A Texas-Sized Commercial Property Tax Gambit

A pair of articles from the Dallas Morning News examine the inequities of property tax rates in Texas. Under the current system, commercial property owners in Dallas County "shaved more than $4.8 billion off preliminary tax appraisals."

2 minute read

May 6, 2014, 2:00 PM PDT

By James Brasuell @CasualBrasuell


An article by Matthew Watkins explains Texas' property tax system and the imbalanced tax burden it creates for homeowners relative to commercial property owners.

"The Texas Constitution provides two ways for property owners to make their case [in reducing their taxable values]. Homeowners usually cite market value, claiming they couldn’t sell their houses for the amount the appraisal district claims they are worth."

Commercial property owners, however, "usually prefer another tactic, Nolan said. They argue that they aren’t being taxed 'equally and uniformly.' That essentially means a property owner thinks his peers — the owners of other multimillion-dollar buildings — got valuations much lower than his. If so, that’s a violation of the owner’s rights under the state constitution."

Since that system was enacted in 1998, challenges to appraisals of commercial property value in Texas have skyrocketed. In 2013, in Dallas County alone, commercial property owners reduced their initial appraised value by more than $4.8 billion. "That’s more than seven times the reduction secured by residential property owners," explains Watkins.

Resistance to the system is growing, including demonstrations in San Antonio in April and threats of legal action in Harris County, where commissioners "threatened to sue the local appraisal district after a shopping center sold for nearly $200 million more than its appraised value…" Steve Blow followed the article by Watkins with an editorial calling for the state to make the property tax appraisal system fair for all Texans. He cites the work of advocacy group Real Values for Texas in achieving that goal. Blow's case: "If we must pay taxes, we at least want them to be fair. And in Texas, that’s less and less the case."

Saturday, April 26, 2014 in Dallas Morning News

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

King County Supportive Housing Program Offers Hope for Unhoused Residents

The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

July 11 - Real Change

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

July 11 - Shelterforce Magazine

Green bike share bikes parked in a row on a commercial street with outdoor dining and greenery.

Making Shared Micromobility More Inclusive

Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.

July 11 - Cities Today