AMARILLO, Texas (KAMR/KCIT) — The Potter-Randall Appraisal District sent out notices of appraisal value for property owners on Friday, April 22, noting a sharp increase on average.

PRAD said property owners in Potter and Randall Counties will see increases of 25% on average to account for the changing market conditions and to reflect value as of January 1, 2022.

“We’re tasked with appraising all the properties in Potter and Randall county, and state law requires us to appraise properties at 100% Market Value. So every year when we do our appraisals, that’s what we’re trying to do is appraise on that market value as of January 1,” said Jeffrey Dagley, PRAD’s chief appraiser. “We’re looking at what the values should be based on what the market is doing and we’re just following what’s actually happening in the market. We’re not determining those values that are out there in the marketplace.”

Dagley said there are several contributing factors for rising home values, including low interest rates, short supply of homes, and record sales in 2020 and 2021.

“If you go out and look at what properties are listed for in your neighborhood, you’ll probably see listings a lot higher than what you’ve ever seen before, if you haven’t looked at it,” said Dagley. “So, it’s probably a good indication that you would be able to sell for a lot more.”

He continued, “Increases in the last couple of years have been unprecedented as far as how much properties are selling for compared to what they were several years ago. That’s all driven by low inventory. Those low interest rates that have been out there, supply as far as your construction materials, the prices have been going up on materials quite a bit. And so that’s all those things are driving up the market quite a bit.”

Dagley said PRAD must follow current sales trends, but they cannot determine what the appraisal value means for property tax bills.

“Right now, our goal is to appraise the properties at market value. Once we do that, we certify our appraisal roll, we send that to the taxing entities,” he said. “Then the taxing entities go through their budget hearings, and they’re setting their budget and then that determines what the tax rate will be and will determine what your actual taxes would be.”

MyHighPlains.com reached out to taxing entities on Monday, including Amarillo ISD, Canyon ISD, and the City of Amarillo.

Amarillo ISD sent the following statement:

“Since 2019, state law for schools has provided for property tax relief through tax rate compression which is a way of limiting the tax burden for property owners. This means that when property values go up, the school district does not benefit because the tax rate is compressed (lowered) since it will take less in taxes to raise the same amount of revenue. Over the past several years, tax compression has resulted in a decrease of more than 10 cents in AISD’s overall tax rate, and the rate will decrease again based on property appraisal growth for 2022.”

The City of Amarillo said no one was available for comment on Monday. As of Monday evening, CISD had not responded to our request.

Dagley noted that property values are not only increasing in Potter and Randall Counties but all through the state.

“If you check the news anywhere throughout the state, you will see the same stories about values going up in Harris County and Houston, Dallas and Austin, and even smaller places like Abilene and Lubbock,” he said. “You’re seeing the same same thing happen all across the state. And if you look at national news, it’s happening all across the nation, that property values have been just really rising in the last couple of years.”

He said anyone with questions about their appraisals can contact their office or even file a protest.

“If they feel like that value is too high, based on what’s actually going on in the market, or their particular property, they can file a protest,” said Dagley. “Once we get through with this whole process, we certify an appraisal roll, then that that sends it on down the road to the taxing entities.”

Dagley also encouraged property owners to look at their exemptions.

“Make sure you have the exemptions that you might qualify for and the biggest one’s your homestead exemption,” he said. “If you have that exemption, then it can limit that increase by only increasing 10% from the previous year.”

He continued, “So you have to have the homestead exemption in 2021 to have that limit come into play in 2022. It’s the second year that the exemption is on the property.”

Dagley also noted there are other exemptions, including for those 65 and older, disabled veterans, and more.