If you are a property owner in Texas, you probably know that property taxes are one of the largest expenses of owning a property. These taxes can sometimes be extremely hard to manage and become a burden. Knowing the basic terms related to Property Taxes can be a beneficial factor.
Property Tax terms you should be familiar with:
Property Tax
Property tax in Texas is a locally assessed and locally administered tax. There is no state property tax. Property taxes help local governments pay for schools, roads, police & firemen, and other services provided by the local government.
Tax Exemption
A tax exemption will reduce the appraised value so that the property tax amount will be lower. There are many different tax exemptions available – partial or total (absolute). A partial exemption removes a percentage or a fixed dollar amount of a property’s value from taxation. A total (absolute) exemption excludes the entire property from taxation.
Tax Deferral
Qualified property owners can receive a tax deferral that enables them to postpone when taxes are owed without levied any delayed penalties. Interest is priced on deferred taxes, and both the interest and accrued taxes need to be paid within 180 days of the end of the deferral.
Appraisal Value:
An appraised value is an estimate/valuing of a property and determining its market value.
Market Value
A value that a property will be sold as per the current market in a given time frame.
Notice of Appraised Value
A document sent to property owners by Appraisal Districts to inform the property’s taxable and appraised value of both the preceding and current year. The document describes estimated taxes, available exemptions, instructions on protesting the appraisal.
Appraisal District
Appraisal District sets the value of properties within the country. For the appraisal process and protesting the appraisal, you can go to the appraisal district. They also take care of other things such as car registration and car titles.
Appraisal Review Board (ARB)
The Appraisal Review Board is a board of local citizens chosen by the county’s local legislative district judge. The ARB hears protests between property owners and the appraisal district about property values and taxability.
Local Taxing Units
The regional taxing units estimate your property tax rates. These include counties, cities, junior colleges, school districts, and distinctive purpose districts. You can reach your local taxing unit(s) to answer questions about tax bills and tax rates.
Property Tax Cycle
Four main phases occur in the Texas property tax system, including the property tax cycle. These phases are
- appraisal
- equalization
- assessment
- collection.
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