Dallas County property owners have already saved over $250 million from property tax protests in 2023.
Dallas Central Appraisal District is responsible for estimating the market value of real property and personal property in Dallas County annually. Property owners have the right to contest those values each year, whether the value is raised or not. This data has been compiled by O’Connor based on initial and the current tax rolls provided by Dallas Central Appraisal District.
O’Connor estimates total 2023 property tax savings as a result of Dallas County property tax protests will total about $650 million based on reviewing data for property tax savings from prior years as reported on Dallas County Property Tax Trends.
Homeowners have saved about $25 million already in property tax protests in 2023. Dallas Central Appraisal District shows they have reduced values for 28,840 houses in 2023 tax protests. The average assessment reduction is $31,999 with average property tax savings of $864, based on a 2.7% tax rate and not considering homestead exemptions.
Apartment owners scored the largest total property tax savings and the largest savings per tax protest. Apartment tax protests resolved so far in 2023 have reduced the initial value of $31.3 billion to $27.1 billion, reducing tax assessments by $4.2 billion. The total property tax savings YTD for apartment owners is estimated at $114.4 million, based on a tax rate of 2.7%. Apartment tax protests in Dallas County averaged a reduction of 13.5% and estimated property tax savings per apartment tax protest of $102,905. This includes hearing results for 1,112 apartments already in 2023.
The largest percentage assessment reduction for Dallas County commercial property tax protests is 27.8% for land / miscellaneous, including 4,035 tax protests resolved in 2023. The initial value of $904.4 million was reduced to $653.3 million. The total tax savings for these owners is approximately $6.8 million based on a 2.7% tax rate, or $1,680 per tax parcel.
Hotel owners have successfully reduced the assessed value of hotels protested from $4.296 billion to $3.474 billion. This generated a tax assessment reduction of $822 million with tax savings of $22.2 million based on a 2.7% tax rate. This includes property tax hearing results for 320 hotels with average property tax savings of $69,406 per hotel for hearings completed in 2023 with reductions. The average percentage reduction for hotel tax property tax protests in 19.1% YTD for protests with a reduction.
Office building owners have achieved the second highest aggregate property tax savings totaling $38.93 million for 846 office building tax protests resolved YTD in Dallas County. The initial value of $13.6 billion has been reduced to $12.16 billion, a reduction of tax assessment of $1.44 billion. Property tax savings averaged $46,019 based on a 2.7% tax rate. The percentage assessment reduction for office buildings is 10.6% for office tax protests resolved with a reduction.
Dallas County property owners have completed tax protests in 2023 with a reduction for 38,104 properties, reducing the initial assessed value of $79.6 billion to $70.4 billion, an 11.7% average reduction. The average tax savings per property protested is $6,581 including protests for houses and commercial properties.
Dallas Central Appraisal District has a staff of over 240 professionals who value property in Dallas County. However, the above examples illustrate the large potential for property tax reductions available through the property tax appeal process.
The 2023 property tax assessment reduction is based on comparing the initial values sent by Dallas Central Appraisal District with the most recent tax assessments for 2023. This data does not include properties protested with no reduction, which increases the average reduction. In a typical year, about 15 to 20% of Dallas County tax parcels will be protested, or about 140,000 to 180,000 tax protests out of a total of 840,000 tax parcels.
Property owners are encouraged to scrutinize their annual property tax assessments and appeal annually. Well over half of property tax protests in Dallas County are successful in a typical year.