How Do Property Taxes Work in Texas?
A Complete Guide to the Texas Property Tax Process
Property taxes are local taxes that are determined by your local officials. The property tax process starts off with valuing your property, setting your tax rate, and finally collecting your taxes.
However, the entire process is governed by Texas law. In Texas, property taxes are a major source of revenue and play a major part in offering government services when compared to any other source. The property tax collected is used to pay for the roads, streets, schools, police, fire protection, etc.
Property tax standards set by the Texas constitution
The state constitution has set up a few standards for property tax. These include:
Equality & Uniformity:
This property tax standard makes sure that all properties are taxed equally and not even one single property pays more than its share.
Tangible properties to be taxed with a few exceptions at their market value as of January 1st:
The market value refers to the price at which the property would sell for without any pressure on the seller or the buyers’ side with regards to the price. The exceptions refer to parks, agriculture, timber, etc.
All properties are taxable unless federal or state law offers an exemption:
Exemptions to Texas property tax can be applied to part of or all of your property’s value. Most localities require you to apply for an exemption to paying property taxes.
Right to notice:
Property owners have the right to receive a reasonable notice if the appraisal value of the property increases.
Properties in the appraisal district can have only one appraised value:
Your county cannot assign different values to your property. It must use the same value.
An overview of how the Texas property tax system works
There are three major bodies involved in the Texas property tax system:
Appraisal District
Sets up the taxable property every year. The chief appraiser is responsible for its operations. Find out more about your appraisal district.
Appraisal Review Board
Settles disagreements on the value of the property between the taxpayer and the appraisal district.
Local taxing units
Decide how much money to spend every year which in turn is used to determine the tax rate.
What is the Texas property tax process?
- Valuing your property
- Protesting property tax value
- Adopting your local tax rate
- Collecting the taxes
Property tax season and deadlines for Texans
January 1
This is when the property appraisal begins. The tax is determined based on the property’s market conditions as of January 1. Market conditions include:
- Who owns it
- Value
- Qualifications for exemptions
- Person responsible for paying the tax
January to April
The applications are processed by the appraisal district for tax exemptions.
May
The Appraisal Review Board(ARB) starts with hearing protests from the property owners who think their property values are incorrect by May 15. Once the ARB is done with this process, the chief appraiser gives the taxing units a list of properties that are taxable. This is called the appraisal roll.
September or October
The elected officials adopt a tax rate. A single property can be taxed by many taxing units, for example it can be taxed by both the school district and the county as well.
October and November
The tax bills are sent out to the property owners and the tax collection begins. Taxpayers have time to pay their taxes till January 31 of the next year.
February
During this month the penalties start accumulating on the property tax bills that are still outstanding. The taxing units start legal actions if the taxes become delinquent.
Know your rights as a taxpayer in Texas
- The value of your property has to be the same as that of other properties similar to yours except in cases where it qualifies for a special appraisal.
- Any exemptions that you apply and qualify for gives you the right to receive them.
- Right to notice of change. You have this right if there is any change in the property value or in exemptions.
- You can know about a taxing unit’s tax rate increase and comment on it.
Know your options for tax reductions
As a taxpayer, if you feel your property is appraised more than the market value, or if you are not given an exemption, you can protest or you can take the case to the court.
Taxpayers have the right to speak out at public hearings when the elected officials decide on how to spend the taxes.
Along with your fellow taxpayers, you can limit your tax increases in an election.
The responsibilities of a property taxpayer
- Apply for exemptions before the deadline.
- Check if the property is listed right in the appraisal records.
- For business personal properties, make sure you render it every year to the chief appraiser.
- Make sure your taxes are paid on time.
Seeking the help of a property tax consultant
The tax season can be a real burden for owners of residential or commercial property. But O’Connor can help you save on your property taxes this year. We do not bill you for court costs, appraisals, expert witness fees or legal fees. You pay us only if we reduce your taxes! Get in touch with one of our experts and you will know why we should be your first choice.
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