Lewisville High School student leadership teacher Bernette Lindamood (above right) and LNR Youth Committee chair Sue Bowman (second from right) last week presented LHS senior Kevin Palmer with the award for Exceptional Student of the Month for May 2023.

Palmer is in Ms. Lindamood's class, which always starts with an active listening exercise. “Kevin just dives in,” she said, adding that his fellow students also have commented on his kindness, artistic ability, and positive attitude when asked to pitch in on projects.

 

The award-winning high schooler was joined at the Lewisville Noon Rotary meeting by his father, mother, and brother for the happy occasion. The club is grateful for exceptional students like Kevin Palmer and wishes him much success in his pursuits after graduation. 

 

The highest median property tax by state is Illinois, but Texas ranks fifth highest at 2.17%, noted Guttery, who is a Clinical Professor of Finance and Managerial Economics at the Naveen Jindal School of Management at the University of Texas at Dallas. Part of the reason is because Texas does not have state income tax. Even so, the bill can be onerous. “My property valuation went up 39 percent from last year,” Guttery said. 

 

Many residents are confused about possible tax exemptions, such as a homestead exemption, agriculture exemption, exemptions for disabled persons and disabled veterans, and the over-65 ceiling, he noted.

 

Seniors actually can take advantage of significant savings, Guttery explained. When the oldest spouse turns 65, the actual dollar amount of tax you pay that year freezes going forward. However, although all school districts in Denton Country freeze the tax, only half of the cities implement the freeze, he noted. To lessen the sting, Denton County does offer a $10,000 exemption (on top of the $40,000 homestead exemption) for those over 65. Disabled persons receive an exemption between $20,000-$100,000, depending on which city they’re in, and disabled veterans can potentially qualify for a 100 percent exemption, if they meet specific criteria. (Click here to see answers to Frequently Asked Questions concerning the Over-65 or Disable Exemptions.)

 

The homestead exemption applies to homeowners of all ages and currently is $40,000 on the school portion only of a resident's overall property tax obligation. However, Denton County also has a homestead exemption equal to the greater of $5,000 or 1% of your home value, and certain cities offer additional exemptions, as well. (Learn more about Residence Homestead Exemptions here.)

 

Those who want to appeal their property tax hike can schedule an in-person informal meeting, file a written protest, or go before the Appraisal Review Board. “You need to find the date of the Notice of Appraised Value you received,” Guttery said, noting homeowners have 30 days to challenge the proposed valuation and property tax obligation. There is a 10% cap on the Assessed Value, regardless of what the Market value shows, he explained. 

 

The best way to challenge the Appraised Value and proposed property taxes is to go on Dentoncad.com and click on Map. Each lot has a six-digit account number. Using the account numbers for reference, you then can look up the lot value per square foot and house value per square foot for homes in your neighborhood—including yours—and see where your total valuation falls in relation to the surrounding homes.

 

“You’ve got to make sure your classification matches up,” Guttery explained. You can then calculate the average lot value and house value per square foot and see how yours compares. You may need to challenge only the house valuation or the lot valuation, based on the results, but the difference can be significant. 

 

“I challenged the land value only,” Guttery said, noting the calculation for his residence was $21.37/square foot, compared to about $11/square foot for the surrounding properties. As part of his approach to gathering evidence, Guttery filed a Freedom of Information Act (FOIA) request with the Central Appraisal District for field cards, which include detailed data for each lot. After presenting his evidence, the valuation for his lot was reduced to just over $12/square foot. He had his total market value reduced by $126,000, including a 5 percent reduction based on the topography of his lot and the 10 percent cap. 

 

Although the steps can sound daunting, the process is relatively straightforward, Guttery said. Figure out your comps, order your field cards through a FOIA request if necessary, document every defect in your home, and do the math, he quipped. Challenging your property taxes can be time consuming, but his system is easy to replicate and the savings can carry over for several years. For more information, Dr. Guttery can be reached by email at guttery@utdallas.edu.