Dallas Central Appraisal District reports broad reassessment; homeowners and businesses face phased taxable-value increases

Shane Doherty, executive director of the Dallas Central Appraisal District, told the Dallas County Commissioners Court that the district reappraised a targeted portion of the tax roll for 2025 and notified property owners of significant changes.

Doherty said the district has "approximately 650,000 residential properties" on the roll and that it targeted about 230,000 for reappraisal because their assessment levels were not at market value. He said 547,000 of those 650,000 residential accounts saw either a market-value or taxable-value change, and that the district issued about 773,000 notices this year.

Why it matters: property valuations drive taxable values that local taxing jurisdictions use to set tax rates. Large, countywide reappraisals and chained annual caps mean many owners receive notices of higher taxable values even when market prices are flat.

Doherty and his staff explained the mechanics that will affect owners in coming years. He said about 348,000 homesteaded residential accounts are currently "capped" below market value and that these capped homesteads are recalculated up to 10% a year until they reach market. He also told the court that for non‑homesteaded properties under $5,000,000 a year the law provides a 20% maximum increase in taxable value (a circuit‑breaker calculation) that is phased in until market value is met.

Commercial and construction trends: Doherty said office values are under pressure and likely to be lower when the district certifies the roll on July 25 because of high vacancies and loans coming due in the office market. By contrast he described retail and industrial as generally positive and reported roughly 7,000 new‑construction permits across 31 cities in the county, a 10% increase from the prior year.

Protests and appeals: Doherty said the district had about 206,000 protests in the pipeline as of the prior Friday and projected the total could reach about 220,000. He told the court his staff resolves roughly 60% of protests with adjustments after working with owners or their agents and urged homeowners who receive notices to pursue informal reviews or formal protests.

Preliminary valuation picture: Doherty said the preliminary numbers the district provided taxing jurisdictions on May 13 showed Dallas County market value up about 10.31% and taxable value up about 15.23%. He added the district expects those increases to be smaller at certification — projecting market value up about 5.5% and taxable value up about 8.5% once appeals are resolved.

The district also reported an estimated $35 billion in taxable value currently appraised below market; those differences will be phased up over many years as caps and statutory limits allow.

Discussion, direction, decision: Commissioners asked for clarifications about conversion of commercial space to residential and the degree to which reappraisal notices reflect cap recalculations rather than new market appraisals. Doherty and his staff said the large notice counts were driven in part by cap recalculations and ownership changes and reiterated that property owners have a right to protest. No formal action or vote was taken by the court on appraisal matters during the presentation.

Ending: Doherty closed by encouraging owners to use the protest process if they believe assessed values are incorrect and by noting the district will continue informal settlements where evidence supports adjustments.