Tax office reports on property valuations

Local governments this month are diligently working on their budgets and tax rates for the next fiscal year, and public notices of those proposed rates and budget hearings will soon be appearing in your local newspaper.

Many calculations go into this financial crunch time, but one of the most important figures for any entity at this time is its property appraisal value.

Paula Lowrie, Chief Appraiser of the Donley Appraisal District, says market values for property across the county have generally risen, but there are other forces that may drive taxable values down even when market values go up.

The Clarendon Consolidated Independent School District, for instance has a market value of nearly $424 million on properties within its boundaries in Donley County. However, agriculture exemptions and homestead exemptions lower the actual taxable value of that property to $127,131,281 for this coming year. That’s down from $147,805,132.

The projected $20.67 million loss in value comes, Lowrie said, from the expected passage by Texas voters of an increase in the homestead exemption from $15,000 to $25,000. That election won’t take place until November 3, but Lowrie said the result is almost certain.

“Whenever we have an exemption or a tax freeze on the ballot, it’s probably going to pass,” she said.

If and when Texas voters approve that increase in exemption for school taxes, Hedley ISD will also lose about $387,061 in taxable value in Donley County.

Once an entity has its taxable value, it can generally figure its tax levy by dividing the number by $100 and multiplying the result by a tax rate ($1.17 in the case of Clarendon ISD, for example). However, those numbers get complicated for Clarendon and Hedley schools, the cities of Clarendon and Hedley, Donley County, and the Clarendon College District where people over the age of 65 and those who are disabled have their taxes frozen at differing levels.

Lowrie reports taxable values for government entities other than the school districts have risen some.

Donley County levies two rates – an ad valorem rate and a special rate. Taxable value for the ad valorem rate is now $228,171,790, which is up about $5.5 million. Values for the County Special Rate are also up about $5.5 million. Again, the appraisal district then has to calculate how much of that property is subject to tax freezes based on age or disability.

Taxable value for the Panhandle Ground Water District is up $3.3 million at $216,318,575. The City of Hedley’s taxable value is up $159,539 at $6,532,249; and the City of Clarendon’s taxable value has risen more than $1.2 million to $60,317,956.

Clarendon College’s taxable values in Donley County are up $3.2 million at $200,823,073; and the Donley County Hospital District’s taxable values are up $3.3 million at $216,318,575.

The City of Howardwick is in a unique position this year. Taxable values are up $290,796 at $14,340,284. However, that city has historically been capped at a 25¢ ad valorem rate as a Type B General Municipality. The presence of one manufacturing company – Rolling Plains Ag Compost – allowed the city last fall to switch its status to a Type A and lift the tax rate cap.

Lowrie said Howardwick now can set a rate as high as 26.88 cents without triggering a rollback election.