Texas Property Tax Basics: August 2022

Glenn Hegar
Texas Comptroller of Public Accounts
Texas
Property Tax
Basics
August 2022
B Texas Property Tax Basics – August 2022
Texas Property Tax
Table of Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Property Tax Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Property Tax Cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Rendering Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Appraisal Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Limitation on Residence Homestead Value Increases . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Notice of Appraised Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Tax Ceiling (Freeze) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Agricultural Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Actions Subject to Protest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Hearing Notification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Protest Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Respect the Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Limited Binding Arbitration for Certain Procedural Requirements . . . . . . . . . . . . . . . . . . . 24
Appealing an ARB Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Determining the Tax Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Calculating Tax Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Election to Approve Tax Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Tax Bills, Receipts and Other Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Tax Payment Deadlines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Payment Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Failure to Pay Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Texas Property Tax Basics – August 2022 i

ii Texas Property Tax Basics – August 2022
Texas Property Tax
Introduction
Texas has no state property tax. Local governments set tax Comptroller’s Property Tax Assistance Division (PTAD) cre-
rates and collect property taxes that are used to provide local ated the summary of property tax rights in Exhibit 2.
services including schools, streets, roads, police, fire protec-
EXHIBIT 2
tion and many other services. Property Taxpayer Bill of Rights
Texas law requires property values used in determining taxes 1. You have the right to equal and uniform taxation.8
to be equal and uniform and establishes the process to be fol- 2. You have the right to ensure that your property is
lowed by local officials in determining property values, set- appraised uniformly with similar property in your county.
ting tax rates and collecting taxes. Exhibit 1 includes some 3. You have the right to have your property appraised according
basic property tax rules set out in the Texas Constitution. to generally accepted appraisal methods and techniques and
other requirements of law.9
EXHIBIT 1 4. You have the right to receive exemptions or other tax
Texas Constitution Basic Property Tax Rules relief for which you qualify and apply timely.10
Taxation must be equal and uniform. 5. You have the right to notice of property value increases,
exemption changes and estimated tax amounts.11
• All property must be taxed equally and uniformly.1
• No single property or type of property should be taxed 6. You have the right to inspect non-confidential information used
more than its fair market value.2 to appraise your property.12
Generally, all property is taxed in proportion to its value. 7. You have the right to protest your property’s value and other
• Unless constitutionally exempt, property must be taxed in appraisal matters to an appraisal review board composed of an
proportion to its value.3 impartial group of citizens in your community.13
• The Texas Constitution provides certain exceptions to 8. You have the right to appeal the appraisal review board’s
market valuation, such as taxation based on productive decision to district court in the county where the property is
capacity for agricultural and timberland.4 located.14
• All exemptions from taxation must be constitutionally
9. You have the right to fair treatment by the appraisal district, the
authorized.5
appraisal review board and the tax assessor-collector.
Taxpayers must be given notice of
10. You have the right to voice your opinions at open public
an estimate of taxes they owe.
meetings about proposed tax rates and to ask questions of the
• Notice must be given of the reasonable estimate of the governing body responsible for setting tax rates.15
taxes that will be imposed on a taxpayer’s property.6
• Notice must be given of intent to consider tax increases.7 11. You have the right to an election to limit a tax increase in
certain circumstances.16
12. You have the right to receive a free copy of the pamphlet
Several types of local governments may tax property. Texas
entitled Property Taxpayer Remedies published by the Texas
counties and local school districts tax all nonexempt property Comptroller of Public Accounts prior to your protest before the
within their jurisdiction. Cities and special purpose districts appraisal review board.17
such as hospitals, junior colleges or water districts, may also
collect certain property taxes.
The Comptroller’s office helps ensure that taxpayers have 8

Tex. Const. art. VIII, §1(a)
the information needed to preserve their rights and pursue 9
Tex. Tax Code Ch. 23 and §23.01(b)
appropriate remedies. In keeping with this commitment, the
10
Tex. Const. art. VIII, §1(b), (1-b); Tex. Tax Code Ch. 11
11
Tex. Const. art. VIII, §21 and Tex. Tax Code §§11.43, 25.19, 25.192
and 25.193
12
Tex. Tax Code §25.195
1
Tex. Const. art VIII, §1(a) 13
Tex. Tax Code §41.41(a)
2
Tex. Const. art VIII, §20 14
Tex. Tax Code §§42.01 and 42.21(a)
3
Tex. Const. art VIII, §1(b) 15
Tex. Educ. Code §44.004, Tex. Gov’t Code Ch. 551 and Tex. Tax Code
4
Tex. Const. art VIII, §1-d-1
§26.06
5
Tex. Const. art VIII, §1(b) 16
Tex. Tax Code §§26.07, 26.075 and 26.08 and Tex. Water Code §49.236
6
Tex. Const. art VIII, §21(c) 17
7
Tex. Const. art VIII, §21(a)
Texas Property Tax Basics – August 2022 1

Property Tax Administration In many counties, taxing units contract with the county tax
assessor-collector to collect property taxes for other taxing
Many parties play a role in administering the property tax units in that county.23 The assessor-collector then transfers
system, including property owners, appraisal districts, ap- the appropriate amounts of the collected levy to each tax-
praisal review boards, local taxing units, tax assessor-collec- ing unit.24 Although some taxing units may contract with an
tors and the Comptroller’s office. appraisal district to collect their taxes, the appraisal district
The property owner, whether residential or business, pays does not levy a property tax. 25
taxes and has a reasonable expectation that the taxing pro- PTAD’s role is primarily limited to monitoring services. At
cess will be fairly administered. The property owner is also least once every two years, PTAD conducts a School District
referred to as the taxpayer. Property Value Study (SDPVS) for each school district for
The appraisal district in each county appraises the value of school funding purposes. The SDPVS is an independent es-
property each year.18 The appraisal district is administered timate mandated by the Texas Legislature of property values
by a chief appraiser hired by the appraisal district board within a school district.26 The Comptroller’s values do not
of directors.19 Local taxing units elect the appraisal district directly affect local values or property taxes, which are de-
board of directors based on the amount of taxes levied in termined locally.
each taxing unit.20 The appraisal district can answer ques- PTAD also performs Methods and Assistance Program
tions about local appraisal processes, exemption administra- (MAP) reviews of all appraisal districts every two years. The
tion, agricultural appraisal and the protest process. reviews address four issues: governance, taxpayer assistance,
The appraisal review board (ARB) is a board of local citi- operating procedures and appraisal standards, procedures
zens that hears disagreements between property owners and and methodologies.27 PTAD reviews approximately half of
the appraisal district about a property’s taxability and value.21 all appraisal districts each year. School districts located in
Members of the ARB are appointed by the local administra- counties that do not receive a MAP review in a year will be
tive district judge in the county in which the appraisal district subject to a SDPVS in that year.
is located.22 General information about the Texas property tax system can
Local taxing units, including school districts, counties, cit- be found on the Comptroller’s website at comptroller.texas.
ies, junior colleges and special purpose districts, decide how gov/taxes/property-tax/ or by calling PTAD’s Information
much money they will need to be able to pay for providing and Customer Service Team at 800-252-9121 (press 2). Legal
public services. Property tax rates are set according to tax- questions should be directed to an attorney.
ing unit budgets. Some taxing units have access to other rev-
enue sources, such as a local sales tax. School districts must Property Tax Cycle
rely on the local property tax in addition to state and federal The Texas property tax system has four main phases or sets
funds. Taxing units can answer questions about tax rates and of functions that occur within certain dates: appraisal, equal-
tax bills. ization, assessment and collection. Exhibit 3 indicates the
dates and activities that typically occur within each phase.
18
Tex. Tax Code §6.01(a) and (b) 23
19
Tex. Tax Code §6.05(c) 24
20
Tex. Tax Code §6.03(d) 25
21
Tex. Tax Code §41.01(a)(1) 26
Tex. Gov’t Code §403.302
22
Tex. Tax Code §6.41(d-1) 27
2 Texas Property Tax Basics – August 2022

EXHIBIT 3 The tax calendar is a schedule of property tax activities with
Tax Calendar Phases either legal deadlines or deadlines based on the occurrence
Appraisal Phase (Jan. 1 through May 15) of other events. If the last day for performing an act falls on
Jan. 1 – April 30 Property is appraised and exemption a Saturday, Sunday or legal holiday, the deadline is the next
applications are processed28 regular business day.40 The Comptroller’s office publishes a
April – May 1 Notices of appraised value are sent29 calendar of specific deadlines established by Texas property
May 15 Appraisal record prepared and submitted to tax laws on its website at comptroller.texas.gov/taxes/
the ARB30 property-tax/calendars/index.php.
Equalization Phase (May 15 through July 25)
During the appraisal phase, property is appraised; determi-
May 15 – July 20 Protests and challenges are heard and
determined31 nations are made on exemption applications; appraisal no-
July 20 Appraisal records are approved32 tices are sent to property owners; and the appraisal records
July 25 Appraisal roll is certified33
are submitted to the ARB. The ARB hears and determines
property owner protests and taxing unit challenges and ap-
Assessment Phase (July 25 through Oct. 1)
proves the appraisal record during the equalization phase.
July 25 Appraisal roll received by taxing units34
The assessment phase begins when the appraisal roll is re-
July 25 – Sept. 30 Tax rates are adopted and taxes are levied
ceived by the taxing units from the chief appraiser. During
(calculated)35
the assessment phase, tax rates are adopted, levies are calcu-
Oct. 1 Tax bills begin to be sent to taxpayers36
lated and tax bills are sent. Taxes are collected and penalties
Collection Phase (Oct. 1 through Jan. 31)
and interest are applied on delinquent taxes during the col-
Oct. 1 – Jan. 31 Current taxes are collected37 lections phase.
Feb. 1 Penalties and interest begin to accrue38
July 1 Additional penalties may be added for legal
costs39
28
Tex. Tax Code §§11.43 and 23.01
29
30
31
32
33
34
35
36
37
38
39
Tex. Tax Code §33.07 40

Exhibit 4 depicts the general cycle of the property tax system including the overlap from one year to the next, indicating activi-
ties performed by appraisal districts, ARBs and tax offices.
EXHIBIT 4
Property Tax System
January 1
Appraisal districts are required
to appraise property at its value
on this date. A lien attaches
to each taxable property to
ensure property tax payment.
January 31 of the next year

October 1 Taxes due to local taxing units
Local taxing units (or (or county tax January 1-April 30
county tax assessor- assessor-collector, if Appraisal districts complete
collector, acting on their acting on their behalf). appraisals and process
behalf) begin sending tax applications for exemptions.
bills to property owners.
February 1 of the next year

Local taxing units begin
charging penalty and interest
for unpaid tax bills.
August-September July 1 of the next year April-May

Local taxing units adopt Local taxing units may Appraisal districts send
tax rates. impose additional penalties notices of appraised value.
for legal costs related to
collecting unpaid taxes.
May-July
ARBs hear protests from
property owners, make
determinations and approve
appraisal records.

Texas Property Tax
Appraisal
Each Texas county is served by an appraisal district that de- personal property.52 Other property owners may choose to
termines the value of all taxable property in the county.41 submit a rendition.
A board of directors appointed by the member taxing units
By rendering property, the property owner ensures the ap-
presides over the appraisal district.42 Generally, a taxing unit
praisal district has the property owner’s correct mailing ad-
that imposes property taxes, such as a county, city or school
dress for tax bills and places the owner’s opinion of the prop-
district, is a member of the appraisal district.43
erty’s value on record with the appraisal district.53 The chief
The appraisal district is a political subdivision and must fol- appraiser must send a Notice of Appraised Value if he or she
low applicable laws, including the Open Meetings Act and places a higher value on the property than the value the prop-
the Public Information Act.44 Meetings are generally open to erty owner lists on the rendition form.54
the public and information generated by the appraisal district
Renditions generally must be filed with the appraisal district
is, in most cases, also available to the public.45
after Jan. 1 and no later than April 15.55 A property owner
The appraisal district board of directors hires a chief ap- may apply in writing for a mandatory extension to May 15.
praiser, approves the appraisal district budget, approves con- The chief appraiser may extend the deadline another 15 days
tracts, sets policy and confirms members of the agricultural beyond May 15 if the property owner can show good cause
advisory board.46 In larger counties, it also names a taxpayer for needing an extension.56
liaison officer (TLO) who works directly under the board of
Other rendition deadlines apply to rendition statements and
directors and fields taxpayer questions.47
property reports for property regulated by the Public Utility
Each year the appraisal district compiles a list of taxable Commission of Texas, the Railroad Commission of Texas,
property in the county.48 The listing for each property must the federal Surface Transportation Board or the Federal En-
contain a property description and the owner’s name and ad- ergy Regulatory Commission.57
dress.49 The appraisal district must repeat its appraisal pro-
Significant penalties are imposed for delinquent or fraudu-
cess for property at least once every three years.50
lent renditions.58 Check with the appraisal district for rendi-
tion forms and more information about rendering business
Rendering Property
personal property.59 If the taxable value of business personal
A rendition is a form that property owners may use to report property is less than $2,500 in any one taxing unit, the prop-
taxable property owned on Jan. 1 to the appraisal district.51 erty is exempt in that taxing unit.60 No special application is
Both real and personal property may be rendered. The rendi- required to receive the under-$2,500 exemption.61
tion identifies, describes and gives the location of the taxable
property. Business owners must report a rendition of their Appraisal district staff may enter and inspect business prem-
ises to determine what taxable personal property is owned and
41
Tex. Tax Code §6.01(a) and (b)
42
43
Tex. Tax Code §22.01(a) and (f)
44
Tex. Tax Code §6.01(c) and Tex. Gov’t Code Chs. 551 and 552 53
45
Tex. Gov’t Code Chs. 551 and 552 54
Tex. Tax Code §25.19(a)(2)
46
Tex. Tax Code §§6.05(c) and (h), 6.06(b), 6.11(a), 6.12(a), 25.01(b) and 55
Tex. Loc. Gov’t Code §252.043(f) 56
Tex. Tax Code §22.23(b)
47
Tex. Tax Code §6.052(a) 57
Tex. Tax Code §22.23(d)
48
49
50
Tex. Tax Code §25.18(b) 60
51
Tex. Tax Code §§22.01 and 22.24 61

