Great question. The property tax assessment is based on the value as of January 1 of the current year. Last year appraisal districts gave no consideration to the impact of COVID since it was not impacting value as of January 1, 2020.

With limited exemptions, commercial properties were lower as of January 1, 2021 (versus 2020):

  • Record or near record levels of COVID infections, deaths and hospitalization as of January 1, 2021.
  • Office occupancy and rental were lower, and occupancy rates are expected to fall further during 2021 as companies reduce space due to hybrid work format,
  • Current and projected retail real estate demand is lower due to the accelerated migration of sales from brick and mortar to online, Apartment occupancy is lower due to tenants buying houses.
  • Apartment collections are lower due to tenants not paying rent. CNBC reports 18% of tenants nationwide are delinquent on apartment rent with an average balance of $5,600.
  • Land values are off due to sharply reduced purchased of land for new construction.

Your final 2021 property tax assessment should be lower than the 2020 assessment. If you missed the May 17th protest deadline, you likely still qualify for property tax relief based on the “substantial error” section of Tax Code (25.25 (d)).

Call us at 713-375-4399 for questions about your 2021 protest or filing a “substantial error” protest.

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