Property appraisals play a large role in Fort Worth’s budget process

Published on August 14, 2022

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Why do property values matter: The bulk of the City’s General Fund comes from property tax revenue. Property taxes are based on appraisals of the homes we live in and businesses operate from.

What’s the benefit to taxpayers? Higher property values not only produce additional revenue, those values typically mean the council will consider lowering the tax rate to keep property tax bills in check. State law caps property value increases at 10% annually.

What’s next: The mayor and council take into account property appraisal values as it works through the proposed FY23 budget. The council votes on the budget and tax rate in September.

Property taxes generate the highest percentage of revenue, about 30%, to the City of Fort Worth’s General Fund-the portion of the city’s budget that covers police and fire services, community services and other city operations.

Fort Worth is a prosperous city and continues to grow. It is not only one of the fastest growing cities in the Metroplex, but also the country. As a result, Fort Worth typically sees an annual rise in property values, some years better than others.

The total appraised value of Fort Worth property increased 10.9% when compared to 2021, bringing the 2022 total to $133.4 billion. The current market values were released in July. In the previous fiscal year, total appraised value rose 6.5% from 2020 to fiscal 2021. Fort Worth properties in Denton, Parker and Wise counties are also included in the total. The central appraisal districts in each county assess real and personal property values.

In Tarrant County, Fort Worth added $12.5 billion in appraised value in 2022, increasing the market value of homes and commercial properties to $125.6 billion, an increase of 11%.

Taxing units, such as Fort Worth, set their own tax rate, which is multiplied on each $100 of assessed valuation. Depending on the approved tax rate, the city could realize approximately $531.5 million in property tax revenue to spend on employee salaries, services and operating libraries, parks and community centers.

When exemptions and other allowed discounts are applied, Fort Worth will base its tax revenues on a net taxable value for fiscal 2023 that is just under $100.1 billion. In fiscal 2022, the net taxable value was $87.37 billion.

Learn more about the City of Fort Worth budget.



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