its value.62 They must make such inspections during normal • both the seller and the purchaser know of all the uses and
business hours or at a time agreeable to the business owner.63 purposes to which the property is adapted and for which it
is capable of being used and of the enforceable restrictions
Except in certain specific circumstances, renditions and in- on its use; and
come and expense information filed with an appraisal district • both the seller and purchaser seek to maximize their gains
is confidential.64 Confidential information may be disclosed and neither is in a position to take advantage of the exi-
to: gencies of the other.73
• the person who filed the statement or report and their au- Three common approaches that the appraisal district may use
thorized representative;65 in appraising property are the market data (sales) comparison
• the property owner and their authorized representative;66 approach, the income approach and the cost approach.74
• the Comptroller’s office and authorized Comptroller
employees;67 Market Data (Sales) Comparison Approach
• a taxing unit and its legal representative for delinquent tax The market data comparison approach to value is based on
collection purposes;68 sales prices of similar properties. The appraisal district com-
• an agent or employee of a taxing unit responsible for au- pares the property being appraised to similar properties that
diting, monitoring or reviewing the operations of an ap- have recently sold and then adjusts the comparable sold prop-
praisal district;69 erties for the differences between them and the property be-
• the employee or agent of a school district involved in pre- ing appraised. 75
paring a protest of the Comptroller’s school district prop-
erty value study;70 and A sale is not considered comparable unless the sale occurred
• other specified persons. within 24 months of the appraisal date, unless there are too
few comparable sales within that time span to constitute a
Appraisal Methods representative sample.76 For residential property in a county
with a population of more than 150,000, a sale is not consid-
Before appraisals begin, the appraisal district compiles a list ered to be a comparable sale unless the sale occurred within
of taxable property. The list contains a description and the 36 months of the appraisal date, regardless of the number of
name and address of the owner for each property. Appraisal comparable sales within that time span.77
districts determine the value of all taxable property within
the county boundaries and are required to reappraise all Comparable sales must be appropriately time-adjusted78 and
property at least once every three years.71 must be similar in factors such as location, lot size, improve-
ments, age, condition, access, amenities, views, income, oper-
Most taxable property is to be appraised at market value as of ating expenses and occupancy.79 The existence of easements,
Jan. 1.72 Market value is the price at which a property would deed restrictions or other legal burdens affecting a property’s
transfer for cash or its equivalent under prevailing market ability to be sold also must be considered.80
conditions if:
Income Approach
• it is exposed for sale in the open market with a reasonable
The income approach is based on income and expense data
time for the seller to find a purchaser;
and is used to determine the present worth of future benefits.
It seeks to determine what an investor would pay now for
a future revenue stream anticipated to be received from the
62
property.
63
64
65
Tex. Tax Code §22.27(b)(2) 73
Tex. Tax Code §1.04(7)
66
Tex. Tax Code §22.27(b)(2) 74
67
Tex. Tax Code §22.27(b)(3) 75
68
Tex. Tax Code §22.27(b)(7) 76
69
Tex. Tax Code §22.27(b)(8) 77
Tex. Tax Code §23.013(b-1)
70
Tex. Tax Code §22.27(b)(9) 78
Tex. Tax Code §23.013(c)
71
Tex. Tax Code §§25.01, 25.02 and 25.18(b) 79
72

The income approach is most suitable for types of proper- all the properties in each class. Each property is also ap-
ties frequently purchased and held for the purpose of produc- praised based on its individual characteristics.88
ing income, such as apartments, retail properties and office
The market value of a residence homestead must be deter-
buildings.81 A chief appraiser must estimate the property’s
mined solely based on its current use regardless of its highest
gross income potential and operating expenses; estimate
and best use.89 For example, a homestead must be appraised
capitalization rates or rates of discount; and base projections
as such, even if it is located where its highest and best use
of future rent or income potential and expenses on reason-
might be as the site for an office building or a parking lot for
ably clear and appropriate evidence.82 In using the income
a mall. In determining a residence homestead’s market value,
approach, the chief appraiser may not separately appraise or
the chief appraiser must consider the value of other residen-
account for personal property that is already included in the
tial property in the neighborhood, even if the other property:
appraisal of real property.83
• was sold at a foreclosure sale conducted in any of the
Cost Approach
three years preceding the tax year in which the residence
The cost approach is especially useful for appraisal of prop-
is being appraised, if it was comparable at the time of sale
erty types for which sales and income data are scarce, unique
with other residences in the neighborhood; or
properties and new construction.84 The cost approach is based
• has a market value that has declined because of a declin-
on what it would it cost to replace the building (improvement)
ing economy.90
with one of equal utility. A chief appraiser uses cost data ob-
tained from generally accepted sources and makes any ap-
propriate adjustment for physical, functional or economic
Limitation on Residence Homestead
obsolescence.85 Depreciation is applied, and the estimate is Value Increases
added to the land value. Texas law sets a limit on the amount of annual increase to
Mass Appraisal the appraised value of a residence homestead to not exceed
Appraisal districts use a method called mass appraisal to cal- the lesser of:
culate the value of a large number of properties.86 Appraisal • the property’s market value; or
districts must comply with the Uniform Standards of Profes- • the sum of:
sional Appraisal Practice if using mass appraisal and ensure • 10 percent of the property’s appraised value for last year;
that the same appraisal methods and techniques be used in • the property’s appraised value for last year; and
appraising the same or similar kinds of property.87 • the market value of all new improvements to the
In a mass appraisal, the appraisal district classifies proper- property.91
ties according to a variety of factors, such as size, use and A new improvement is an improvement to a residence home-
construction type. Using recent property sales, income and stead made after the most recent appraisal of the property
expense, cost and depreciation data, appraisal districts deter- that increases its market value and was not included in the
mine the value of properties in each class. Appraisal districts appraised value of the property for the preceding tax year.
consider differences such as age, location and use to appraise It does not include repairs to or ordinary maintenance of
an existing structure, the grounds or another feature of the
81
Robert J. Gloudemans, Richard R. Almy, Fundamentals of Mass property.92 A replacement structure for one that was rendered
Appraisal, p. 193 (2011) (IAAO publication); and Joseph K. Eckert, uninhabitable or unusable by a casualty or by wind or water
Ph.D., Robert J. Gloudemans, Richard R. Almy, Property Appraisal and damage is also not considered a new improvement if certain
Assessment Administration, p. 206 (1990) (IAAO publication)
82
circumstances are met.93
83
84
Robert J. Gloudemans, Richard R. Almy, Fundamentals of Mass
Appraisal, p. 193 (2011) (IAAO publication); and Joseph K. Eckert, 88
Ph.D., Robert J. Gloudemans, Richard R. Almy, Property Appraisal and 89
Assessment Administration, p. 206 (1990) (IAAO publication) 90
85
86
Tex. Tax Code §23.23(e)
87
Tex. Tax Code §23.23(f) and (g)

The appraisal limitation only applies to a residence home- exemption or partial exemption that was canceled or
stead.94 It takes effect Jan. 1 of the tax year following the reduced.100
year in which the homeowner qualifies for the homestead
The notice is also required to include the following statement
exemption. It expires on Jan. 1 of the tax year following the
in italic typeface:
year in which the property owners no longer qualify for the
residence homestead exemption.95 The Texas Legislature does not set the amount of
your local taxes. Your property tax burden is decid-
Notice of Appraised Value ed by your locally elected officials, and all inquiries
Texas law requires that a property owner be given notice of a concerning your taxes should be directed to those
revaluation of his or her property and a reasonable estimate officials.101
of the amount of taxes that would be imposed on property if
The notice must provide a detailed explanation of the time
the total amount of property taxes for the subdivision were
and procedure for protesting the value; the date and place the
not increased.96 Chief appraisers are required to deliver a
ARB will hear protests; an explanation of the availability and
clear and understandable written notice to a property owner
purpose of an informal conference with the appraisal office
of the property’s appraised value if:
before a hearing on a protest; and a brief explanation noting
• the property’s appraised value is greater than it was in the that the governing body of each taxing unit decides whether
preceding year; or not taxes on the property will increase and that the ap-
• the property’s appraised value is greater than the value praisal district determines the property’s value.102 The notice
rendered by the property owner; must include certain information based on property type.103
• the property was not on the appraisal roll in the preceding
The notice must also include the following statement:
year; or
• an exemption or partial exemption approved for the prop- Beginning August 7th, visit Texas.gov/PropertyTaxes to
erty in the preceding tax year was canceled or reduced for find a link to your local property tax database on which
the current tax year.97 you can easily access information regarding your prop-
erty taxes, including information regarding the amount
This is done using a form called Notice of Appraised Value
of taxes that each entity that taxes your property will im-
that must be sent by April 1 or as soon thereafter as prac-
pose if the entity adopts its proposed tax rate. Your local
ticable for a residence homestead, or by May 1 or as soon
property tax database will be updated regularly during
thereafter as practicable for any other type property. 98
August and September as local elected officials propose
The notice must contain the following information: and adopt the property tax rates that will determine how
much you pay in property taxes.104
• a list of the taxing units in which the property is taxable;
• the property’s appraised value in the preceding year; Appraisal districts are free to develop their own notice, but it
• the property’s taxable value in the preceding year for each must include all the information required by the Tax Code.105
taxing unit that taxes the property; If the appraisal district board of directors approves, the chief
• the property’s appraised value for the current year; appraiser may dispense with the notice if the increase in the
• the kind and amount of each exemption, if any, approved appraised value is $1,000 or less.106
for the prior and current year;99 and
• if an exemption or partial exemption that was approved
for the preceding year was canceled or reduced for the
current year, the notice must include the amount of the
100
Tex. Tax Code §25.19(b)(4)
94
95
Tex. Tax Code §25.19(b)(6)-(9)
96
Tex. Const. art. VIII §21(c) 103
97
Tex. Tax Code §25.19(a)(1)-(4) 104
Tex. Tax Code §25.19(m)
98
99
Tex. Tax Code §25.19(b)(1)-(4) 106

Exemptions taxes have already paid, the property owner will receive a
refund.112
Texas allows a variety of tax exemptions for property and
property owners that qualify for the exemption. An exemp- Exhibit 5 shows the steps to file a residence homestead ex-
tion removes all or part of the property’s value from taxation, emption application.
which lowers the tax bill. For example, if a home is valued
Once a property owner receives a residence homestead or
at $300,000 and the property owner qualifies for a $40,000
disabled veteran exemption, he or she does not have to apply
residence homestead exemption, he or she pay taxes on the
for it again unless requested by the chief appraiser or unless
home as if it were worth $260,000.
the property owner’s qualifications change:
Partial or total exemptions remove part or all of a proper-
• If a property owner moves to a new home, he or she must
ty’s appraised value used to determine local property taxes.
complete a new application to receive most exemptions
A partial exemption removes a percentage or a fixed dollar
and to transfer any tax ceiling.113
amount of a property’s value from taxation. A total exemp-
• A property owner who becomes disabled may file a new
tion excludes the entire property’s appraised value from taxa-
application the year he or she becomes disabled to receive
tion. The state requires taxing units to provide certain ex-
more exemptions.114
emptions with the option to decide locally on whether to offer
• A property owner may file for the 100 percent or totally
other exemptions. Exemptions discussed in this guide apply
disabled veteran or the surviving spouse exemption in the
to residence homesteads only. Additional exemption infor-
middle of year on a new residence homestead for the re-
mation can be found in the Comptroller’s publication Texas
maining part of the year.115
Property Tax Exemptions.
A chief appraiser may not require a person allowed a 100
Property owners are required to apply for exemptions in most
percent or totally disabled veteran exemption under Tax Code
circumstances.107 The general deadline for filing an exemp-
Section 11.131 to file a new application to determine the per-
tion application is before May 1.108 If a property owner fails
son’s current qualification if the person has a permanent total
to file a required application on time, the property owner
disability as determined by the U.S. Department of Veterans
usually forfeits the right to the exemption unless other ap-
Affairs.116
plication provisions exist in law.109 Certain property owners
may late-file residence homestead exemption applications, as Residence Homestead Exemptions
indicated below: To qualify for residence homestead exemptions, the property
• A property owner may file a residence homestead exemp- owner must own and occupy the home as his or her principal
tion application, including an age 65 or older or disabled residence.117 Residence homestead exemptions may apply to
exemption application, up to two years after the date the the entire tax year or be prorated depending on the type of ex-
taxes on the property become delinquent.110 emption.118 The residence itself can be a house, a condomin-
• A disabled veteran may file a 100 percent or totally dis- ium or a manufactured home, as long as the property owner
abled veteran exemption application or a donated resi- owns the improvement.119 A residence homestead generally
dence homestead of a partially disabled veteran exemp- includes the land, not to exceed 20 acres, so long as the owner
tion application and a property owner may file a disabled of the residence holds an ownership interest in the land upon
veteran exemption application up to five years after the which it sits.120 Generally, a property owner may not receive
date the taxes on the property become delinquent.111
If a late-filed homestead exemption is granted, the property 112

