Home values in Bastrop County rose by 16 percent on average for 2017, over 2 percent more than last year’s increase, according to the central appraisal district.

Taxable values for Bastrop County total $6.3 billion this year. Property values increased by 14.98 percent in the Bastrop school district, 19.44 percent in the Elgin school district and 14.92 percent in the Smithville school district.

The increase was influenced by the state comptroller’s determination that property valuations in Bastrop County were too low for 2016, as well as overspill from the Austin housing market.

"The appraisal district has its back to the wall in setting the values," Interim Chief Appraiser Richard Petree said. "All of the larger schools in the county failed the property value study in 2016 and failure of the property value study in 2017 would mean a loss of state funding for the local schools."

State law requires that the district appraise properties at 95 percent of market value or else the appraisal district fails the comptroller’s ratio study and the state reduces funding to local schools. The state comptroller’s ratio study compares sales prices with appraised values set by the county appraisal district.

Bastrop, Elgin and Smithville were determined to be under the 95 percent threshold in 2016, with Bastrop property valuations set at 90 percent, Smithville at 93 percent and Elgin at 93.7 percent.

The Bastrop County appraisal district is challenging the state figure in an appeal process expected to last through spring. If the county’s appeal is not successful, the Smithville school district could lose about $600,000 in state funding, officials have said.

Bastrop and Elgin school districts will not be immediately impacted financially, as a one-year grace period is given to districts to get back in compliance with the 95-percent threshold. However, Smithville was not in compliance in 2014, so if the county’s appraisal district loses its appeal, the school district will lose out on some state funding this year.

In 2016, home values rose by 13.7 percent in Bastrop County, doubling the previous year’s increase. In 2015, home values increased by 6.8 percent.

The average market value for homes in Bastrop County rose to $163,071 in 2016, up from $143,393 in 2015.

The appraisal district sent out notices this week to individual taxpayers whose property value has increased this year.

"When a taxpayer receives their notice of value, the first question they should ask themselves is, ‘Could I sell my home for this amount?’ If the answer is ‘yes,’ then the appraisal district has done their job. If the answer is ‘no,’ then the taxpayer should file a protest with the appraisal district," Petree said.

Property owners who challenge appraisals will have an opportunity to discuss the value of their home with a district staff member and negotiate the valuation based on comparable sales in the neighborhood, closing statements, damage to the property, cost estimates to fix problems or cost of construction, officials said.

Though the appraisal district expects a large number of protests this year due to the large increases, it plans to work with all taxpayers to ensure that they get information they need and schedule a hearing if they wish to have one, officials said.

To protest 2017 appraisals, homeowners may file one online at www.bastropcad.org or fill out the protest form on the back of the home value notice.