05-04-2025
Tarrant County schools, cities urge appraisal district changes, say millions at risk
Tarrant County school districts and city leaders warned lawmakers of the negative effects of property reappraisals not being done annually during a recent subcommittee hearing in Austin.
The comments follow the Tarrant Appraisal District's July 2024 vote to appraise properties every other year rather than annually. The board also approved a 5% 'threshold' on market value increases. The lid on increases could exceed 5% — up to 10% — if the appraisal district shows clear evidence that a home's value is higher.
Rep. Chris Turner, an Grand Prairie Democrat, filed a pair of bills that would reverse the policies. An April 3 hearing drew officials from the the cities of Fort Worth, Arlington and Burleson, and the Arlington, Castleberry, Hurst-Euless-Bedford and Mansfield school districts.
'If property values are not updated consistently — annually — homeowners and businesses in rapidly declining areas may shoulder a disproportionate burden of the tax burden, while others benefit from outdated and below market valuations,' Turner said. 'These uneven practices undermine the principle of uniform and equal taxation, a core requirement of the Texas constitution.'
Turner also cautioned that school districts 'rely on accurate property values to receive proper state funding.'
If an appraisal district undervalues a property, a district could fail the Comptroller's property value study for school funding, Turner said.
'Failing the property value study – the PVS – can have severe consequences,' Turner said. 'The district may lose critical state funding, forcing it to make up a difference through higher local tax rates or cuts to essential services like teacher salaries, classroom resources and facility maintenance.'
The legislation was left pending in the House's subcommittee on Property Tax Appraisals and awaits approval from the full House Ways and Means committee. If advanced, it must pass through the full House and Senate.
Castleberry Superintendent Renee Smith-Faulkner and other school and district officials who attended spoke in support of House Bill 2786, which says appraisals must be done yearly in appraisal districts in counties with 75,000 or more people. North Texas school and city representatives warned of millions in possible financial losses without annual reappraisals.
Section 23.01 of the Texas tax code states that 'all taxable property is appraised at its market value as of January 1.' Elsewhere, the code states that 'market value' means the price the property would sell for 'under prevailing market conditions.'
'This legislation is crucial for ensuring schools do not lose funding that they already rightfully deserve and have already earned through enrollment and weighted funding,' Smith-Faulkner said.
Much of the legislative session so far has focused on education, as separate bills related to funding schools make their way through the Legislature.
'You've devoted much of this session to education generally and school finance specifically, and you're well aware of the school funding issues that districts are dealing with today,' said Justin Chapa, president of the Arlington school board. 'It makes little sense to allow appraisal districts to pass plans that inevitably and in some cases immediately and immensely reduce any funding increases that come from this session.'
Christianne Simmons, the city of Fort Worth's chief transformation officer, said the city is projected to loose $30 million to $40 million in its budget without annual reappraisals.
'It's really, truly difficult to balance the real needs of a growing city when the tax base does not accurately affect market conditions,' Simmons said. 'So that revenue gap will force us to either cut core services or raise the tax rate, and those are really not ideal options for us.'
Ethan Klos with the city of Arlington said its budget could see $9 million to $15 million in cuts if the city didn't raise taxes. He also warned of the negative impact appraisals that aren't done annually could have on businesses.
Tarrant Appraisal District Board Member Fred Campos was the only member of the appraisal board to speak at the hearing. He told lawmakers he supports the bill.
The other bill considered on April 3, House Bill 3235, clarifies existing law to make sure homestead appraisal caps are applied consistently across the state.
According to the bill, appraisal increases are capped at the lesser of a property's market value as of its most recent appraisal, or at 110% of a property's appraised value for the preceding year plus the market value of any new improvements.
The Tarrant Appraisal District's move to lower the 'homestead appraisal cap essentially to 5%' is 'wholly inconsistent with state law and the constitution,' Turner said.
Any change to an appraisal cap falls under the purview of the Texas Legislature not individual appraisal districts, Turner said.
'Allowing appraisal districts to set their own caps creates a patchwork system of property tax laws where homeowners in different parts of the state are subject to different appraisal cap policies' Turner said. 'This undermines the constitutional principle of fairness and equal taxation across the state.'
Most of the North Texas officials did not testify on the second bill, with the exception of representatives from the cities of Fort Worth and Arlington and the Arlington school district. All supported the proposal.
Tarrant County Tax Assessor-Collector Rick Barnes, a voting member on the appraisal board who took office after the July 2024 policy changes were made, did not immediately return a request for comment. Board member Wendy Burgess, who was tax assessor-collector in 2024, also did not immediately return emails seeking comment.
A TAD spokesperson said TAD Executive Director and Chief Appraiser Joe Don Bobbitt was not available for an interview on April 4.
In a letter shared with the committee, Barnes said he opposed Turner's two bills. The legislation would not provide property tax relief and would raises taxes for property owners in Tarrant County, the letter reads.
'The TAD Board has worked diligently in response to Tarrant County taxpayers and their overwhelming request for taxpayer reform,' Barnes said in the note. 'These bills can only increase the burden on taxpayers.'
Barnes said the school funding model is effectively 'a state property tax' and that the county 'will work in any manner allowable by law to offer relief to the taxpayer.'
Turner countered when reading parts of the letter during the committee hearing. The Legislature has worked and is working to provide property tax relief, he said.
It's not the job of appraisal districts, appraisal boards or tax assessor collectors to influence tax rates or tax burden, Turner said.
'I would just remind Mr. Barnes of that,' Turner said.