owner will receive a new tax bill with a lower amount. If the 113
Tex. Tax Code §§11.43(a), 11.26 and 11.261
114
Tex. Tax Code §§11.42(c) and 11.43(k)
115
116
Tex. Tax Code §11.43(r)
107
Tex. Tax Code §11.13(j)(1)
108
109
Tex. Tax Code §11.43(e) 119
Tex. Tax Code §§11.13(j)(1) and 11.432
110
Tex. Tax Code §11.431(a) 120
Tex. Tax Code §§11.13(j)(1), 11.432(b) and (c)
111

a residence homestead exemption for more than one property General Residence Homestead
in the same year.121 To qualify for the general residence homestead exemption
the owner must have an ownership interest in the property
An heir property owner not specifically identified as the
and use the property as his or her principal residence. An
property owner in the property records may qualify for a
applicant is required to state that he or she does not claim
residence homestead exemption.122 Heir property is real
an exemption on another residence homestead in or outside
property owned by one or more individuals, where at least
of Texas.131 A person who acquires property after Jan. 1 may
one owner claims the property as a residence homestead, and
receive the residence homestead exemption for the applicable
the property was acquired by will, transfer on death deed, or
portion of the year, he or she owns the property if the previ-
intestacy.123
ous owner did not have a residence homestead exemption for
EXHIBIT 5 that year.132
How to File a Residence
Homestead Exemption Application Texas law requires school districts to offer a $40,000 exemp-
tion on residence homesteads.133 Any taxing unit, including
1. Obtain application form(s) at the local appraisal district office.
a city, county, school district or special purpose district, has
2. Return the form(s) to the appraisal district office after Jan. 1
but no later than April 30 and include other information as the option of deciding locally to offer a separate residence
indicated on the application form.124 homestead exemption of up to 20 percent of a property’s ap-
3. Provide all the information and documentation requested. For praised value, but not less than $5,000.134 For example, if a
example, if a property owner is claiming an age 65 or older or residence homestead is valued at $20,000 and the city of-
disabled exemption, he or she may need to show proof of age
or disability. Remember that making false statements on the
fers a 20 percent exemption from city taxes, the exemption
exemption application is a criminal offense.125 amount is $5,000, the minimum, even though 20 percent of
4. If the chief appraiser mails a written request for more $20,000 is $4,000.
information, the property owner has 30 days from the postmark
date to reply.126 Each taxing unit decides before July 1 whether to offer an op-
5. The chief appraiser must notify a property owner in writing tional exemption and at what percentage.135 This exemption is
within five days if he or she denies or modifies an exemption. added to any other residence homestead exemption for which
This notice must explain how the property owner can protest
the denial or modification before the ARB. Additional notice
a property owner qualifies.136 Counties are also required to
requirements exist before a chief appraiser can cancel an offer a $3,000 exemption if the county collects farm-to-mar-
exemption for an owner who is age 65 or older.127 ket roads or flood control taxes. 137
If a property owner temporarily moves away, he or she can Joint, community or successive owners may not each re-
still receive an exemption as long he or she intends to return ceive the same exemption for the same residence in the same
and does not establish another principal residence.128 Tempo- year.138
rarily generally means an absence of less than two years.129
Persons Age 65 or Older or Disabled
An absence for military service inside or outside the U.S. or
School districts are required to give persons age 65 or older
a stay in a facility providing services related to health, infir-
or disabled an additional $10,000 residence homestead ex-
mity or aging may be longer.130
emption.139 This exemption applies as of Jan. 1 of the year in
which the property owner becomes age 65 or disabled.140 If a
property owner qualifies for both the $10,000 exemption for
121
Tex. Tax Code §11.13(h) 131
Tex. Tax Code §§11.13(j)(1) and 11.43(j)
122
Tex. Tax Code §11.43(o) 132
Tex. Tax Code §11.42(f)
123
Tex. Tax Code §1.04(20) and (21) 133
124
Tex. Tax Code §11.13(n)
125
Tex. Tax Code §11.43(d) and (f) 135
126
127
Tex. Tax Code §§11.43 and 11.45 137
Tex. Const. art. VIII §1-a and Tex. Tax Code §11.13(a)
128
Tex. Tax Code §11.13(l) 138
Tex. Tax Code §11.13(h)
129
Tex. Tax Code §11.13(l)(1) 139
130
Tex. Tax Code §11.13(l)(2) 140

homeowners age 65 or older and the $10,000 exemption for EXHIBIT 6
being a person with disabilities, he or she must choose one or Disabled Veteran Partial Exemption
the other and cannot receive both.141
An Exemption
Any taxing unit, including a city, county, school district or of Up to of For a Disability
the Appraised Rating of at
special purpose district, has the option of deciding locally
Value: Least: But Less Than:
to offer an additional exemption of at least $3,000 for home-
$5,000 10% 30%
owners age 65 or older or disabled.142
$7,500 30% 50%
If a property owner does not claim another residence in the $10,000 50% 70%
same year, he or she will receive the age 65 or older or dis- $12,000 70% and over
abled exemption for the full year.143 If the property owner
claims another residence during the same year, he or she will A disabled veteran is entitled to a $12,000 exemption of the
no longer qualify for the exemption on the first home for the value of a designated property if he or she:
remaining portion of that year.144 Taxing units prorate taxes
based on the number of days from when a property owner no • is age 65 years or older and has a disability of at least 10
longer qualifies for the exemption to the end of the tax year.145 percent;
• is totally blind in one or both eyes; or
An eligible disabled person age 65 or older may receive both • has lost the use of one or more limbs.150
exemptions in the same year, but not from the same taxing
units.146 Contact the appraisal district for more information. If a disabled veteran who is entitled to an exemption dies, the
surviving spouse is entitled to the same exemption as long
Disabled Veteran or Survivor as he or she remains unmarried.151 If the spouse does not
All or part of a disabled veteran’s property, including a survive the veteran, each of the veteran’s surviving children
residence homestead, may be exempt from taxation. A sur- younger than 18 years of age and unmarried is entitled to an
viving spouse or surviving child may also qualify for an exemption on property they own.152
exemption.147
If a member of the U.S. armed services dies while on active
Partial Exemptions duty:
Texas law provides partial exemptions for any property
owned by disabled veterans and their surviving spouses and • any surviving spouse is entitled to an exemption from
children.148 The amount of the exemption is determined ac- taxation of $5,000 of the assessed value of the property
cording to the percentage of service-connected disability as the spouse owns and designates;153 and
shown in Exhibit 6.149 • each of the individual’s surviving children younger than 18
and unmarried is entitled to an exemption to be computed
by dividing $5,000 by the number of eligible children.154
A separate partial exemption is also available for residence

homesteads donated to disabled veterans by charitable orga-
nizations which extends to surviving spouses who have not
remarried.155
The deadline for filing for the partial disabled veteran ex-
141
Tex. Const. art. VIII §1-b(c) emptions is April 30 and applies to all property types. An
142
143
144
Tex. Tax Code §§11.13(h) and 26.10(b) 150
145
146
147
Tex. Tax Code §§11.131, 11.132, 11.133 and 11.22 153
Tex. Tax Code §11.22(d)(1)
148
149

application for a disabled veteran exemption may be filed up The surviving spouse of a first responder who is killed or fa-
to five years after the delinquency date of the taxes on the tally injured in the line of duty is entitled to a total residence
property. A disabled veteran may file a late application for a homestead exemption if the surviving spouse is an eligible
donated residence homestead of a partially disabled veteran survivor as determined by the Texas Employees Retirement
exemption up to five years after the delinquency date and a System under Government Code ter 615 and has not remar-
surviving spouse may file a late application for this exemp- ried since the first responder’s death.163
tion up to two years after the delinquency date of the taxes
If a surviving spouse qualifies for one of these exemptions,
on the property.156
he or she is entitled to an exemption on a property that the
Total Exemptions surviving spouse subsequently qualifies as a residence home-
A disabled veteran who is awarded 100 percent disability stead in the same dollar amount of the tax exemption on the
compensation due to a service-connected disability and a rat- former residence homestead. The chief appraiser of the coun-
ing of 100 percent disabled or of individual unemployability ty in which the former residence was located must provide to
from the U.S. Department of Veterans Affairs is entitled to the surviving spouse a written certificate so that the amount
an exemption of the total appraised value of his or her resi- of the exemption on the subsequent qualified homestead can
dence homestead.157 Veterans who qualify for the exemption be determined.164
after Jan. 1 of a tax year receive an exemption for the appli-
cable portion of that year immediately upon qualifying for Temporary Exemption Property Damaged by
the exemption. If the property no longer qualifies in a year, Disaster
the exemption is removed for that portion of the year.158 Property located in a governor-declared disaster area that is
at least 15 percent damaged by the disaster is eligible for a
The 100 percent disabled veteran exemption extends to a sur- temporary exemption from property taxation.165 The exemp-
viving spouse who was married to a disabled veteran who tion amount is based on a damage assessment rating of the
qualified or would have qualified for this exemption if it had physical damage to the property as determined by the ap-
been in effect at the time of the veteran’s death.159 To be en- praisal district.166
titled to this exemption, the surviving spouse must not have
remarried; the property was the residence homestead of the Additional exemption information can be found in the Comp-
surviving spouse when the veteran died; and the property troller’s publication Texas Property Tax Exemptions.
remains the residence homestead of the surviving spouse.160
Tax Ceiling (Freeze)
A disabled veteran may file a late application for a 100 per-
An age 65 or older or disabled property owner’s residence
cent disabled veteran residence homestead exemption up to
homestead exemption qualifies him or her for a tax ceiling on
five years after the delinquency date and a surviving spouse
the school district taxes; that is, the amount of school district
may file a late application for this exemption up to two years
taxes the property owner pays cannot increase as long as he
after the delinquency date of the taxes on the property.161
or she owns and lives in the home.167 The tax ceiling is set at
Surviving Spouses the amount paid in the year that the property owner qualified
A surviving spouse of a member of the U.S. armed services for the age 65 or older or disabled exemption.168 If the calcu-
killed or fatally injured in the line of duty is allowed a total lated school district taxes in any given year fall below the tax
property tax exemption on his or her residence homestead ceiling, the property owner will pay the lower amount.169 The
if he or she has not remarried since the death of the armed tax ceiling cannot expire if the home is made uninhabitable
services member.162 or if the property owner transfers the interest in the home to
156
157
Tex. Tax Code §11.131(b) 164
Tex. Tax Code §§11.133(c) and 11.134(d)
158
Tex. Tax Code §11.42(e) 165
159
Tex. Tax Code §11.131(c) 166
Tex. Tax Code §11.35(b) and (h)
160
161
162
Tex. Tax Code §11.133(b) 169

