All About Property Taxes

A friend was looking for some information regarding property taxes, so I've put this together for her and for everyone who might have questions.

A lot of people have their taxes paid with their mortgage company through an escrow account, so many times, homeowners just see one large tax amount per year.  What is important to understand, however, is that there are multiple entities that are imposing property taxes on your home.  I think a great way to show that is through the chart on the right which I took from the Ellis County Appraisal District's website here: https://www.elliscad.com/ .   You can click "Online Services" and then select "Property Search".  Once you type in your property, there is a drop down box at the top right with the year.  I selected "2021" because neither appraisals nor tax rates have been set by the taxing entities, so if you leave it on "2022", you'll just see a bunch of zeroes and "N/A".  While that would be great, it isn't accurate, so I wanted to give you a head's up on that.  :)  The chart shows that on my particular house, living in the city limits of Waxahachie (vs the ETJ or outside city limits), my family pays 4 different taxes on our home.

-- The amount of taxes you pay = Tax Rate X Taxable Value of Home* / 100  --

*The taxable value of your home is the appraisal minus the amount of any exemptions you may have, such as a homestead exemption.  If you haven't filed for a homestead exemption and qualify to do so, you can access the form here: blob:https://www.elliscad.com/77e84b87-5174-4b2d-9c5d-2cf973e9cbc3  If you'd like to view other forms available from ECAD this link will take you there: https://www.elliscad.com/forms

 

For the most part, we have the power to elect those in the positions to set our tax rates.  For example, the Ellis County tax rate is set by Ellis County Commissioners who are nominated by primary elections (3/1/22 for this year) and then are elected in the General Election held in November each year.  The WISD tax rate is set by the school board members who are elected in May (5/7/22 this year).  The City of Waxahachie tax rate is set by the City Council who are elected in May as well (5/7/22 this year).    

 

These same taxing entities are also the ones who nominate the individuals who serve on the Ellis County Appraisal District's Board of Directors.  The Ellis County Board of Directors select and hire the Chief Appraiser, adopt the annual district budget, appoint the appraisal review board, appoint a property owner liaison officer and ensure the district follows policies and procedures required by law.

It has never been more important to get out and vote!

Now that we know who sets the tax rates, there are a few things I'd like to point out.

1) In my experience, there have been many elected officials who like to say that the taxes are going up due to the appraisals.  This is not exactly accurate.  The reason for that is because elected officials and their staff know what the expected appraisals will be BEFORE they vote and set a tax rate. They receive what is called a "certified appraisal roll".  When appraisals are going up (which is a great thing, right?!) tax rates should be lowered just to equal the same tax revenue as the previous year.  There's actually a name for that rate and it must be calculated every year.  It's called the "No-New-Revenue Rate" (NNR for short).  If a taxing entity votes to set a rate higher than the NNR, then they will be bringing in more tax revenue than the previous year and you will most likely be paying more in taxes.

2) Another popular phrase that I've heard elected officials say is "We didn't raise your taxes.  We voted to keep the rate the same."  Again, this is not always accurate.  As stated above, if appraisals are going up, but you keep the tax rate the same, then that will equal an increase on the amount of taxes that you pay, so the elected officials actually did raise your tax burden.

3) Something else I've heard pretty often, in Waxahachie at least, is "The city doesn't make up the bulk of your tax bill.  The school district does."  This IS an accurate statement; however, it is IRRELEVANT.  It is irrelevant because each taxing entity, whether school district, county or city, each sets their own tax rate independent of what any other taxing entity is doing.  

So what can you do about your property taxes?

1) First and foremost - VOTE!  It usually takes no longer than 5 minutes at the Elections office or other polling location and you can have a say in who your elected officials are that set the various tax rates. the Ellis County Elections office has a webpage full of information about upcoming elections and where to vote.  You can access that here:  http://www.co.ellis.tx.us/629/Upcoming-Elections  If you aren't sure whether or not you are registered to vote, the Texas Secretary of State's website has a great resource here: https://teamrv-mvp.sos.texas.gov/MVP/mvp.do

2) Attend public hearings and speak about the tax rate - whether in support or opposition.  Taxing entities are mandated by law to hold public hearings to allow for public participation.  That being said, those public hearings are done at the very end of the process (around August/September or so).  Being involved in your county, school district and city earlier in the year and sharing your input at that time, can really help make a difference because things can change at that time.  City staff, for example, begin working on the budget early in the year and will present it to Council usually at a retreat in the Spring - some time around March. Being at that retreat is a great way to hear what is being considered.  Because so many individuals work during the time that these early budget meetings are held, advocate with your local entity that all meetings and work sessions be live-streamed so that you can tune in when you have a chance.  While you may not have the opportunity to address Council directly at the retreat, you can absolutely do so during the next Council meeting at the Public Comments portion at the beginning of the meeting.

3) Be in touch with your elected officials and establish a relationship with them.  Let them know what you want and feel free to ask questions.  We're there to serve you!  For Ellis County, you can reach elected officials here: http://www.co.ellis.tx.us/770/Elected-Officials  For WISD, here is their contact page: https://www.wisd.org/apps/pages/BoardMembers  For the Waxahachie City Council, you can contact all of us here: https://www.waxahachie.com/government/city_council/index.php

 

I hope that this has been a useful resource and as always, please feel free to contact me if you have any questions!

 

Your Friendly Councilmember,

 

Melissa Olson, CMO

(text) 817-507-5162

molson@waxahachie.com