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”.

To employ a system of ad valorem taxation, three basic functions must take place each year. First, a taxable value for the property is determined by the appraisal district. Secondly, local taxing jurisdictions such as cities, schools, counties, and other entities authorize to levy a property and a tax rate to calculate the amount of taxes owed on that property. Third, the assessor/collector must send out a tax bill and collect the tax.

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 properties, also referred to as tax parcels, within its county’s boundaries. Once established, these values are certified to the tax assessor-collector for each taxing jurisdiction in the form of an appraisal roll. At this point the tax 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.