a trust and still continues to live in the home as his or her city or junior college, he or she may transfer the former tax
residence homestead.170 ceiling percentage to the new home.180 A property owner may
request a certificate from the appraisal district for the former
A tax ceiling can be raised if a home is improved unless the home to present to the appraisal district for the new home.181
improvements are for normal repairs and maintenance or for
a home built to replace one made uninhabitable and the re- When a homeowner who receives the age 65 or older or dis-
placement structure meets certain criteria.171 For example, abled homeowner exemption and tax ceiling dies, the tax ceil-
if a property owner adds a garage or a room to the existing ing offered by a county, city or junior college district trans-
home, the tax ceiling may be raised to account for the value fers to the surviving spouse, if he or she is disabled or age 55
of the new improvement. or older at the spouse’s death and the residence homestead
was the surviving spouse’s residence on the date of death and
A tax ceiling may also change if the property owner moves remains his or her homestead.182
to another home.172 If a property owner buys another home
in Texas, he or she may transfer the percentage of school tax
Agricultural Appraisal
paid based on the former home’s school tax ceiling to the new
home.173 For example, if the property owner currently has a If land qualifies for agricultural (ag) appraisal, it typically
tax ceiling of $100, but would pay $400 in school district lowers a property’s taxable value. The appraised value of
taxes without the tax ceiling, the percentage of tax paid is qualified ag land is based on the land’s capacity to produce
25 percent. If the taxes on the new home are $1,000, the new ag products, including timber, rather than its market value,
school tax ceiling would be $250, or 25 percent of $1,000. which often is higher.183 This appraisal method usually re-
sults in a lower property value for the land and a reduced
When a property owner who has been receiving the age 65 or property tax bill.
older or disabled homestead exemption and tax ceiling dies,
the tax ceiling transfers to the surviving spouse as long as Two different provisions of the Texas Constitution address
he or she is age 55 or older and the residence homestead was qualifications for ag appraisal. Texas Constitution, Article
his or her homestead on the date of the spouse’s death.174 If VIII, Section 1-d, defining ag use, requires a property owner
the age 65 or older property owner dies in the year of his to show farming or ranching is his or her primary occupa-
or her 65th birthday, but had not applied for the age 65 or tion and source of income. Very few property owners qualify
older exemption, the surviving spouse may qualify for the tax under this provision. Nearly all land receiving ag appraisal
ceiling.175 The tax ceiling remains in effect for as long as the falls under Texas Constitution, Article VIII, Section 1-d-1,
survivor owns and lives in the home.176 If a surviving spouse also known as open-space valuation, as described below.
age 55 or older buys another home, he or she may transfer the Property owners are required to apply for special ag apprais-
percentage of tax paid based on the former home’s tax ceiling al.184 The deadline for filing an application is before May 1,
to the new home.177 but the chief appraiser may generally extend the filing dead-
A county, city or junior college district may freeze or limit a line for good cause.185 If a property owner fails to file a re-
property owner’s taxes by adopting a tax ceiling.178 The ceil- quired application on time, the land is ineligible for special ag
ing goes into effect after the taxing unit adopts the limita- appraisal for that year.186
tion and the property owner qualifies the homestead.179 If a Exhibit 7 shows the steps that can be taken to file an applica-
property owner purchases another home in the same county, tion for ag appraisal.
170
Tex. Tax Code §11.26(f) and (n)
171
Tex. Tax Code §11.26(b) and (o)
172
Tex. Tax Code §11.26(g)
173
Tex. Tax Code §11.26(g) 180
174
Tex. Tax Code §11.26(i) 181
175
Tex. Tax Code §11.26(j) 182
Tex. Tax Code §11.261(i)
176
Tex. Tax Code §11.26(i)(2)(B) 183
177
178
Tex. Const. art. VIII §1-b(h) and Tex. Tax Code §11.261(a) 185
179
Tex. Tax Code §11.261(b) 186

Open-Space Land Appraisal 5. If the chief appraiser requests more information, a property
Typically, to qualify for open-space appraisal, the land owner has 30 days to reply.196 A property owner may ask
must be currently devoted principally to ag use to the de- for more time not to exceed 15 days but must have a good
reason.197 If a property owner does not reply, the application is
gree of intensity generally accepted in the area.187 denied.198
6. If the chief appraiser denies an application for ag appraisal,
Ag use includes, but is not limited to:
he or she must notify the property owner in writing within
five days.199 This notice must explain how the property owner
• cultivating the soil, producing crops for human food, ani- can protest to the ARB and provide a full explanation of the
mal feed or planting seed or for the production of fibers; reasons for the denial.200 This notice must be sent by certified
• floriculture (cultivation and management of ornamental mail.201
and flowering plants), viticulture (cultivation of grapes), 7. Once a property owner receives an ag appraisal, he or she does
not have to apply again in succeeding years unless his or her
and horticulture (cultivation of fruits, vegetables, flowers, qualifications change or ownership changes.202
herbs or other plants);
8. The chief appraiser may request a new application from
• raising or keeping livestock; time to time, to verify that the property still meets the
• raising or keeping exotic animals for the production of qualifications for special ag appraisal.203 Failure to respond to
the chief appraiser’s request may result in a determination
tangible products having a commercial value;
that the property is no longer eligible for ag appraisal, and
• planting cover crops or leaving land idle for participation a notice to the owner of this determination. Before a chief
in a government program or in conjunction with normal appraiser may determine a change of use has occurred for an
existing ag appraisal on property owned by someone age 65
crop or livestock rotation procedure;
years or older, additional written notice procedures must be
EXHIBIT 7 followed.204
How to File an Application for 9. If a property owner becomes the owner of land that was
qualified for special appraisal by the previous owner, the new
Agricultural (Ag) Appraisal
owner must apply in his or her own name. Failure to do so may
1. Obtain an application form at the local appraisal district office.188 result in the land being deemed ineligible for the ag appraisal.
The property owner must notify the appraisal district in writing
2. Complete and return it to the appraisal district office after by April 30 if the land’s eligibility changes.205 Failure to do so
Jan. 1, but no later than April 30.189 Remember that falsifying may result in imposition of a penalty equal to 10 percent of the
statements on the application is a criminal offense.190 difference between taxes imposed under special appraisal and
3. If more time is needed to complete the application form, the the taxes that should have been imposed.206
property owner may submit a written request to the chief
appraiser before the April 30 deadline. The chief appraiser can • producing or harvesting logs and posts for constructing or
grant up to 60 extra days to complete the application if the repairing fences, pens, barns or other ag improvements on
property owner has a good reason for needing extra time.191
adjacent qualified open-space land devoted to a different
4. If a property owner misses the April 30 deadline, he or she may
file a late application any time before the ARB approves the ag use;
appraisal records,192 usually on or about July 20.193 A property • wildlife management; and
owner is to be charged a penalty for late filing equal to 10 • raising or keeping bees for pollination or for the produc-
percent of the tax savings obtained through receiving ag
appraisal for the land.194 After the ARB approves the records, a tion of human food or other commercial products.207
property owner can no longer apply for ag appraisal for that
year.195
196
197
198
187
Tex. Tax Code §23.51(1) 199
188
189
190
Tex. Penal Code §37.10 202
191
192
Tex. Tax Code §23.541(a) 204
193
194
Tex. Tax Code §23.541(b) 206
195
Tex. Tax Code §23.541(a) 207

For land to qualify for open-space (1-d-1) ag use appraisal, Open-Space Land Inside a City or Town
generally it must meet the following eligibility requirements: Generally, open-space land inside a city or town may not
qualify for ag appraisal. 215
1. The property is land which includes all appurtenances
(not improvements).208 Land located within an incorporated city or town must meet
2. The land must be currently devoted principally to ag use the criteria applicable to open-space land and one of the fol-
or to wildlife management to the degree of intensity gen- lowing additional criteria.
erally accepted in the area. 209
3. The land must have been devoted principally to ag use or • The city or town must not provide the land with general
to production of timber or forest products for five of the services comparable to those provided in other parts of
preceding seven years.210 Land used for wildlife manage- the city or town having similar features and population.
ment may qualify if previously designated as open-space • The land must have been devoted principally to ag use
or timberland except as provided.211 continuously for the preceding five years.
• The land has been devoted principally to ag use or to the
The property owner must file an application on the proper production of timber or forest products continuously for
form with the information necessary for the appraisal district the preceding five years and the land is used for wildlife
to determine the validity of the claim.212 management.216
The eligibility of open-space land does not end during tem- Change of Land Use
porary cessation of ag use, if certain criteria is met, under the If the land has qualified for ag appraisal and the property
following circumstances. owner changes the land’s use to a non-ag purpose, he or she
will owe a rollback tax for each of the previous three years
• A drought declared by the governor creates an ag neces-
in which the land received the lower appraisal.217 Land quali-
sity to extend the normal time the land remains out of ag
fied for ag appraisal under Texas Constitution, Article VIII,
production.
Section 1-d, will incur interest in addition to the rollback
• The owner is deployed or stationed outside of this state as
tax.218
a member of the U.S. armed services.
• The land is appraised primarily based on the production The rollback tax is the difference between the taxes paid
of citrus and is in a pest management zone and under a based on the land’s open-space value and the taxes that would
certain agreement to destroy, remove or treat all the citrus have been paid if the land had been taxed based on its market
trees on the land that are or could become infested with value (which typically is much higher).219 Exceptions to the
pests.213 rollback tax for change of use may include the following if
they meet certain criteria:
The eligibility of open-space land does not end when a les-
see begins conducting oil and gas operations if the portion of • a sale for right-of-way;220
land on which oil and gas operations are not being conducted • a condemnation;221
otherwise continues to qualify.214 • land transferred to a state, political subdivision or qualified
nonprofit corporation to be used for a public purpose;222
• land transferred from a state, political subdivision or qual-
ified nonprofit corporation to an individual or entity for
purposes of economic development;223
215
216
208
Tex. Tax Code §23.51(1) 217
209
Tex. Tax Code §23.51(1) 218
210
Tex. Tax Code §23.51(1) 219
211
Tex. Tax Code §23.51(1) and (7) 220
212
Tex. Tax Code §23.54(a) and (b) 221
213
Tex. Tax Code §§23.522, 23.523 and 23.525 222
214

• timberland;224
• cemeteries;225
• religious organizations;226
• certain charitable organizations;227 and
• schools.228
The chief appraiser determines whether change of use has

occurred and must send the property owner a notice of
the change by certified mail.229 Additional notice require-
ments exist if the property owner is age 65 years or older.230
For more information about the special appraisal of ag land,

including timberland and land used for wildlife management,
please consult the following appraisal manuals published by
the Comptroller’s office:
• Manual for the Appraisal of Agricultural Land;

• Manual for the Appraisal of Timberland; and
• Guidelines for Qualification of Agricultural Land in
Wildlife Management Use.
The Texas Parks and Wildlife Department publishes

Comprehensive Wildlife Management Planning
Guidelines for each ecoregion.
224
225
Tex. Tax Code §23.55(j)
226
Tex. Tax Code §23.55(l)
227
Tex. Tax Code §23.55(o) and (p)
228
Tex. Tax Code §23.55(q)
229
Tex. Tax Code §§1.07(d) and 23.55(e)
230

Texas Property Tax
Equalization
The Comptroller’s office may not advise a property owner, ARB hearings are open to the public;242 however, a closed
a property owner’s agent or an appraisal district on a matter hearing is allowed on the joint motion of the property owner
that the Comptroller’s office knows is the subject of a protest and chief appraiser if either intends to disclose proprietary or
to the ARB.231 confidential information at the hearing.243 The ARB must de-
velop and adopt hearing procedures and post the procedures
A property owner may present objections about the prop- in a prominent place in the room in which hearings are held
erty’s value, exemptions and special appraisal in a hear- as well as on the appraisal district’s website.244 The chief ap-
ing to an ARB.232 The ARB is an impartial panel of fellow praiser must publicize annually the right to and methods for
citizens authorized to resolve certain disputes between the protests before the ARB, in a manner designed to effectively
property owner and the appraisal district.233 After listening notify all appraisal district residents.245
to the property owner and the chief appraiser, the ARB will
make a written determination on the issues heard during the The usual deadline for filing protests is May 15 or 30 days af-
hearing.234 ter the date the notice of appraised value is delivered, which-
ever is later.246 The filing deadline is postponed until the next
The local administrative judge appoints the ARB members.235 business day if the deadline falls on a Saturday, Sunday or
These members must be residents of the appraisal district for legal state or national holiday.247 The usual deadline may be
at least two years to serve.236 Current officers and employees postponed under certain circumstances.248 Exhibit 8 gives
of the appraisal district, taxing units and the Comptroller’s the steps for filing a protest.
office may not serve.237 In counties with populations of more
than 120,000, former directors, officers and employees of the The ARB generally begins hearing protests from property
appraisal district cannot serve on an ARB.238 Other specific owners after May 15 and must complete most of the hearings
Tax Code restrictions apply. by July 20.249 This deadline may be extended to a later date
in some larger counties.250 When the ARB finishes its work,
ARB members must comply with special state laws on the appraisal district gives each taxing unit a list of taxable
conflict of interest;239 must complete training courses and property, called a certified appraisal roll.251
receive certificates of course completion from the Comp-
troller’s office;240 and must complete a statement indicating Appraisal districts must offer to meet with the property own-
agreement to comply with Tax Code requirements during er at an informal conference to discuss the protest to try to
hearings.241 resolve any concerns. A property owner may request an in-
formal conference with the appraisal district on their notice
of protest form or prior to their scheduled ARB hearing.252
231
Tex. Tax Code §5.041(f) 242
232
Tex. Tax Code §41.66(d-1)
233
234
Tex. Tax Code §§41.41(b) and 41.70
235
Tex. Tax Code §6.41(d-1) 246
236
237
238
239
Tex. Tax Code §§6.412, 6.413 and 41.69 250
240
Tex. Tax Code §5.041(b) and (e-2) 251
241
Tex. Tax Code §5.041(b-1) and (e-2) 252

