This week the Tarrant Appraisal District mailed annual property value notices to Tarrant County homeowners. The notices also include estimated amounts for your 2019 property taxes. Please note that the estimated tax can change, as local taxing entities adopt their annual property tax rate in August or September. Annual property tax bills will be mailed in October.
After property values increased in 2017, the North Richland Hills City Council reduced the city’s property tax rate from 61-cents to 59-cents per $100 property value. In 2018, the City Council reduced the rate another half cent to 58.5 cents per $100 property value. By lowering the property tax rate, the City Council saved North Richland Hills property owners $1.8 million in taxes over the last two years. In addition, the city offers many exemptions to lower appraised values. More information about these exemptions can be found below.
The City Council will hold budget work sessions and public hearings on the annual budget and tax rate in August before adopting a tax rate in September for the 2019-2020 fiscal year.
Understanding Your Property Value Notice
Terminology related to property appraisals and property taxes can be confusing. Following is a list of terms used on your property value notice and their meanings.
Market Value: This is the amount the Tarrant County Appraisal District believes your home is currently worth and would sell for if you put it on the market. Because of competition and high demand for housing in DFW, the market value of many homes has increase around 50% over the past 5 years. However, your home’s appraised value and taxable value have not increased at the same rate.
Appraised Value: Per state law, the appraised value of a homestead may increase no more than 10% per year. The appraised value is the value of your home after state-mandated limitations on value increases for residential homesteads is factored in.
Exemptions: Property tax exemptions are offered by the city and other taxing entities to lower your homestead’s appraised value and the amount you are taxed. The City of North Richland Hills provides:
- a 15% homestead exemption;
- a $36,000 exemption for senior citizens (65 and older) and disabled residents;
- a senior and disabled tax ceiling (also known as tax freeze).
26% of homes in North Richland Hills have a senior or disabled tax ceiling. While senior and disabled residents may see their property values increase, their tax bill will not increase above the amount they paid in the year that they qualified for the tax ceiling unless they buy a new home or add to on to their home.
If you have moved to a new home or turned 65 in the past year be sure to submit an application to the Tarrant Appraisal District for your homestead or senior exemption. You will only need to apply once. After the exemption is in place, if you remain in the same home, it will carry forward each year. Exemptions are listed at the bottom of your property value notice. If you have questions about your exemptions, please contact the Tarrant Appraisal District at 817-284-0024.
Taxable Value: The Taxable Value is the Appraised Value minus your Exemptions. The tax rate is applied to this value to determine your tax bill. For an example of this calculation, see our online property tax calculator.
Protests and Appraisal Review Board (ARB): Residents who feel their property appraisal is too high may appeal or protest the value with the Tarrant Appraisal Review Board. The protest deadline for residential properties is Wednesday, May 15. Instructions regarding how to file a protest are found on the back of your property value notice. If you have questions, please contact the Tarrant Appraisal District at 817-284-0024.
How are Property Values Set?
Property values are set by the Tarrant Appraisal District (TAD) and may decrease, increase or remain the same from year to year. Property values are based on a number of factors including current housing market conditions. Overall, existing property values decreased from 2009 to 2011. It was not until 2014 that they returned to pre-recession levels. There was essentially no increase in existing home values in 2015. While overall property values have increased each year since 2016, it is important to note that the taxable value has not increased as much as the market value due to state mandated limitations on value increases for residential homesteads and the exemptions offered by the city.
More information about how the Tarrant Appraisal District determines property values can be found on their website at https://www.tad.org/resources/helpful-videos/.
How are Property Tax Rates Set?
A resident's overall property tax bill includes taxes assessed by the city, school district, county, county hospital district and county college district. Each jurisdiction sets their tax rate annually, in conjunction with the adoption of their annual budget. Public notices and public hearings are required before each tax rate is adopted.
More than half of your total property tax bill is paid to the school district, with about 22% going to the city.
How are Your City Property Taxes Spent?
Your city property taxes fund the services and infrastructure you depend on every day, such as good roads and the police, fire and emergency medical services that respond in a crisis and keep our community safe. These funds also provide for innovative library programs that encourage life-long learning, as well as superior park and recreation amenities that promote active lifestyles and provide beautiful green space for recreation and play. In 2018, the average NRH homeowner paid $1,076 in property taxes to the city. The following chart shows how the tax payment was distributed to provide city services.
| City Service | 2018 Annual | Monthly | Percent |
|---|
Public Safety | $ 539.38 | $44.95 | 50.13% |
Public Works (Streets) | $ 227.75 | $18.98 | 21.17% |
City Facilities | $ 151.07 | $12.59 | 14.04% |
Library | $ 55.08 | $ 4.59 | 5.12% |
Neighborhood Services | $ 46.20 | $ 3.85 | 4.29% |
Parks | $ 43.08 | $ 3.59 | 4.00% |
General Government* | $ 13.44 | $ 1.12 | 1.25% |
Total | $1,076.00 | $89.67 | 100.00% |
* General Government includes financial management, information technology, planning, communications and other administrative services.
Property taxes make up about 36% of the city's General Fund revenue, with sales tax contributing about 22%. Franchise fees, permits, fines, charges for service, grants and other sources also help fund the city's daily operations.
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