HOW IS YOUR PROPERTY APPRAISED?
PROPERTY TAX ADMINISTRATION In Texas, property owners pay property taxes based on the market value of their property. This is sometimes referred to as “ad valorem” taxation, meaning "according to value". In order to employ a system of ad valorem taxation, two basic functions must take place. First, a taxable value for the property is determined each year. Secondly, local taxing jurisdictions such as cities, schools, counties, and other entities authorized to levy a property tax need to apply a tax rate to that value in order to calculate the amount of taxes owed for that year on that property. In 1979, the Texas legislature created appraisal districts in each county. One of the primary roles of appraisal districts is to annually determine the market value of all of the properties, also referred to as tax parcels, within its county’s boundaries. Once established these values are certified to the assessor/collector for each taxing jurisdiction in the form of an appraisal roll. At this point the assessor/collector submits the rolls to the governing body for each taxing jurisdiction as the tax roll. The taxing jurisdictions then use these appraisal rolls to calculate the tax bills to be sent to property owners. Calendar of Events The property tax system in Texas works from a calendar of events. An example of the Texas Property Tax Calendar can be found at: http://www.window.state.tx.us/taxinfo/proptax/taxcalendar/index.html
APPRAISAL DISTRICTS Appraisal districts are administered by a chief appraiser who, assisted by his staff, oversees the dayto-day operations of the district. The function of the appraisal district is to appraise properties and administer exemptions. More information regarding appraisal districts can be found at: http://www.window.state.tx.us/taxinfo/proptax/appd.html Value Appraisal districts follow the provisions of the Texas Property Tax Code. The Tax Code requires that, unless otherwise provided, that all taxable property be appraised at its market value as of January 1st of that tax year. The Tax Code defines “market value” as: “The price at which a property would transfer for cash or its equivalent under prevailing market conditions if: (A) exposed for sale in the open market with a reasonable time for the seller to find a purchaser; (B) both the seller and the purchaser know of all the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions on its use; and (C) both the
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