EXHIBIT 8 • file a notice of protest electronically with the ARB for a
How to File a Protest value or unequal appraisal protest;264
1. A property owner must file the protest in writing.253 The • receive and review comparable sales data and other evi-
appraisal district has protest forms available, but a property dence that the chief appraiser intends to use at the protest
owner is not required to use one. A notice of protest must
hearing electronically;265
identify the owner and the subject property and indicate that
the property owner is dissatisfied with a decision made by the • receive, as applicable, an electronic settlement offer
appraisal district.254 from the appraisal district to correct the appraisal re-
2. A property owner must file the notice of protest before May cords by changing the market value and, if applicable, the
15 or no later than 30 days after the date the appraisal district appraised value of the property, or a notice from the
mailed the notice of appraised value, whichever is later.255 A
property owner working offshore on a drilling or production appraisal district that a settlement offer will not be made
facility or on a boat256 or a property owner on full-time active to the property owner;266 and
duty outside the United States 257 may be entitled to file a late • accept or reject a settlement offer electronically.267
protest.
3. If the chief appraiser sends a property owner a notice that This service is not required for properties in areas where the
the land is no longer in ag use, the property owner must file a
chief appraiser determines that factors affecting market value
protest within 30 days of the date the chief appraiser mailed
the notice.258 The chief appraiser sends this notice by certified are unusually complex or to an owner who has designated an
mail or by email if requested by the property owner.259 agent.268
4. If a property owner files an untimely notice of protest before
the ARB approves the appraisal records, he or she is entitled to With the Notice of Appraised Value, the chief appraiser must
a hearing only if the board decides that the property owner had include information about the electronic system, including
good reason for failing to meet the deadline.260
instructions for accessing and using it.269 The notice of pro-
5. A property owner may file a late protest because the chief
test filed electronically must, at a minimum, include:
appraiser or ARB failed to mail a required notice. A property
owner must pay the taxes due on the portion of the property
that is not subject to dispute before the delinquency date to be • a statement as to whether the protest is brought under Tax
entitled to this type of hearing.261 Code Sections 41.41(a)(1) or 41.41(a)(2);270
6. A property owner is entitled to an ARB hearing solely on the • a statement of the property owner’s good-faith estimate of
issue of whether one or more taxing units delivered a tax bill in the property’s value;271 and
a timely manner if the owner files a late protest on or after the
taxes become delinquent, but not later than the 125th day after • an email address that the appraisal district may use to
the owner claims to have first received a tax bill from one or communicate electronically with the property owner in
more of the taxing units that taxes the property.262 connection with the protest.272
7. In some cases, a property owner may file with the ARB to
correct an error even after these deadlines.263 If the property owner accepts a settlement offer made by the
appraisal district, the chief appraiser must enter the settle-
Each appraisal district in a county with a population of ment in the appraisal records.273 If the property owner rejects
500,000 or more or that maintains a website accessible to the a settlement offer, the ARB is to hear and determine the
public must implement a system that allows certain residence protest.274
homestead owners to:
253
254
255
Tex. Tax Code §§1.07(c) and 41.44(a) 266
256
Tex. Tax Code §41.44(c-1) 267
257
Tex. Tax Code §41.44(c-2) 268
258
Tex. Tax Code §§1.07(c) and 41.44(a)(4) 269
259
Tex. Tax Code §1.07(d) and 11.086 270
260
261
Tex. Tax Code §§41.411(c) and 41.4115(b) 272
262
Tex. Tax Code §§41.4115(a) and 41.44(c-3) 273
263

The property owner’s email address provided to an appraisal adjustments, must be based on generally accepted appraisal
district is confidential and may not be disclosed by the ap- methods and techniques.285 An unequal appraisal protest
praisal district.275 must be determined in favor of the property owner unless
the appraisal district establishes that the appraisal ratio of the
Actions Subject to Protest property subject to the protest is equal to or less than the me-
The ARB can hear protests on any action taken by the ap- dian level of appraisal of a:
praisal district or chief appraiser that adversely affects a • reasonable and representative sample of other properties;
property owner.276 A property owner can protest any of the • sample of properties consisting of a reasonable number of
following: comparable other properties; or
• the property’s value;277 • reasonable number of comparable properties appropri-
• unequal appraisal;278 ately adjusted.286
• denial of exemptions;279 The determination of an unequal appraisal protest generally
• denial or modification of a temporary disaster exemption focuses on three key issues:
or a damage assessment rating;280 1. Is the number of properties selected for the sample
• denial or change of special appraisal;281 reasonable?287
• errors in the appraisal record;282 2. Are each of the properties in the sample comparable to
• failure to provide notice;283 or the subject property?288
• any other adverse action of the appraisal district, chief ap- 3. Was the value of each comparable property appropriate-
praiser or ARB.284 ly adjusted by reference to the subject property?289
Property Value Denial of Exemptions
This protest is typically based on the property owner’s opin- If the chief appraiser denied the residence homestead exemp-
ion that the property’s appraised value is above the market tion, the property owner should obtain evidence that he or
value or excessive. The evidence presented for an over-mar- she owned the home and used it as the principal residence.290
ket valuation protest may be sale prices of comparable prop- If the chief appraiser denied a residence homestead exemp-
erties in the area and other information, such as the condition tion for part of the land around the home, the property owner
of the property. For example, if the property is appraised at should show how much land is used as a residence.
$105,000 and the property owner presents evidence indicat-
ing that the market value is $100,000, it is expected that the If the chief appraiser denied an age 65 or older or disabled
ARB would lower the appraised value to $100,000 because residence homestead exemption, disabled veteran exemption
the $105,000 value is above market and excessive. or other exemption, the property owner should read about the
qualifications for exemptions and address them specifically
Unequal Appraisal in the protest.
An unequal appraisal protest is based on the property own-
er’s opinion that the property’s appraised value is unequal Denial or Modification of a Temporary Disaster
compared to the value of similar properties. The evidence Exemption or a Damage Assessment Rating
presented for an unequal appraisal, including the selection A property owner may protest the modification or denial
of comparable properties and the application of appropriate of an application for a temporary disaster exemption.291 To
275
Tex. Tax Code §41.415(h) 285
276
277
Tex. Tax Code §41.41(a)(1) 287
Sagemont Plaza v. Harris County Appraisal District, 30 S.W.3d 425, 427
278
Tex. Tax Code §41.41(a)(2) (Tex.App.— Corpus Christi, 2000, pet. denied)
279
Tex. Tax Code §41.41(a)(4) 288
Weingarten Realty Investors v. Harris County Appraisal District, 93
280
Tex. Tax Code §41.41(c)(1) and (2) S.W.3d 280 (Tex.App. – Houston [14th Dist.] 2002, no pet.)
281
Tex. Tax Code §41.41(a)(5) and (8) 289
Weingarten Realty Investors v. Harris County Appraisal District, 93
282
Tex. Tax Code §41.41(a)(3), (6) and (7) S.W.3d 280 (Tex.App. – Houston [14th Dist.] 2002, no pet.)
283
Tex. Tax Code §41.411(a) 290
Tex. Tax Code §11.13(j)(1)
284
Tex. Tax Code §41.41(a)(9) 291
Tex. Tax Code §41.41(c)(1)

qualify for a temporary disaster exemption, a property must recognizes both the old and new owners as having an inter-
meet the requirements under Tax Code Section 11.35(a); be est in the property’s taxes. If a property owner acquired the
in an area that the governor declared to be a disaster area property after Jan. 1, he or she may protest its value if the
following a disaster; and be at least 15 percent damaged by protest is filed before the deadline.298
the disaster.292
The appraisal records may show the property as located in
A property owner may also protest the determination of the one school district when it actually is in another. A property
appropriate damage assessment rating for property qualify- owner can protest the inclusion of property on the appraisal
ing for a temporary disaster exemption.293 The chief appraiser records if it should be taxed at another location in Texas.299
uses resources such as FEMA or the county emergency man-
agement authority to determine the percentage of disaster Failure to Provide Required Notice
damage and assigns a damage assessment rating of Level I, A property owner has the right to protest if the chief apprais-
II, III or IV based on the physical damage sustained by the er or ARB fails to give the property owner any required tax
property.294 notices.300
A property owner who believes he or she is not receiving all

Denial or Change of Special Appraisal
tax notices in a timely manner should contact the appraisal
If the property owner protests the value of a farm or ranch
district to ensure that the appraisal district’s records correctly
that is qualified for special appraisal, he or she should find
reflect the property owner names for each property and mail-
out how the appraisal district calculated the property’s value
ing address for all notices.
and compare the appraisal district’s information with that
of other experts on agriculture, such as the county ag exten- A property owner cannot protest a failure to give notice if
sion agent, the U.S. Department of Agriculture or other rec- the taxes on the property are delinquent.301 Before the delin-
ognized ag sources. The Comptroller’s Manual for the Ap- quency date, the property owner must pay a partial amount,
praisal of Agricultural Land provides information about the usually the amount of taxes not in dispute.302 A property
general appraisal process for qualified ag land. owner may ask the ARB to be excused from prepaying taxes;
to do so, he or she must file an oath attesting to an inability
Find out why the chief appraiser denied the application. Spe-
to pay the taxes in question and argue that prepaying them
cial appraisal laws have specific requirements for the prop-
would restrain his or her right to access to the ARB.303 The
erty to qualify. Provide evidence that the property is eligible
ARB will hold a hearing and decide the terms or conditions
for special appraisal based on its principal devotion to ag use,
of payment.304
as well as the history and intensity of this use.295
If the property owner has taken only part of the land out of ag Any Other Adverse Actions
use, he or she may need to show which parts still qualify.296 Property owners have the right to protest any appraisal dis-
If the land has been let lie fallow, the property owner should trict action that applies to and adversely affects them.305 For
show that the time it has been out of ag use is not excessive example, the chief appraiser may claim the property was
or is part of a typical crop or livestock rotation process for omitted from the appraisal roll and not taxed in a previous
the county.297 year.306 A property owner can protest only those actions that
affect the property.307
Errors in Appraisal Records
Errors in appraisal records often are simply mistakes.
The appraisal district may, for example, have failed to change 298
a property’s records, resulting in an incorrect owner. The law 299
300
301
292
293
Tex. Tax Code §41.41(c)(2) 303
294
Tex. Tax Code §11.35(f) and (g) 304
295
Tex. Tax Code Ch. 23, Subchs., C, D, E or H 305
296
297
Tex. Tax Code §23.51(1) and (2) 307

Hearing Notification The Appointment of Agent for Property Tax Matters form
asks a property owner to cite a date upon which the authoriza-
The ARB will notify a property owner at least 15 days in tion for this person will end.317 If a property owner does not
advance of the date, time, place and subject of the hear- provide an ending date, the agent will continue to represent
ing.308 The property owner may wish to discuss the protest the property owner until the property owner or the designated
issue with the appraisal district before the hearing. At the agent files a statement ending the appointment or until the
request of a property owner, the appraisal district must hold property owner appoints a new agent to act in the same capac-
an informal conference to discuss the protest prior to the ity for the same property.318
ARB hearing.309 The property owner may be able to work
out a satisfactory resolution with the appraisal district dur- If a property owner has not designated an agent to represent
ing the informal conference without appearing before the him or her before the ARB, the property owner is entitled to
ARB. one postponement without showing cause.319 The chairman
of the ARB may grant additional postponements if the prop-
At least 14 days before a protest hearing, the appraisal district erty owner can show good cause.320 Good cause is defined as
will mail the property owner: a reason that includes an error or mistake that was not inten-
• a copy of the Comptroller’s Property Taxpayer Remedies tional or was not the result of conscious indifference and will
pamphlet;310 not cause undue delay or injury to the person authorized to
• a copy of the ARB procedures;311 and extend the deadline or grant a rescheduling.321 The chief ap-
• a statement that the property owner is entitled to request a praiser can also agree to a postponement.322
copy of the data, schedules, formulas and any other infor-
Correction of Certain Errors Found After the
mation the chief appraiser will introduce at the hearing.312
Protest Filing Deadline
This information is usually mailed with the notice of hearing. The chief appraiser may change the appraisal roll at any time
to correct certain errors, including a name or address, a de-
Agent for Property Tax Matters termination of ownership, a description of property, a clerical
A property owner may represent him or herself in any prop- error or any inaccuracy prescribed by board rule that does
erty tax matter, or appoint an agent to handle specific du- not increase the amount of tax liability.323
ties.313 Except in limited circumstances, to appoint an agent
the property owner must provide that person with written On motion of the chief appraiser or property owner, the ARB
authorization to represent him or her.314 The property owner may make the following corrections to the appraisal roll for
must use the Appointment of Agent for Property Tax Mat- the current and previous five tax years:
ters form and a lessee designated by the property owner
• a clerical error made in writing, copying, transcribing or
may use the Lessee’s Designation of Agent for Property
entering data;
Tax Matters form available from the appraisal district or
• multiple appraisals of the same property more than once
the Comptroller’s website.315 The property owner must sign
in the same tax year, sometimes called double taxation;
the authorization; the agent may not sign the form appoint-
• inclusion of property that does not exist at the location or
ing him or herself. The form is not binding on the appraisal
in the form described in the appraisal roll; or
district until the property owner files it.316
• an error in which property is shown as owned by a person
who did not own the property on Jan. 1 of that tax year.324
308
309
310
Tex. Tax Code §41.461(a)(1) 318
Tex. Tax Code §1.111(c) and (d)
311
Tex. Tax Code §41.461(a)(3) 319
312
Tex. Tax Code §41.461(a)(2) 320
313
Tex. Tax Code §41.45(e-2)
314
315
316
Tex. Tax Code §§1.04(18) and 25.25(c)

