Property owners in Galveston County have already saved over $87 million from property tax appeals in 2023.
All real estate and personal property in Galveston County must have market values estimated yearly by the Galveston Central Appraisal District. A property owner has the right to contest those values each year, regardless of whether the value has increased or decreased. O’Connor was able to format this data, which is based on the initial and current tax rolls, thanks to the information provided by the Galveston Central Appraisal District.
Based on an analysis of data regarding property tax savings from recent years as reported on Galveston County Property Tax Trends, O’Connor forecasts that total 2023 property tax savings as a consequence of Galveston County property tax protests will reach around $113 million.
Homeowners have achieved the highest overall saving on property taxes at $41 million through property tax appeals in 2023. According to the Galveston Central Appraisal District, the assessed values of 25,383 homes were reduced during initial tax appeals in 2023. On average, the assessment reduction amounts to $61,022, resulting in an average property tax savings of $1,648. These calculations are based on a tax rate of 2.7% and do not take into account any homestead exemptions.
The tax appeals for apartments that have been resolved thus far in 2023 have resulted in a reduction of the initial value from $2.2 billion to $1.7 billion, thereby decreasing tax assessments by a sum of $507 million. The cumulative property tax savings for apartment owners year-to-date is projected to be approximately $13.6 million, based on a tax rate of 2.7%. On average, tax appeals for apartments in Galveston County led to a reduction of 22.3%, resulting in an estimated savings of $48,068 per apartment tax appeal. These figures account for the outcomes of 285 apartment hearings held in 2023 thus far.
Galveston County commercial property tax appeals saw a sizable decrease in assessment rates, with the reduction rate being 21.9% for land and miscellaneous business properties. A total of 4,118 tax appeals were resolved in 2023, resulting in the initial value of $1.6 billion for Galveston County land property being lowered to $1.3 billion. Hence, owners of these properties are estimated to have saved approximately $9.8 million in taxes, based on a tax rate of 2.7%. This measures to an average savings of $2,396 per tax parcel.
The assessed valuation of hotels appealed in Galveston County was effectively decreased from $379 million to $298 million. Due to this, the tax assessment was reduced by $80 million, resulting in a $2.1 million tax savings at a tax rate of 2.7%. This comprises the outcomes of 56 hotel property tax hearings, which resulted in average savings of $38,737 in property taxes for each hotel when hearings with reductions were concluded in 2023. For appeals with a reduction, the typical drop in percentage for hotel tax and property tax appeals is 21.2% YTD.
Galveston County has already resolved 255 office building tax appeals, saving their owners a combined total of $2.9 million in property taxes. The original $421 million valuation has been decreased to $312 million, resulting in a $109 million tax assessment reduction. Based on a 2.7% tax rate, the average amount saved on property taxes was $11,563. For office property tax appeals that were successfully reduced, the percentage assessment decrease for office properties is 25.9%.
Property owners in Galveston County have finished filing tax objections in 2023, resulting in a reduction for 31,146 properties, bringing the initial assessed value down from $18 billion to $15 billion, or an average drop of 17.42%.
The following apartments will see the highest reduction in their 2023 property tax assessments:
- The proprietor of the Highbridge at Egret Bay apartments, located at 1445 S Egret Bay Blvd in League City, Texas, has successfully diminished their property tax assessment from $54 million to $36 million. This substantial reduction of $18 million results in a corresponding decrease of $5 million in property taxes, considering a tax rate of 2.7%.
- The owner of The Delaney at South Shore apartments will save $4.4 million in 2023 by lowering their initial property tax assessment from $35 million to $18.5 million, resulting in a $16.5 million reduction. This represents a 47% decrease in property taxes for the apartment complex, which was constructed in 2017.
- Owners of the mansions at Moses Lake Senior Community apartments cut their property taxes by $4 million. The initial $30 million 2023 property tax assessment was decreased by $15 million to $15.5 million. This building, which is located at 2211 34th Street N in Texas City, TX 77590, was constructed in 2008.
Galveston Central Appraisal District, which appraises properties in Galveston County, employs more than 50 people. The enormous property tax reduction opportunities accessible through the property tax appeal procedure are illustrated by the aforementioned cases.
Property owners should carefully examine their yearly property tax assessments and file an appeal on a yearly basis. In a typical year, more than 50% of property tax appeals in Galveston County result in success.