Most property owners believe appraisal districts should cut taxable values in 2021. 93% of Texas property owners surveyed by O’Connor thought appraisal districts should reduce values in 2021 due to the impact of COVID.
Hidalgo Appraisal District raised the overall taxable value of commercial properties by 10.5%, for the 36,641 commercial properties with 2021 values available. The 2021 increase in Hidalgo Appraisal District taxable values is summarized below:
Taxable values were increased for 1,541 of 3,715 office buildings. The total assessed value increased to $25.09 billion in 2021 from $23.41 billion in 2020. The increases are surprising considering the impact of COVID on office occupancy.
Land values soared 4.1%. The taxable value of vacant land rose from $17.04 billion last year to $17.89 billion in 2021. More than 24.4% of land owners saw higher taxable value; land assessments were increased for 488 of 1,988 tracts of land with 2021 values available. Demand for land for develop fell in 2020 due to uncertainty caused by COVID.
Increases in retail properties were the biggest surprise. Scores of national retailers have filed for bankruptcy. Thousands of local tenants have abandoned leases due to COVID. Yet the taxable value of retail properties were increased for 1,241 of 2,752 retail properties with new values available. The total taxable value rose to $25.02 billion from $23.02 billion in 2020.
Warehouse properties saw the largest increase for improved commercial properties in Hidalgo County, with values increasing a whopping 22%. The 2021 taxable value was increased for over half of properties with new values available.; 204 of 362 warehouses were increased. The total taxable value spiked to $1.614 billion from $1.323 billion in 2020.
Taxable values were increased for 858 of 1,411 apartments. The total assessed value increased to $14.03 billion in 2021 from $11.36 billion in 2020. The increases are surprising considering the impact of COVID on apartment occupancy.
Taxable values were increased for 42 of 80 hotels. The total assessed value increased to $1.618 billion in 2021 from $1.210 billion in 2020. The increases are surprising considering the impact of COVID on hotel occupancy.
The property tax protest deadline is May 17th. Hidalgo County commercial property owners are encouraged to appeal regardless of whether their value increased. There is a strong argument commercial values are lower in 2021 compared to a year ago due to COVID. Many if not most commercial properties are expected to have a lower taxable value compared to last year, but ONLY if the 2021 value is appealed.
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