For the current tax year, the ARB may grant a late hearing If the property owner receives a value reduction in a late
to correct certain over-appraisals;325 to correct values based ARB hearing, the taxing units will refund the difference be-
on a joint motion made by the property owner and the chief tween the tax payment and the correct amount of taxes to the
appraiser;326 or to hear the protest if the property owner was property owner who paid the taxes.336
not sent a required notice.327 A written motion requesting a
late hearing must be filed before the taxes become delinquent Protest Considerations
on Feb. 1.328 In deciding whether to file a protest, a property owner may
A property owner may file a motion to correct if he or she can want to first consider these questions:
show that the property’s appraised value for the current year 1. What reasons do I have to support the protest?
exceeds the correct appraised value by more than one-fourth 2. What evidence is available to support the protest?
for a residence homestead or by one-third for non-residence 3. Is the amount of any potential tax savings worth the time,
homestead property.329 To be eligible for an over-appraisal effort and expense of protesting?
hearing:
The following additional protest recourses are available on
• the property owner must not have had a prior ARB hear- the Comptroller’s website:
ing and determination on the dispute; and
• the property’s appraised value must not have been estab- • How to Present Your Case at an Appraisal Review
lished by agreement between the property owner or his or Board Hearing – A Homeowners Guide;
her agent and the appraisal district.330 • How to Present Your Case at an Appraisal Review
Board Hearing – A Guide for Small Businesses;
If a property owner proves that the value is in error by less • Appraisal Review Board Manual; and
than one-fourth for a residence homestead or less than one- • Continuing Education Course for Appraisal Review
third for a non-residence homestead property, the ARB may Board Members.
not order a correction.331 If the ARB orders a correction of an
over-appraisal error, the property owner will pay a 10 percent Respect the Process
penalty for the late filing based on the taxes for the correct
value.332 On joint motion of the property owner and chief ap- Many property owners do not choose to be represented by
praiser, the ARB must correct an error that resulted in an agents or attorneys in protest hearings. While the law re-
incorrect appraised value for the owner’s property.333 quires the hearings to be as informal as possible,337 the ARB
must follow the written and adopted hearing procedures.338
Before an ARB decision on a late hearing can take place, the Property owners are entitled to expect hearings to be con-
property owner must pay some amount of current taxes, usu- ducted as described in the hearing procedures.339
ally those not in dispute.334 The property owner may ask the
ARB to excuse him or her from prepaying taxes by filing an
A property owner should decide how to appear at the
hearing.
oath attesting to an inability to pay the taxes in question and
A property owner or property owner’s agent may appear at a
the ARB will decide, after a hearing, whether the prepayment
protest hearing in one of four ways:
would constitute an unreasonable restraint on the right of ac-
cess to the ARB.335 1. in person;
2. by affidavit, offering evidence or argument by affidavit
325
Tex. Tax Code §25.25(d) without appearing in person;
326
Tex. Tax Code §25.25(h) 3. by telephone conference call with argument and evidence
327
offered by affidavit; or
328
Tex. Tax Code §§25.25(d) and (h) and 41.411(c)
329
330
Tex. Tax Code §25.25(d-1)
331
332
Tex. Tax Code §25.25(d-1) 336
333
334
335

4. by videoconference with argument and evidence offered A property owner should stick to the facts of the
by affidavit. 340 presentation.
The ARB has no control over the appraisal district’s opera-
A property owner must request a hearing by telephone con- tions or budget, tax rates, inflation or local politics; address-
ference or videoconference on the notice of protest or in writing these topics in a presentation wastes time and will not
ing at least 10 days prior to the scheduled hearing date.341 A help a property owner’s case. The property owner should fo-
hearing by videoconference may not be available in a coun- cus on the details of the property appraisal or other protested
ty with a population of less than 100,000 if the ARB does concern.
not have the technological capability to offer a hearing by
videoconference.342 A property owner should present a simple and well-
organized protest.
A property owner should not contact ARB members A property owner should stress key facts related to the pro-
outside the hearing. test, writing them down in logical order and giving copies
ARB members are prohibited from communicating with to each ARB member. A property owner is required to give
the property owner or other persons about a property under either a written or electronic copy of his or her evidence to
protest outside of the hearing.343 Each ARB member must the appraisal district staff at or before the hearing.350
sign an affidavit stating that he or she has not discussed the
case with anyone.344 An ARB member who discusses a case Photographs and other documents are useful evidence. The
outside the hearing must remove him or herself from the property owner should practice his or her presentation be-
hearing.345 An ARB member who communicates on specific forehand to improve the delivery.
evidence, argument, facts or the merits of a protest with the
The property owner should recognize that the ARB
chief appraiser, appraisal district staff, or a member of the
acts as an independent judge.
appraisal district board of directors outside the hearing com-
The ARB must listen to the property owner and the chief
mits a Class A misdemeanor.346 A property tax consultant or
appraiser before making a decision; it is not a case of the
attorney representing a party to the ARB proceeding, chief
property owner against the chief appraiser and the ARB. All
appraiser, appraisal district staff or a member of the board
testimony at an ARB hearing must be given under oath.351
of directors commits a Class A misdemeanor if they com-
municate with an ARB member with the intent to influence Evidence
a decision.347 In value and unequal appraisal protests, the chief appraiser
has the burden of proving the property’s value by a prepon-
A property owner should be on time and prepared
for the hearing. derance of the evidence presented at the ARB hearing.352
Common courtesy dictates that a property owner should If the chief appraiser fails to meet this burden of proof, the
be on time for an appointment. ARBs often hear hundreds ARB must decide in the property owner’s favor.353
or thousands of protests. They have to be fair to everyone The law provides for a different burden of proof when a
and strive to provide every protester an appropriate amount property under protest has a market or appraised value of $1
of time to make a presentation.348 To hear every protest, the million or less and the property owner submits to the apprais-
ARB may place a time limit on hearings.349 al district a properly conducted, recently completed and certi-
fied appraisal of property value made by a licensed appraiser
at least 14 days before the hearing.354 In this case, the ap-
praisal district has the burden of establishing the value of the
340
property by clear and convincing evidence.355 If the appraisal
341
Tex. Tax Code §41.45(b-1)
342
Tex. Tax Code §41.45(b-4) district fails to do so, the ARB is required to rule in favor
343
344
345
346
Tex. Tax Code §6.411(a) and (d) 352
347
Tex. Tax Code §6.411(b) and (d) 353
348
Tex. Tax Code §41.43(a-1)
349

of the property owner.356 To be valid, the property owner’s recent sales of similar properties from neighbors or real es-
appraisal must meet specific statutory requirements.357 tate professionals. A property owner should ask the appraisal
district for the sales that it used.
The appraisal district also has a burden of establishing the
property’s value by clear and convincing evidence presented A property owner should consider using an independent ap-
at a hearing concerning value or unequal appraisal358 if: praisal by a real estate appraiser. A property owner’s insur-
ance records also may be helpful.
• the property’s appraised value was lowered in the previ-
ous year by the ARB, an arbitrator or a district court;359 If a property owner decides to use sales information to sup-
• the property’s appraised value in the preceding year was port a protest, he or she should:
not determined by a written agreement of the parties;360
• obtain documents or sworn statements from the person
and
providing the sales information;
• not later than 14 days before the protest hearing, the prop-
• use sales of properties similar in size, age, location and
erty owner files with the ARB and delivers to the chief ap-
type of construction;
praiser (1) information, such as income and expense state-
• use recent sales — those occurring as close to Jan. 1 as
ments or information regarding comparable sales, which
possible are the best to compare to the property;362 and
is sufficient to allow for a determination of the property’s
• provide photographs of the properties that sold.
appraised or market value if the protest is authorized un-
der Tax Code Section 41.41(a)(1); or (2) information that
is sufficient to allow for a determination of whether the Limited Binding Arbitration for
property was appraised unequally if the protest is autho- Certain Procedural Requirements
rized under Tax Code Section 41.41(a)(2).361 A property owner who has filed a notice of protest and be-
A property owner should make sure that the property’s de- lieves that the ARB or chief appraiser failed to comply with a
scription is correct. Are the measurements for the home or procedural requirement can file a request for limited binding
business and lot accurate? The property owner should pull to- arbitration (LBA) to compel the ARB or chief appraiser to
gether blueprints, deed records, photographs, a survey or his comply with the procedural requirement.363 A property own-
or her own measurements to contest the appraiser’s decision. er can request LBA to compel the ARB or the chief appraiser,
as appropriate, to:
Does the appraisal district’s survey show all of the home’s de-
fects, such as a cracked foundation or inadequate plumbing? • rescind ARB procedural rules adopted by the ARB that
The property owner should take photographs, statements are not in compliance with the Comptroller’s model hear-
from builders or independent appraisals to the hearing. ing procedures;
• schedule a hearing on a protest;
If a property owner wants to show that a property was not • deliver certain information to the property owner;
treated equally, he or she should ask the appraisal district for • allow the property owner to offer evidence, examine or
appraisal records on similar properties in the area to try to cross-examine witnesses or other parties and present
determine whether there is a significant difference in their arguments;
values. Once the property owner has the records of similar • set a hearing for a time and date certain and postpone a
property values, appropriate adjustments must be made for hearing that does not begin within two hours of the sched-
issues such as size, location and condition. uled time;
• schedule hearings on protests concerning multiple prop-
If a property owner wants to show that a property was ap-
erties identified in the same notice of protest on the same
praised excessively, he or she should collect evidence on
day at the request of the property owner or the property
owner’s designated agent; or
356
357
358
359
Tex. Tax Code §41.43(a-3)(1)
360
Tex. Tax Code §41.43(a-3)(2) 362
Tex. Tax Code §§23.01(a) and 23.013(f)
361
Tex. Tax Code §41.43(a-3)(3) 363
Tex. Tax Code §41A.015

• refrain from using or offering as evidence information re- Upon receipt of a completed request for LBA, the Comptrol-
quested by the property owner that was not delivered to ler’s office will process the request and appoint an arbitrator
the property owner at least 14 days before the hearing.364 to hear the dispute.373 Only arbitrators who are licensed at-
torneys may be appointed to hear an LBA case.374
A property owner cannot file a request for LBA unless he or
she has first filed a protest and followed the local complaint The appointed arbitrator will arrange for an LBA hearing.375
resolution process.365 Not later than 20 days after the hearing, the arbitrator will
issue an award that includes a determination on whether the
The property owner must deliver written notice of an alleged ARB or chief appraiser failed to comply with a procedural
violation of a procedural requirement to the ARB chair, chief requirement as alleged in the request for LBA.376
appraiser and the taxpayer liaison officer by certified mail
within five business days from the date the ARB or chief ap- A determination that the ARB or chief appraiser failed to
praiser was required to comply with the requirement.366 comply with a procedural requirement must direct the ARB
or chief appraiser, as applicable, to comply with the proce-
The ARB chair or chief appraiser has 10 days to deliver a dural requirement, or, if the protest hearing was held and the
written statement to the property owner confirming they will ARB issued an order of determination, direct the ARB to
comply with the procedural requirement or cure a failure to rescind the order and hold a new hearing on the protest that
comply with the requirement.367 complies with the procedural requirement.377 The ARB or the
The ARB can cure an alleged failure to comply with a pro- chief appraiser, as soon as practicable after receiving notice
cedural requirement that occurred during an ARB hearing of a determination, must take any action required to comply
by rescinding the order determining the protest and schedul- with the determination.378 The arbitrator’s determination is
ing a new hearing on the protest.368 Failure to comply with a final and cannot be appealed.379
procedural requirement is not a ground for postponement of If the arbitrator determines that the ARB or chief appraiser
a hearing on a protest.369 failed to comply with the procedural requirement, the ap-
If the ARB chair or chief appraiser does not provide the praisal district must pay the arbitrator’s fee and the deposit
property owner with a statement of the intention to comply will be refunded to the property owner, less the Comptrol-
with the procedural requirement or cure a failure to comply ler’s $50 administrative fee.380 If the arbitrator determines
with the procedural requirement, the property owner may file that the ARB or chief appraiser complied with the procedural
a request for LBA with the Comptroller’s office no earlier requirement, the Comptroller’s office pays the arbitrator’s fee
than the 11th day and no later than the 30th day after de- from the property owner’s deposit.381
livering notice of the alleged procedural violation the to the An LBA determination does not affect the property owner’s
ARB chair, chief appraiser, and taxpayer liaison officer.370 right to appeal the final ARB order of determination to dis-
The request must be submitted on the form prescribed by the trict court or to pursue any other statutory remedy available
Comptroller’s office and include a required deposit ranging to the property owner.382
from $450 to $550 based on the property type and value.371
A property owner may submit a single LBA request that Appealing an ARB Order
involves multiple properties, multiple protest hearings and Once the ARB rules on the protest, it will send the property
multiple allegations of failure to comply with one or more owner a written order and a copy of the Comptroller’s ARB
procedural requirements.372
373
364
Tex. Tax Code §41A.015(a) 374
Tex. Tax Code §41A.015(p)
365
Tex. Tax Code §41A.015(a) 375
Tex. Tax Code §41A.08(a)
366
Tex. Tax Code §41A.015(b)(1) 376
Tex. Tax Code §§41A.015(j)(1) and 41A.09(a)
367
Tex. Tax Code §41A.015(b)(2) 377
Tex. Tax Code §41A.015(j)(2)
368
Tex. Tax Code §41A.015(c) 378
Tex. Tax Code §41A.015(m)
369
Tex. Tax Code §41A.015(c) 379
Tex. Tax Code §41A.015(j)(4)
370
Tex. Tax Code §41A.015(d) 380
Tex. Tax Code §41A.015(k)
371
Tex. Tax Code §41A.015(e) 381
Tex. Tax Code §41A.015(l)(1)
372
Tex. Tax Code §41A.015(o) 382
Tex. Tax Code §41A.015(n)

