Property Taxes in Texas – Who Does What ?
In Texas, the property tax system has several components. We’ll begin with a look at the local level :
- Taxing Units. such as school districts and municipal utility districts [MUD's], set budgets and property tax rates.
- The Central Appraisal District [CAD] appraises the value of your property each year.
- An Appraisal Review Board [ARB] is board of local citizens, appointed by the central appraisal district’s board of directors, to settle disagreements between property owners and the appraisal district about the value of property for purposes of taxation.
- The County Tax Assessor-Collector is contracted by local taxing entities as the official to collect all property taxes due in that county. The assessor-collector then transfers the appropriate amounts to each taxing entity.
So then, what is the state’s role ?
- The Texas State Legislature has authorized local governments to collect the property tax. The state does not set the tax rates, collect the taxes or settle disputes between taxpayers
and local governments .
- The Texas State Comptroller has a role in property taxation that is primarily limited to advisory and monitoring services provided by the comptroller’s Property Tax Division [PTD]. Most importantly, the PTD performs a yearly Property Value Study [PVS] for each school district in the state, to gauge if their appraisal districts are appraising property at market value and thus ensure appropriate school funding. This comptroller’s study, however, does not directly affect local values or tax collections.
As always comments are welcomed and encouraged …
Real Estate Property Tax Consultant
Member of the Texas Association of Property Tax Professionals
POWELL Property Tax Consulting provides residential real estate value appeals in the Houston Texas area — professional representation at Harris County [HCAD] and Montgomery County [MCAD] appraisal district tax protest hearings. Please visit POWELL-PropertyTax.com . There are NO up-front costs. If we succeed in reducing property taxes, clients pay half the savings for the protested year only. There is no risk … PAY US NOTHING unless your taxes are reduced !