Just as there’s a tax season for personal income taxes, when individuals and tax accountants across the state face tight deadlines to ensure everything is in order and accounted for, property tax professionals also have their season. This occurs in the late spring and early summer as individual appraisal districts finalize all the details, hear property tax protests, and resolve outstanding issues to certify their appraisal roll on time. Once the district wraps up the vast majority of outstanding protests, it’s time for the tax authorities to apply their rate calculations.
This process doesn’t directly involve homeowners, but it shapes the timeline for making protests, fighting for lower property taxes, and ensuring your records are fair and accurate. The more you know, the more decisively and effectively you can act. So, before this year’s appraisal district rolls begin the certification and submission process, take a moment to learn how the appraisal roll works, how it fits into the overall property tax process, and how you can benefit from the information.
Why Are Property Taxes So Important in Texas?
Local property taxes are a central part of local city and county budget funding. They go toward school districts, road construction maintenance, emergency services equipment and personnel budgets, and more. Because there is no state income tax, local property tax rates are much higher than many other states with a state income tax will see. Texas has an average effective tax rate of around 1.6%, compared to the national average of 0.99%.
Related: What Is the Difference Between the Appraised Value and the Market Value of Homes?
Because of this high rate, securing the correct property appraisal value is essential—if not dire—for many Texans nationwide. With that 0.61% increase over the national average, an overestimation in value of $20,000 or $50,000 could have you paying $122 or $305 more than you would if a similar mistake had happened in a different state. Not only are the property taxes important to your local community, but getting fair appraisals and fair property tax bills is also vital for every individual homeowner.
The Role of the Appraisal District Roll: How Property Taxes Are Calculated in Texas
The more you know about the property appraisal and taxation process, the better you can understand (and act on) your rights to ensure you’re paying a fair property tax amount based on accurate records. While many homeowners see their Notice of Appraised Value and autumn property tax bill, the rest of the process may be a bit of a mystery. Here, we break down the moving parts that don’t directly involve notices to homeowners.
What Is an Appraisal District Roll?
The appraisal roll is the comprehensive record of properties and property details within a given tax jurisdiction. Most importantly, this document includes the new appraisal values for each parcel. It is submitted to the Texas Comptroller of Public Accounts and certified every year. In 2023, this document will be due on August 1st for jurisdictions with between 10,000 and 200,000 taxable parcels and on September 1st for larger communities. Once the appraisal roll has been submitted and certified, property tax assessors can use the information to prepare individual tax bills for each property owner under the rules of Tax Code Section 31.01.
Where Does the Information in the Appraisal District Roll Come From?
The submission of appraisal roles slots neatly into place between the time when individual homeowners can protest their property taxes—or, more precisely, their appraised property values—and the calculation of specific tax bills. This is because every appraisal district needs to have accurate, up-to-date records before submitting the appraisal roll. That requires giving residents enough time to verify their property profiles and register protest notices.
The details start with the appraisal district, which assesses the value of each taxable parcel of property in their area as of January 1st of that year. This appraisal process must happen at least once every three years, and the property values can be updated through reasonable calculations and estimates in the intervening years. If your home’s property value increases, you should receive a Notice of Appraised Value, which includes your new appraised value, estimates regarding tax levies, and a reminder that you can protest the valuation if you think it’s inaccurate.
Homeowners generally have a period of 30 days from their appraisal notice date to file a notice of protest if they want to. Through this process, you can make a counterargument regarding the appraised value or clear up inaccurate information regarding your details or exemptions you’re entitled to. This process must happen promptly throughout May-July so that the appraisal district can revise and finalize the roll. The final appraisal roll must reflect any changes decided through the protest process or ARB decisions.
Zoom Out: An Overview of the Total Property Value and Property Tax Process
This may be the first time you’ve seen how the appraisal roll acts within the property tax process. In a broad overview, here’s the general timeline and steps:
- Winter and early spring: Appraisal district staff update records and prepare the property assessments for the new tax year.
- April: Notices of Appraised Value go out to qualifying homeowners. Other property owners check their property details for the new year on their local appraisal district website. (Check with your local government or appraisal district on specific steps to access this information either online or via paper communications.)
- April and May: Homeowners or their appointed representatives can file protests regarding their property’s values or other details,
- May, June, and July: Homeowners that protested will communicate with the appraisal district through informal meetings and hearings or a formal hearing to make any changes to the records. If you have a formal hearing before a board, their decision is effectively final. It will be reflected in the appraisal roll (though you can appeal their decision in specific circumstances).
- August 1 or September 1: The finalized appraisal roll will be submitted, and taxes will be calculated.
- Starting October 1: Homeowners will receive finalized property tax bills that reflect the property value in the appraisal roll and any exemptions in effect.
- January 31 of the following year: The property tax bill amount is due for the prior year (though qualifying homeowners on payment plans will have different payment deadlines).
While you and other homeowners will not interact directly with the appraisal roll, knowing its function in the entire taxation process can help you more effectively navigate the springtime processes of verifying your details and protesting any inaccuracies.
What to Do When You Think the Appraisal Value Is Wrong
Now that you know more about the appraisal district roll, what actions can you take with this information? As a homeowner, you can protest your property appraisal value every year. With this extra clarity, you can more decisively:
Protest by the Deadline
The deadline listed on your Notice of Appraised Value—or, if you didn’t receive a notice or want to be extra cautious, May 15—is effectively final. The appraisal district needs to have your response by then, as they do not accept late filings..
Related: 7 Key Things You Should Know About Homeowner Taxes in Texas
So make sure you set aside the time to fill out the form. Alternatively, consider hiring a professional service that can manage the protest and evidence-gathering process.
Provide Evidence, and Don’t Back Down
After you file a protest, you may receive an automatic adjustment, an invitation to an informal meeting, or a scheduled date for an official hearing. You may also go through a process that involves all three steps. Now is the time to provide clear adjusted documentation, and unless you’re satisfied with their counteroffer, don’t let go of what you believe your property’s appraised value should be. Once you reach a hearing stage, you can present information such as:
- The sales value of comparable homes in your neighborhood after they have been adjusted
- Quotes documenting the money it might cost to make your property equivalent to those similar homes
- Any other details about your property that indicate the district’s calculations were too generalized or ambitious
Fight to Have the Right Numbers on the Appraisal District Roll This Year With Home Tax Shield
Of course, that process takes time. Just like your appraisal district is on a tight schedule, you may not have time to go through a complete hearing process or spend the time collecting detailed documentation. But we’re here to help.
At Home Tax Shield, we can assess the value of your home to see how the number differs from that of the appraisal district’s figure. Then we can manage the property tax protest process on your behalf so you can fight for lower property taxes without spending that time on the process yourself. Sign up today to get started for the upcoming appraisal cycle.