survey by certified mail.383 If the property owner is dissatis- arbitration.395 Binding arbitration is available for market
fied with the ARB’s findings, he or she has the right to file or appraised value or unequal appraisal determinations by
an appeal with the district court in the county in which the ARBs.396 Binding arbitration is available only if the property
property is located,384 or, in certain instances, request binding is:
arbitration385 or appeal to the State Office of Administrative
• a residence homestead, regardless of value;397 or
Hearings (SOAH).386
• has an appraised value of $5 million or less.398
District Court
As with filing a suit in district court, if the property owner
A property owner is entitled to appeal an order of the ARB
requests binding arbitration he or she must pay taxes that are
to district court.387 To exercise this right, the property owner
not in dispute before the delinquency date.399 To appeal an
must file a petition for review with the district court within
ARB order to binding arbitration, the property owner must
60 days after receiving notice that a final order has been en-
file with the appraisal district not later than the 60th day after
tered, or at any time after the hearing but before the 60-day
receiving notice of the order.400
deadline.388 If the property owner is appealing the ARB’s de-
termination of a motion to correct the appraisal roll, he or she To apply for binding arbitration, the property owner must
must file suit to compel the appraisal renew board to order complete the request form prepared by the Comptroller’s of-
a change in the appraisal roll within 60 days after receiving fice, attach a copy of the ARB order determining protest and
notice of the ARB’s determination.389 Failure to file a petition submit a required deposit ranging from $450 to $1,550 based
within this period bars any appeal to district court.390 on the property type and value.401
The property owner is required to make a partial payment of The property owner must make the deposit in the form of a
taxes, usually the amount of taxes not in dispute, before the money order or cashier’s check, payable to the Texas Comp-
delinquency date.391 The property owner may ask the district troller of Public Accounts.402 Although the deposit is made
court to be excused from prepaying taxes; to do so, he or she payable to the Comptroller’s office, the property owner must
must file an oath attesting to an inability to pay the taxes in file it, along with the application and copy of the ARB order,
question and argue that prepaying them would restrain the in the appraisal district in which the ARB order was issued.403
property owner’s right to go to court on the protest.392 The The appraisal district will complete the application and for-
district court will hold a hearing and decide the terms or con- ward the request and deposit to the Comptroller’s office.404
ditions of payment.393
After the Comptroller’s office receives the property owner’s
An appeal to district court means the property owner is en- request, the property owner and the appraisal district enter
titled to trial by jury, but the property owner may request a into a 45-day settlement period.405 If the parties do not reach a
bench trial. At a bench trial, the trial judge hears and decides settlement by the end of the 45-day period, the Comptroller’s
all fact and legal issues in the case without a jury.394 office will appoint an eligible arbitrator from the Comptrol-
ler’s registry.406
Binding Arbitration
As an alternative to appealing an ARB determination to dis-
trict court, the property owner may appeal through binding
383
384
Tex. Tax Code §§42.01(a) and 42.21 396
385
Tex. Tax Code §41A.01 397
386
Tex. Gov’t Code §2003.901 398
387
Tex. Tax Code §§42.01(a) and 42.21 399
388
389
Tex. Tax Code §41A.03(a)(1) and (2)
390
Tex. Tax Code §41A.03(a)(2) and Tex. Admin. Code §9.4252(b)
391
392
393
Tex. Admin. Code §9.4255(c)
394
Tex. Admin. Code §9.4255(c)

The appointed arbitrator will arrange for an arbitration hear- To appeal an ARB order to SOAH, the property owner must
ing.407 Not later than 20 days after the hearing, the arbitra- file with the chief appraiser of the appraisal district, not later
tor will issue an award that includes a determination of the than the 30th day after the date the property owner receives
property’s appraised or market value, as appropriate.408 The notice of the order, a completed notice of appeal to SOAH in
arbitrator’s award is final and may not be appealed except in the form prescribed.416 The property owner must file a $1,500
certain instances.409 deposit not later than the 90th day after the date the he or she
receives notice of the order.417 The chief administrative law
If the arbitrator’s decision is closer to the property owner’s judge prescribes the form of notice of appeal.418 The form
opinion of value stated in the request for arbitration, the ap- must require that the property owner provide a copy of the
praisal district will pay the arbitrator’s fee and the Comptrol- ARB’s order; a brief statement explaining the basis for the
ler’s office will refund the property owner’s deposit, less a appeal; and a statement of his or her opinion of the appraised
$50 administrative fee that the law provides that the Comp- or market value, as applicable, of the property.419
troller’s office retain.410 If the arbitrator’s decision is closer to
the value determined by the ARB, or equal to half of the dif- As soon as practicable after receiving of a notice of appeal,
ference between the property owner’s value and the ARB’s a chief appraiser must indicate, where appropriate, those en-
value, the arbitrator’s fee will be paid from the property tries in the records that are subject to the appeal; submit the
owner’s deposit.411 Any deposited amount remaining after notice of appeal and filing fee to SOAH; and request the ap-
the arbitrator’s fee and the Comptroller’s $50 administrative pointment of a qualified administrative law judge to hear the
fee has been paid, will be refunded to the property owner.412 appeal.420
State Office of Administrative Hearings (SOAH)

Property owners also may appeal ARB determinations of
property with value that exceeds $1 million to SOAH.413 The
decisions of SOAH administrative law judges are final and
may not be appealed.414 Certain properties are not subject to
SOAH review (i.e., industrial property).415
407
408
409
Tex. Civ. Prac. & Rem. Code §171.088 and Tex. Tax Code §§41A.09(b)
(1) and (4) and 41A.11
410
Tex. Tax Code §41A.09(c)
411
Tex. Tax Code §41A.09(d)(1)(A) 416
Tex. Gov’t Code §2003.906(a)(1) and (a-1)
412
Tex. Tax Code §41A.09(d)(1)(B) 417
Tex. Gov’t Code §2003.906(a)(2) and (a-2)
413
Tex. Gov’t Code §2003.901 418
414
Tex. Gov’t Code §2003.914 419
415
Tex. Gov’t Code §2003.904 420
Tex. Gov’t Code §2003.906(b)

Texas Property Tax
Assessment
Once the ARB approves the appraisal records, the chief ap- Total taxes collected increase only when government spend-
praiser prepares and certifies an appraisal roll for each taxing ing increases, but Texas law gives taxpayers a voice in deci-
unit.421 If the ARB has not approved the appraisal records by sions affecting property tax rates.
July 20, the chief appraiser certifies an estimate of taxable
A taxing unit must identify its needs and prepare a budget
values by July 25 to the assessor for each taxing unit.422 An
to meet them. To assist counties, cities and school districts
appraisal roll lists all the taxable property within the taxing
in this process, the chief appraiser prepares and certifies an
unit’s boundaries.423 Once the appraisal roll is certified, the
estimate of the taxable value of property within that taxing
appraisal district’s job is finished. It has, at least in theory,
unit to the tax assessor by April 30.427 Based on current year’s
provided a set of equal and uniform property values for the
values, a taxing unit then must decide how much property tax
use of all local taxing units.424
revenue is necessary to fund that budget and what tax rate is
The governing body of each taxing unit adopts tax rates an- needed to produce that amount. It also must determine the
nually, generally before Sept. 30.425 Taxing units for a tax- tax revenue it will need to pay its long-term debt.
able property always include a county and school district, but
Cities, counties and school districts must hold a public hear-
a property owner also may pay taxes to a city or to special
ing on the proposed budget and publicize the date, time and
purpose districts such as hospital, junior college or water dis-
location.428 The proposed budget must be made available for
tricts. The tax roll is created when tax rates are applied to
inspection and posted on the city, county or school district
taxable values.426
website.429
Generally, after receiving the appraisal roll, each governing
Adoption of a county budget, in most cases, and a city budget
body must decide what services the taxing unit will provide
that will require raising more revenue from property taxes
in the coming year and determine how much money it will
than in the previous year, requires a separate vote to ratify the
need to do so.
property tax increase reflected in the budget.430
Determining the Tax Rate The vote to adopt a county or city budget must be a record
As a taxpayer, it is important for a property owner to un- vote and the adopted budget must be posted on the city or
derstand how government spending affects the size of a tax county website.431
bill. Changes in property values may affect a tax bill, but do
not necessarily increase or decrease the total amount of taxes Calculating Tax Rate
paid to a taxing unit; that is determined by the taxing unit’s Beginning in early August, most taxing units take the first
budget. step toward adopting a tax rate by calculating and publishing
the no-new-revenue (NNR) tax rate and voter-approval tax
rate (VATR).432 In certain cases, school districts may choose
421
to adopt a tax rate before the adoption of a budget.433 The
422
423
424
Tex. Const. art. VIII, §1(a)
427
425
428
Tex. Educ. Code §44.004; Tex. Loc. Gov’t Code §§102.006, 111.007,
426
Tex. Tax Code §26.09(c) 111.038(a) and 111.067
429
Tex. Loc. Gov’t Code §§102.005(c) and 111.006(b); Tex. Educ. Code
§44.0041; Tax Code §26.18
430
Tex. Loc. Gov’t Code §§102.007(c), 111.008(c), 111.039(c) and 111.068
431
Tex. Loc. Gov’t Code §§102.007(a), 102.008(a)(2)(A), 111.008(a),
111.009(a)(2)(A), 111.039(a), 111.040(a)(2)(A) and 111.068(a)
432
433
Tex. Educ. Code §44.04(j)

chief appraiser of its appraisal district must have certified to hearing.442 The public hearing allows taxpayers to voice opin-
the school district’s tax assessor an estimate of the school ions about the proposed tax increase and ask questions of
district’s taxable property value.434 the governing body.443 The governing body may vote on the
proposed tax rate at the hearing. If it does not, the governing
The NNR tax rate is the rate the taxing unit needs to gener- body must announce a date, time and place for the tax rate’s
ate about the same amount of revenue it received in the year formal adoption.444
before on properties taxed in both years.435 If property values
rise, the NNR tax rate will go down and vice versa.436 The If a taxpayer believes that a taxing unit failed to comply with
actual tax rate depends on the budget adopted by the govern- tax rate adoption laws in good faith, he or she can ask a dis-
ing body. trict court for an injunction to stop tax collections until the
taxing unit complies with the law.445
The VATR would provide cities, counties and special pur-
pose districts with about the same amount of tax levied in the
Election to Approve Tax Rate
previous year for day-to-day operations, plus an extra 3.5 per-
cent increase for operating expenses and sufficient revenue to A taxing unit other than a school district or a water district is
pay its debts in the coming year.437 Junior college districts, required to hold an election to approve a tax rate when:
hospital districts and certain small taxing units are allowed • a special taxing unit or a city with a population of 30,000
an 8 percent increase for operating expenses. The VATR for or more adopts a rate that exceeds the VATR; or
school districts is tied to school funding calculations plus the • any taxing unit other than a special taxing unit or a city
debt tax rate.438 with a population of less than 30,000 regardless of wheth-
Taxing units must publish their NNR tax rate and VATR on er it is a special taxing unit adopts a rate that exceeds the
their websites.439 If a property owner believes that a taxing greater of its VATR or de minimis rate.446
unit did not calculate and publish these rates or other required The governing body shall hold an election in the taxing unit
information in good faith, he or she may ask the district court that occurs in November of the applicable tax year. The order
to stop the taxing unit from adopting a tax rate until it com- calling the election may not be issued later that the 71st day
plies with the law.440 before the date of the election.447 A successful election limits
Local government taxing units and special districts are re- the taxing unit’s current tax rate to the VATR.
quired to publish their proposed tax rates and notice of hear- If a school district adopts a tax rate that exceeds the VATR, it
ing as a quarter-page notice in a local newspaper or by mail- must automatically hold a tax rate ratification election (TRE).
ing notice to each taxpayer no later than Sept. 1 or 30 days A successful election limits the taxing unit’s current tax rate
after receiving each certified appraisal roll. School districts, to the VATR.448 An election is not required in a school dis-
small taxing units, water districts and other taxing units have trict if a tax rate increase is intended to pay for responses to
other specific notice requirements. 441 a natural disaster.449
Generally, if a taxing unit wants to increase its property tax Only in certain circumstances can voters in local taxing units
rate above the lower of either the NNR tax rate or VATR, petition for an election. The petition-based election is for a
it must publish a quarter-page notice in a local newspaper taxing unit other than a special purpose district, school dis-
or mail notice to each taxpayer to alert them of a special trict, or city of 30,000 or more and only where the taxing
unit’s de minimis rate is higher than the VATR.450 If a taxing
434
435
Tex. Tax Code §26.04(c)(1) 442
Tex. Tax Code §§26.05(d) and 26.06(b) and (c)
436
Tex. Tax Code §26.04(c)(1) 443
437
Tex. Tax Code §26.04(c)(2) 444
438
Tex. Tax Code §26.08(n) 445
439
Tex. Local Gov’t Code §140.010(c); Tex. Tax Code §§26.04(e), 26.04(e- 446
1) and 26.052(b)(2) 447
Tex. Tax Code §26.07(k) and (c)
440
441
Tex. Tax Code §§26.04, 26.04(e-1) and 26.052(b) and (c); Tex. Water 449
Code §§49.107 and 49.236 450

