The impact on Texas commercial properties and their budgets.
The midterm elections were decided last night, and for the first time in recent memory there were as many eyes on Texas from outside the state as from within. In the weeks leading up to the election, the highly-publicized senate race between Beto O’Rourke and Ted Cruz was discussed more on CNN and late-night talk shows than it was on our local news channels. And yet, there were measures further down the ballot that are likely to have a far greater impact on Texas commercial property owners.
Expected increase in tax liability for some DFW property owners.
On local ballots were tax ratification elections for the Dallas Independent School District (DISD) and Richardson ISD. Both measures passed, with each getting an additional 13₵ per $100 in taxable value added to their rate. These higher rates apply to the 2018 tax year, meaning the increased liability will be felt immediately with taxes due Jan. 31, 2019.
According to the Dallas County Tax Office:
Tax bills mailed throughout October assumed this increased tax rate; therefore, what you owe is the amount stated on the bill and owners will not be receiving a supplemental bill with additional taxes due.
NOTE: A spot check by Pinnacle staff reflected this to be accurate.
Do your 2019 budgets account for the increase?
In addition to a higher tax liability this year, it’s important to verify your 2019 budgets account for this increased rate. Any 2019 forecasts prepared by your budgeting or acquisitions personnel, based upon a seller’s proforma, or provided by your tax consultant should be reviewed to ensure they accounted for the passage of these tax ratifications.
Equal & Uniform prevails.
In other Texas Property Tax election news, the Equal & Uniform provision of the tax code withstood a major contest as incumbent Dan Patrick defeated challenger Mike Collier for Lieutenant Governor. Mr. Collier’s top stated priority was to “close a big corporate property tax loophole, known as the Equal and Uniform Loophole” which he incorrectly billed as “enforcing the Texas Constitution.”