capitalization or cap rate move inversely with value. The higher the cap rate, the lower the value. The rates for 10-year treasuries rose from 1.76% to 3.55%. Cap rates increase when 10-year-treasuries increase.)
The volume of commercial real estate sales is off by 70 to 80% due to a chasm between the price buyers will pay and amount sellers will accept. Few commercial properties are selling other than distressed properties where the seller has no alternative.
Other factors affecting commercial property rates are higher insurance (especially in coastal areas), higher property taxes and generally higher costs due to inflation.
It is impossible to reconcile the massive increases in commercial property tax assessments in Brazoria County with the macroeconomic trends reducing real estate values.
Commercial property assessment values in Brazoria County are up over 100% for property built between 1961 and 1980.
Owners of Brazoria County commercial property of all value ranges are stunned with the increase in taxable value for 2023, but those with property valued between $1M and $5M, and those with property over $5M face the most extreme hikes of 67.7% and 66.1%, respectively.
Brazoria County owners of apartments built before 1960 are likely appalled to see assessed value increases of well over 200% or more than triple the previous values!
There is little humor in seeing that Brazoria County property owners of offices constructed between 1981 and 2000 received the most favorable assessments which ONLY increased by 32%.
Retail commercial owners in Brazoria County with property built between 1961 and 1980 are not amused to see assessed value increases over 137%.
Increased assessed value for commercial warehouse properties in Brazoria County are comically high for all ranges of years built, with the lowest at over 70% for properties constructed before 1960.
Brazoria County medical office assessed values went up by 30.3%, while regular office property rose by 47.2%.
Retail property assessments for 2023 are the most pronounced for Brazoria County neighborhood shopping centers with values up over 107%!
The protest deadline is May 15, 2023. Protest now to be certain you don’t miss the deadline. There are three steps to the appeal process: informal, formal or appraisal review board, and judicial. O’Connor expects record reduction in Brazoria County tax assessments for 2023.
If you are a property owner in Brazoria County and your assessment has increased, you do not have to accept the new appraisal value, it is your right to appeal. Don’t pay more than your fair share. Record levels of property tax protest are expected to follow. The deadline to file a property tax protest is May 15th.
O’Connor is among the largest property tax consulting firms in the United States, providing residential property tax reduction services in Texas, Illinois, and Georgia, as well as commercial property tax reduction services across the United States. O’Connor’s team of professionals possess the resources and market expertise in the areas of property tax, cost segregation, commercial and residential real estate appraisals. The firm was founded in 1974 and employs more than 600 professionals worldwide. O’Connor’s core focus is enriching the lives of property owners through cost effective tax reduction.
Property owners interested in assistance appealing their assessment can enroll in O’Connor’s Property Tax Protection Program ™ . There is no upfront fee, or any fee unless we reduce your property taxes, and easy online enrollment only takes 2 to 3 minutes.