property tax basics

Appraisal Districts are tasked with mass appraising all the property in the county. They do this by building models and then applying the data they see in the market to your property. As a whole it’s not a bad system but it’s not always perfect. 

January 1st is the assessment date for values and records. The districts determine the value as of this date as well as the ownership.

Appraisal notices are then mailed out to homeowners with a lot of information and usually several different values. 

Your MARKET value is the value the Appraisal District thinks your property would sell for. 

Your TAXABLE value (sometimes called cap value, appraised, assessed) is the value your taxes are based on. 

Sometimes these numbers can be the same, sometimes they are different. If the property has a Homestead exemption than the taxable value is limited to a 10% increase every year (unless you remodel or add on to your property). This means that though you are not paying taxes on the full amount of the market value, your taxable value will continue to jump 10% every year until it reaches the market value.

The appraisal records are then turned over to the Appraisal Review Board (ARB) in the spring where a protest period begins. This is when homeowners and agents can protest their valuations, ownership, exemptions or any other aspects of the appraisal roll that they disagree with. 

Your protest has to be filed before the deadline (usually 30 days from the postmark date on your appraisal notice). You should provide evidence to support your case, photos of the condition of your home, estimates for repairs, and comparable sales from your neighborhood.

Your property will be scheduled for a hearing with the ARB board (usually 3 members), most are done over the phone now for convenience but if you would like you can request an in person hearing.

Before your hearing you can talk to an appraiser (informal discussion) to see if they will lower your value to an acceptable value. 

The ARB members are separate from the Appraisal District, they are citizens who may or may not have any real estate experience. They usually have little to no training and are tasked with being the judge and jury over any property protest filed.  These hearings are hit or miss for homeowners some have great experiences, some not so great.

If after your ARB hearing you are still dissatisfied with your value you have the option to file for binding arbitration or sue in district court. Both are highly specialized cases that our company has significant experience in. 

After the protest period (in the fall) your local governments determine their budgets, set their tax rates and send you a bill. These tax bills are due upon receipt, but do not become delinquent until February 1st.   

If your property value is left unchecked you can see large increases 10%-20% or even more EVERY YEAR!

Let us make it simple, hire us and we take care of the rest. We will update you with our results and how much you saved in taxes from after we protest your property taxes.