unit adopts a rate that is less than or equal to the de minimis A property owner must pay taxes on property owned on Jan.
rate and higher than the VATR calculated either under the 1 of the tax year.459 Dealers and retailers of certain special
regular (3.5 percent) or special (8 percent) formula voters can inventories must submit a monthly inventory tax statement to
petition for an election. the assessor-collector.460 If the business owner is a motor ve-
hicle, vessel and outboard motor or heavy equipment dealer
A petition calling for the taxing unit to hold a tax rate elec- or a manufactured housing retailer, he or she should check
tion must: with the appraisal district or tax office for details on how to
• state that it is intended to require an election in the taxing report property and pay taxes on inventory.
unit on the question of reducing the tax rate for the cur- If a property owner goes out of business after the first of the
rent year;451 year, he or she is still liable for taxes on property owned on
• be signed by at least 3 percent of the registered voters in Jan. 1.461 A property owner is not relieved of this liability be-
the taxing unit, depending on whether the adopted tax rate cause he or she no longer owns the property.462 If a property
raises more or less than $5 million for maintenance and owner conducts a going-out-of-business sale, he or she must
operations taxes;452 and request a going-out-of-business permit from the appraisal
• be presented to the taxing unit’s governing body within district.463 A business owner should check with the appraisal
90 days after it adopts the tax rate.453 district for more details.
Once the taxing unit’s governing body receives a petition and The tax bill may include taxes for more than one taxing unit
finds that it is valid (or fails to act within the time allowed), it if taxing units have combined their collection operations.464
must order an election to be held on the next uniform election
date that allows for compliance with election laws.454
If a majority votes in favor of the tax rate reduction, the tax

rate is reduced to the VATR immediately.455
Tax Bills, Receipts and Other Records

The tax assessor must mail tax bills to both the property
owner and his or her designated agent, if one is authorized.456
If a property owner’s mortgage company pays property tax-
es on a home out of an escrow account, the property owner
should make sure the taxing units send original tax bills to
the mortgage company so that it receives the tax bill. A prop-
erty owner may want to request a receipt from the tax of-
fice to verify that the mortgage company paid these taxes on
time.457 The tax collector must give the taxpayer a receipt for
the tax payment if he or she requests one.458
451
452
453
Tex. Tax Code §26.075(d)(3) 459
454
Tex. Tax Code §26.075(e) 460
Tex. Tax Code §§23.122(b), 23.1242(b), 23.125(b) and 23.128(b)
455
456
457
Tex. Tax Code §31.075(a) 463
Tex. Business & Commerce Code §17.83
458

Texas Property Tax
Collections
Tax collections begin around Oct. 1.465 A property owner his or her right to a final determination of the appeal.475 If a
typically has until Jan. 31 of the following year to pay the property owner is appealing an ARB order to binding arbi-
taxes.466 On Feb. 1, penalty and interest charges begin accu- tration, he or she must pay the tax amount not in dispute.476
mulating on most unpaid tax bills.467 If Feb. 1 is drawing near
A property owner may make a payment under protest by in-
and no bill has been received, a taxpayer should contact the
dicating so on the instrument of payment or a document ac-
local tax office to find out how much tax is owed and make
companying the payment.477
sure the correct name and address are on record.
Under certain circumstances, taxing units may impose ad- Payment Options
ditional penalties for legal costs on unpaid taxes.468 Before a Check with the tax collection office on local payment options
person buys a home, it is a good idea to obtain a tax certifi- that may be available, such as tax deferrals, discounts, escrow
cate for the home from all jurisdictions that tax it. The tax accounts, installments and split payments.
certificate will show whether delinquent taxes are owed on
the property.469 Property Tax Deferrals
A property owner may defer homestead taxes for value ex-
Tax Payment Deadlines ceeding 105 percent of the home’s appraised value, plus any
If the tax bill is mailed after Jan. 10, the delinquency date new improvements, from the preceding tax year.478 The prop-
is postponed to the first day of the next month that allows at erty owner must file a deferral application with the appraisal
least 21 days to pay after the original bill is mailed.470 The district before the taxes become delinquent479 and pay the
delinquency date must be printed on the bill.471 taxes based on 105 percent of the home’s value.480
Most property owners pay their property taxes before year’s While any taxpayer can defer payments on value that exceeds
end so they can deduct the payments from their federal in- 105 percent, a homeowner age 65 or older or disabled or an
come taxes. If a property owner is appealing an ARB order individual qualified for a Tax Code Section 11.22 disabled
to district court, he or she must pay the amount not in dispute; veteran exemption may defer or postpone paying any prop-
the amount due based on the ARB order; or the amount of erty taxes on the full taxable value of the home for as long as
taxes imposed on the property in the preceding year.472 If a he or she owns and lives in it.481
property owner’s taxes are subject to the split-payment op- To postpone tax payments, the taxpayer must file a tax defer-
tion, he or she may pay one-half of the required tax before ral affidavit with the appraisal district.482A tax deferral only
Dec. 1 and the remaining half of that amount before July 1 of postpones the tax liability.483 It does not cancel it.484
the following year.473 The appeal must be accompanied by a
statement in writing of the amount of taxes not in dispute the Interest on the amount due accrues at the rate of 5 percent a
property owner proposes to pay.474 A property owner may pay year.485 Past taxes and interest become due 181 days after the
an additional amount of taxes at any time without forfeiting
475
465
466
467
468
Tex. Tax Code §§33.01(a), 33.07 and 33.08 479
Tex. Tax Code §33.065(b) and (c)
469
470
Tex. Tax Code §33.06(a) and (b)
471
Tex. Tax Code §31.01(c)(7) 482
472
473
Tex. Tax Code §33.06(b) and (d)
474
Tex. Tax Code §42.08(b-1) 485

collector delivers a notice of delinquency once the property installment deadlines apply.496 Installment payments apply to
owner or qualified surviving spouse no longer owns or lives all taxing units on the tax bill.497
in the home that qualified as a homestead.486 Any penalty
The property owner must give written notice with his or her
and interest that was due on the tax bill for the home before
first payment that the property owner is paying the taxes
the tax deferral will remain on the property and become due
in installments.498 A property owner may make the first in-
when the deferral ends.487
stallment and request the installment agreement prior to the
A property owner may abate a delinquent tax lawsuit by fil- first day of the first month after the delinquency date, but
ing this affidavit with the court.488 A property owner may the owner will be penalized for the delinquency of the first
stop a pending tax sale by filing the affidavit with the officer installment.499
conducting the sale and the appraisal district, taxing unit or
If a property owner misses an installment payment, he or she
taxing unit’s delinquent tax attorney.489
will receive a 6 percent penalty and pay interest at 1 percent
Installment Payments per month for each month of delinquency.500
Some taxpayers can pay homestead taxes in installments.490
If a person qualifies for a residence homestead exemption be- Other Payment Options
Check with the tax collector on payment options that may be
cause he or she is disabled, age 65 or older, a disabled veteran
available on a local option basis, such as:
or the surviving spouse of a disabled veteran, the property
owner may pay the current taxes on the home in four install- • discounts, if taxes are paid early;501
ments.491 This installment option is also available to partially • split payment of taxes, allowing the property owner to
disabled veterans and their unmarried surviving spouses with pay half the taxes by Nov. 30 and the remainder by June
homes donated by charitable organizations.492 30 without a penalty;502
• partial payment of the taxes;503
Homeowners and some small businesses whose property is
• escrow agreements for a special year-round account;504
damaged in a disaster or emergency and located in a des-
and
ignated disaster area or emergency area also may pay their
• work contracts, in lieu of paying taxes, for certain tax-
taxes in four installments.493
payers doing certain duties.505
If a governing body of a taxing unit adopts the installment
A tax collector is only required to enter into an escrow agree-
payment option for small businesses whose property is in a
ment when one is requested by:
disaster area or emergency area that has not been damaged as
a result of the disaster or emergency, they may also pay their • a disabled veteran or a recipient of the Purple Heart, Con-
taxes in four installment payments.494 gressional Medal of Honor, Bronze Star Medal, Silver Star,
Legion of Merit or a service cross awarded by a branch of
A property owner may pay taxes imposed on property in
the United States armed forces for payment of property
four equal installments without penalty or interest if the first
taxes on the property owner’s residence homestead;506 or
installment payment is paid before the Feb. 1 delinquency
• a manufactured homeowner for payment of property taxes
date and the remaining three payments before April 1, June
on the property owner’s manufactured home.507
1 and Aug. 1.495 If the delinquency date is not Feb. 1, other
496
497
486
Tex. Tax Code §33.06(b) and (f) 498
Tex. Tax Code §§31.031(a-1) and (a-2) and 31.032(b) and (b-1)
487
Tex. Tax Code §§31.031(a-2) and 31.032(b-1)
488
Tex. Tax Code §§31.031(b), 31.032(d) and 33.01(c)
489
Tex. Tax Code §33.06(c-1) 501
490
491
Tex. Tax Code §31.031(a) 503
492
Tex. Tax Code §31.031(a)(2)(B) 504
493
Tex. Tax Code §31.032(a) 505
Tex. Tax Code §§31.035, 31.036 and 31.037
494
495
Tex. Tax Code §31.031(a-1) 507
Tex. Tax Code §31.072(i)

Failure to Pay Taxes Taxpayer can be sued.
The tax collector’s last resort is to take a property owner to
The longer a taxpayer allows delinquent property taxes to go
court if he or she is delinquent in paying taxes. Court costs
unpaid, the more expensive it becomes, as penalty and inter-
and other expenses will be added to the delinquent tax bill.516
est charges will be added to the taxes due.508 The property
also may be foreclosed or seized.509 If a taxpayer owns taxable property on Jan. 1, he or she is
liable for all taxes due on the property for that year.517 The
Penalty and interest charge accrue.
property owner can be sued for delinquent taxes even if the
Regular penalty charges may be as high as 12 percent de-
property has since been sold or transferred.518
pending on how long the taxes remain unpaid.510 Interest is
charged at the rate of 1 percent per month with no maxi- Property may be sold.
mum.511 Private attorneys hired by taxing units to collect Each taxing unit holds a tax lien on each of a property own-
delinquent accounts can charge an additional 20 percent er’s taxable properties.519 A tax lien automatically attaches
penalty.512 to the property on Jan. 1 each year to secure payment of all
taxes.520
Some tax collectors allow property owners to pay delinquent
taxes in installments for up to 36 months.513 They are not This tax lien gives the courts the power to foreclose on the
required to offer this option, except for a residence home- lien and seize a property owner’s property, even if he or she
stead.514 Before signing an installment agreement, the prop- did not own the home on Jan. 1.521 The property then will be
erty owner should know that the law considers his or her auctioned and the proceeds used to pay the past due taxes.522
signature an irrevocable admission that the property owner
owes all the taxes covered by the agreement.515
508
509
Tex. Tax Code §§33.41, 33.21, 33.91 and 33.911 516
510
511
512
Tex. Tax Code §§33.07 and 33.08 519
513
Tex. Tax Code §33.02(a)(4) 520
514
515
Tex. Tax Code §§34.01(a) and 34.02(b)(6)

For more information, visit our website:
comptroller.texas.gov/taxes/property-tax
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Texas Comptroller of Public Accounts

Publication #96-1425
August 2022

Texas Property Tax Basics: August 2022

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Texas Property Tax Basics: August 2022

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Glenn Hegar

Texas Comptroller of Public Accounts

Texas Property Tax Basics – August 2022 i

The Comptroller’s office helps ensure that taxpayers have 8

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January 31 of the next year

February 1 of the next year

August-September July 1 of the next year April-May

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If a late-filed homestead exemption is granted, the property 112

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A separate partial exemption is also available for residence

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The chief appraiser determines whether change of use has

For more information about the special appraisal of ag land,

• Manual for the Appraisal of Agricultural Land;

The Texas Parks and Wildlife Department publishes

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A property owner who believes he or she is not receiving all

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State Office of Administrative Hearings (SOAH)

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If a majority votes in favor of the tax rate reduction, the tax

Tax Bills, Receipts and Other Records

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