Based on the latest data from September 2023, property in Galveston County has successfully accumulated nearly $84 million in savings as a result of resolving property tax disagreements. This substantial sum exemplifies the advantages experienced by individuals who opted to contest their property assessment for 2023.
Galveston County property owners have the legal right to challenge the assessment values set by the county. Every year, Galveston Central Appraisal District provides market values for real estate and business personal property to the residents of Galveston County, regardless of whether the values have increased or decreased. O’Connor collected this data based on the original and current tax records provided by Galveston Central Appraisal District.
O’Connor previously projected that the owners would conserve a total of $113 million in property taxes for 2023 due to the Galveston County property tax protests. This prediction was based on the data available in Galveston County Property Tax Trends, which showcases the outcomes from the previous years. However, it is now evident that the amount of money saved on property taxes for Galveston County has not yet exceed the initial expectations.
The biggest overall savings as of September 2023, totaling $41.8 million, were realized by Galveston County residents who own residential property after examining the updated savings from property tax appeals. The Galveston Central Appraisal District has responded to tax objections by reducing valuations for a total of 25,414 properties. These assessment reductions, totaling $61,062, will result in a total property tax savings of $1,649, assuming a tax rate of 2.7% without factoring in homestead exemptions.
Based on the latest data from September 2023, apartment complex proprietors in Galveston County started with an initial appraised value of $2.2 billion. These complexes saw their worth decline to $1.7 billion following the resolution of challenges related to their assessment. As a result, tax assessments have decreased by $509 million. Taking into account an estimated tax rate of 2.7%, apartment owners in Galveston County can expect to save a total of $13.7 million in property taxes. With 284 apartment complex property owners having successfully appealed, the revised average for Galveston County indicates a 22.4% decrease in final valuations. This reduction translates to approximately $48,429 in property tax savings per settled apartment property in 2023.
In Galveston County 4,116 hearings comprise the land/other property type that have been resolved for 2023, with the initial value currently being reduced from $671 million to $442 million. With this reduction, it is now the commercial property type with the largest percent reduction for 2023 at 34.2%. These commercial property owners have saved $6.1 million in taxes when taking a 2.7% tax rate into account. This works out to $1,505 for each tax parcel.
The completed 2023 hotel property tax savings include 56 hotels with an average final property tax savings of $38,737 per hotel for hearings that ended in 2023 and led to reductions. The current noticed value is $298 million with an initial value of $379 million and a subsequent decline of $80 million. Hotel properties will enjoy the sixth-highest average percentage decrease in property tax protests for the tax year with reductions, at 21.2%.
Appeals for commercial office spaces in Galveston County have led to substantial savings in property taxes. In the year 2023, a total of 255 appeals were completed, resulting in a combined savings of $2.9 million. The assessed value of office properties has also been adjusted, decreasing from $421 million to $312 million for the 2023 tax year. This reduction of $109 million translates to a 25.9% decrease in property taxes. Considering the tax rate of 2.7%, this reduction equates to an average savings of $11,563 per account.
Using the most recent figures as of September 2023, property owners in Galveston County have successfully finished filing their tax appeals for the calendar year 2023. The assessed value of 31,175 properties has decreased from $17.6 billion to $14.5 billion as a result. This amounts to a loss of 17.65% on average. Averaging both residential and commercial buildings, property owners who decided to contest their taxes were able to save an average of $134,353 per property.
The top three apartments for 2023 property tax assessment reductions are as follows:
- The owner of The Highbridge at Egret Bay, a 254-unit apartment complex in League City, Texas, reduced their property tax assessment from $54.8 million to $36 million, a saving of $18.5 million or 33%. This property tax assessment reduction reduces the owner’s property taxes by $502, 019 when calculated using a 2.7% tax rate.
- Owner of the Delaney at South Shore apartment complex’s original property tax assessment dropped from $35 million to $18.5 million, a decrease of $16.5 million. In 2023, they will save $447,471 as a consequence of the decrease. A 47% reduction in property taxes was given to this apartment building.
- The owner of the apartments at the Mansions at Moses Lake Senior Community witnessed a $15 million decrease in their first property tax assessment, which went from $30.6 million to $15.5 million. They will benefit from the cut in 2023 by saving $406,361. With 3 floors and 240 units, this apartment complex was constructed in 2009.
The Galveston Central Appraisal District, which employs just 50 people, is in charge of compiling property valuations for the entirety of Galveston County. These examples show how taking part in the property tax process can be advantageous and lead to property owners obtaining savings. All Texas property owners, whether they own a home or a business, are eligible to participate in this opportunity, and there are no requirements regarding the minimum property valuation.
The data for the study is obtained by comparing the initial appraisal values for the 2023 tax year in Galveston County with the amended tax assessments in Galveston County. This report does not include properties that were appealed but did not receive a decrease.
