Betty J.

First of all, remember that the district is only going to consider market values and not the assessed or appraised value. They can't by state law. Yes, the 14% is probabally correct for market values. The homestead cap protects you by state law. If you purchased a home for 200k one year and then others in the same neighborhood purchased homes with the same characteristics decided they were to pay 300k the next year...the district has to assume that the value will be higher due to sales in your area. The homestead cap would only give you a 10% jump from one year to the next. So, even if the true market transactions show this increase to happen, the homestead protects you for your taxable, or appraised value.

Remember that you can protest, but use the IFile when you receive your noticed value two weeks prior to your informal hearing. Use the ISettle program as well. This is the third largest appraisal district in the United States. They are the first to have this program to use to your advantage. You don't have to protest yearly unless you have serious conditions to your home that prevent the market value to be overstated...like foundation issues, roof caving in, or things like that.

There is a cap on annual increases in appraisal value, isn't there? I thought I heard something in the 10% range.

I just bought the property last year so all the past tax info is pulled from HCAD:

In 2002, the appraised value was increased by 2.83%.

2003, 9.98%

2004, 2.38%

2005, 0%

2006, 10%

2007, 13.48% <<

We are currently awaiting approval of our homestead exemption. Could this be why they can increase our total value by over 10%?

Also the letter from HCAD states that "the more active areas of the county have increased as much as 14.5% over last year." Isn't this statement counter to the cap?

What am I missing? Should I protest this? The difference between 10% and 13.48% is about $9k that I will end up being taxed on.

Anyone know the address for this thing?