DALLAS—According to recent research from RETC, a real estate tax consulting firm based in Dallas, Austin and Houston appraisal districts were much more aggressive than Dallas this year. Based on data from RETC's clients, Houston property taxes increased by more than 11 percent, Austin more than 14 and Dallas only six percent -- all of which came as a surprise since Dallas has lagged in property tax increases the past few years and Dallas property owners were anticipating a big increase in 2014. David Martinez, RETC property tax director, recently spoke with GlobeSt.com's Anna Caplan about his firm's findings.

GlobeSt.com: What did valuations look like in 2014 across the major markets in Texas?

Martinez: Property values increased by nearly 12 percent in all major markets in 2014. The hospitality and multifamily industries saw the largest increases when compared to other industries, due to improving market conditions across the state. The sale transactions in these industries have justified the compression of the cap rates resulting in larger values.

GlobeSt.com: What accounts for the discrepancy among cities in property taxes, at face value?

Martinez: The largest discrepancy in property values from each appraisal district typically depends on the aggressiveness of the appraisal district to gather the necessary information to justify increases in values. Since Texas is a non-disclosure state, it is difficult for the appraisal districts to obtain transactional data. It is also important to note that appraisal districts are often valuing every single type of real estate on top of being understaffed. As a result, the appraiser may not have the technical expertise or current information on hand to make quality valuations, which can also yield discrepancies. This is why it is important for owners to seek help early on from an experienced professional who knows the local rules and regulations and can find these discrepancies.

GlobeSt.com: Why do you think Dallas was anticipating a bump up in tax and it was only at 6 percent?

Martinez: While other major Texas markets, such as Austin and Houston have been drastically increasing property taxes the past few years, Dallas has stayed conservative. This has led us to believe that Dallas will follow suit by increasing valuation numbers as well; however, the increase has yet to be seen. Though the average increase across the board was 6 percent, the Dallas appraisal district has focused its efforts in value increases for both hospitality and multifamily at around a 9 percent increase in 2014. Dallas typically will increase a market segment, depending on the available sales they receive. 

GlobeSt.com: What does this mean for 2015 valuations?              

Martinez: The anticipation from year to year will be that Dallas will eventually increase values as significantly as some of the other appraisal districts [Tarrant (Fort Worth), Travis (Austin), Harris (Houston), etc.].

GlobeSt.com: How can owners ensure their properties are not overvalued?

Martinez: It is important for property owners to review their value notices when they are released in May and understand that they will need to file a protest by the May 31deadline in order to keep their options open. An appeal should be filed if the owner feels that their property value is over-valued when compared to similar properties in their area, or if there have been any market condition changes to their property that justifies a reduction. Most value issues can be resolved informally with the appraisal districts and will not require presenting their valuation case in front of the appraisal review board. 

GlobeSt.com: Are there other cities we haven't talked about, do you think, that will be players at the table in terms of valuation increases in the next few years?

Martinez: With the continued economic growth in the Austin area, Williamson County will continue to see substantial increases with the overflow from Travis County.