Texas Central Appraisal Districts Follow Minimum Standards Set By Texas Comptroller

Texas central appraisal districts operate based on minimum standards for administration and operation of an appraisal district. This statute seems to guarantee these minimum standards. However, appraisal districts are run by chief appraisers who rule with scarcely any oversight, other than the appraisal district board of directors.

Section 5.03 – Powers and Duties Generally

Determining who is responsible for the amount of property taxes paid and the administration of the process is difficult. The process includes the Texas Comptroller, appraisal district staff, chief appraiser, appraisal district review board of directors, appraisal district review board and tax entities. When Texas property owners express dismay about rising property taxes, elected officials are likely to say “We didn’t raise your property taxes, the appraisal district increased your assessed value.” The appraisal district staff reports to the chief appraiser, who is selected by the appraisal review board of directors, who are elected by the tax entities, which are run by the politicians. Each party in the circle can pass responsibility to another party.

The Texas Comptroller further confuses assignment of responsibility. The comptroller is responsible for establishing minimum standards for the administration and operation of an appraisal district. However, the comptroller has limited options for enforcing these minimum standards.

The Texas Comptroller also performs an annual ratio study to each appraisal district to determine whether properties are assessed at market value. Texas law requires appraisal districts to achieve a median level of assessment of 95 – 105% for the properties within each school district. School districts can lose a portion of property taxes they collect if the median level of appraisal within the school district falls below 95%. The comptroller’s ratio study has been cited as a key factor causing aggressive increases in property tax assessed values.

While the Texas Comptroller can force local appraisal districts to institute substantial increases in assessed value, they have no effective option to require appraisal districts or appraisal review boards to follow the law.

Sec. 5.03. Powers and Duties Generally

(a) The comptroller shall adopt rules establishing minimum standards for the administration and operation of an appraisal district. The minimum standards may vary according to the number of parcels and the kinds of property the district is responsible for appraising.

(b) The comptroller may require from each district engaged in appraising property for taxation an annual report on a form prescribed by the comptroller on the administration and operation of the appraisal office.

(c) The comptroller may contract with consultants to assist in performance of the duties imposed by this chapter.

(d) Notwithstanding any other provision of this title, the comptroller may, after providing notice, require a document, payment, notice, report, or other item required to be submitted to the comptroller under this title to be submitted electronically and may send a document, payment, notice, report or other item the comptroller is required to send under this title electronically. The comptroller may adopt rules to administer this subsection, including rules specifying the format of an item electronically submitted to or sent by the comptroller.

Acts 1979, 66th Leg., p. 2221, ch. 841, Sec. 1, eff. Jan. 1, 1980. Amended by Acts 1981, 67th Leg., 1st C.S., p. 118, ch. 13, Sec. 6, eff. Aug. 14, 1981; Acts 1991, 72nd Leg., 2nd C.S., ch. 6, Sec. 2, eff. Sept. 1, 1991.

Amended by:

Acts 2021, 87th Leg., R.S., Ch. 282 (H.B. 3786), Sec. 1, eff. September 1, 2021.

Acts 2021, 87th Leg., R.S., Ch. 533 (S.B. 63), Sec. 1, eff. September 1, 2021.

Cross References:
Comptroller shall prescribe and furnish forms, see Sec. 5.07.
Comptroller annual report, see Sec. 5.09(a).

Notes:
The board lacks authority to make rules clarifying the procedure for electing the appraisal district board of directors. Op. Tex. Att’y Gen. No. MW-126 (1980).
These codes affect property owners across the state, in both larger and smaller cities including:

• Carrollton
• East Columbia
• Edgecliff
• Copper Canyon
• Onion Creek
• Bacliff
• Tiki Island
• Kennedale
• Lochridge
• Alamo Heights
• Corral City
• Bee Cave
• Liverpool
• Lakeway
• Oak Grove
• Pleasant Run
• Old Ocean
• Seabrook
• Sweeny
• Patton Village

The Texas Property Tax Code applies to all property types in Texas including:

• Research and development
• Department store
• Cold storage facility
• Health spa
• Self-storage
• Auto salvage yard
• Bowling alley
• Mobile home park
• Used car lot
• Tennis club

O’Connor & Associates offers property tax services to all property owners of all land uses across Texas.

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