Property taxes rise | Local news

A number of cities, including Killeen, Harker Heights, Nolanville and Temple, have either already increased the tax rate or proposed an increase.

In addition, the Killeen Independent School District has increased its tax rate for the coming year.

The taxable value of Bell County real estate has also increased. The average taxable value of a non-rural home without land has increased from $248,074 in 2023 to $271,027 in 2024, according to figures from Sheri Parker, operations manager for the Bell County Tax Assessment District. This results in homeowners in the area having a significantly higher tax burden.

Although all budgets and tax rates have not yet been finalized, Killeen households are likely to see a tax increase of about 10 cents per $100 of assessed value.

The Killeen Independent School District, the region’s largest tax collector, is raising property taxes from 85.01 cents last year to 87.58 cents per $100 of assessed value this year.

The city of Killeen is also increasing fees from 62.08 cents to 65.73 cents and Bell County is increasing fees from 31.25 cents to 34.45 cents.

Adding those numbers together and including Central Texas College and the two water companies that also collect property taxes in Killeen, the tax rate for property owners in Killeen will increase from about $1.89 per $100 of value to about $1.99 this year.

Looking at the average taxable value of homes in the county, the average Killeen resident would have paid about $4,696 in taxes last year on a home valued at $248,074. This year, they would have an estimated total property tax bill of $5,399, accounting for both the tax increase and the increase in the homes’ assessed taxable value. Overall, that’s an average increase in property taxes for Killeen residents of about $703.

While the tax increase will not be as significant in other parts of the county, almost all parts of the county will see a property tax increase. While select communities, such as the cities of Belton and Copperas Cove, have seen tax cuts, these will likely be offset by the fact that those counties have significantly increased their taxes.

Lisa-Marie McGaughey, owner of MCG Homestead Rentals and Sales, called rising property taxes a “nationwide problem.” She has received reports of property tax increases across the country. The Killeen area is far from the only place seeing a tax increase this year.

This increase in home prices has hampered the local real estate market. McGaughey, who lives in Harker Heights, said, “Right now, home sales are going very slowly.” She pointed out that many homes on the market are currently unsold. In addition, she has observed that creative financing options are becoming more common in home purchases. Of non-standard financing options, she said, “We’re seeing a lot more of those selling.”

In addition to owning her own company, McGaughey is the treasurer of the Apartment Association for Central Texas; prior to her appointment as treasurer, she served as its president from 2019 to 2021.

Margo Wyatt, president of the Temple-Belton Board of Realtors, noted that higher property taxes could hurt the real estate market.

“It will definitely become a barrier to home ownership,” she said.

Wyatt said she had hoped for a reduction in property taxes and praised the few lawmakers who had tried to keep taxes low. The tax increase, she said, “is unfortunate for homeowners.”

Of the eastern part of the county, Wyatt said, “We still have a seller’s market.” However, she noted that housing inventory is increasing, saying, “We’re very close to a balanced market.” Wyatt, who has been a real estate agent since 1998, explained that a balanced market usually means there are enough homes in the area to last five to six months; anything below that is usually considered a seller’s market and anything above that is considered a buyer’s market.

Both McGaughey and Wyatt raised concerns about the assessed value of homes in the area. McGaughey described homes being “way over-assessed,” while Wyatt pointed out that the appraisal district is “very inconsistent.”

When touring homes, agents typically look at other properties within a one-mile radius that are similar in size and age to estimate the home’s value. County appraisal districts don’t always do this.

“It’s just a very complicated process,” Wyatt said. “I think that’s the part that’s not fair.” She said she had appealed the assessed value of her home in the past.

McGaughey echoed that sentiment, pointing out that her home, located in Harker Heights, was compared to homes in Killeen by the county assessor’s office.

“I wouldn’t compare Harker Heights and Killeen,” she said, especially since there are comparable homes closer to Harker Heights.”

McGaughey recommended that people who do not plan to sell their homes any time soon protest their taxes, as most homes in the area are overvalued.

While growth in the housing market may be slowing, the rental market is still showing solid development.

“Rental properties are always moving,” McGaughey said. She described the market as stable.

But prices for those rentals are rising, both brokers say. Wyatt said it’s now more expensive to own a home than to rent, partly because of increased taxes.

Property owners typically pass increased costs on to tenants, and when property taxes go up, McGaughey says, “We have to charge higher rent.”