M. M. Mason & Company
Property Tax Consultants
How does the property tax system work?
There are three main parts to the property tax system in Texas:
The system has four stages: valuing the taxable property, protesting the values, adopting the tax rates, and collecting the taxes.
January 1 marks the beginning of property appraisal. What a property is used for on January 1, market conditions at that time, and who owns the property on that date determine whether the property is taxed, its value, qualifications for exemptions, and who is responsible for paying the tax.
Between January 1 and April 30, the appraisal district processes applications for tax exemptions, agricultural and timber appraisals, and other tax relief. Around May 15, the appraisal review board begins hearing protests from property owners who believe their property values are incorrect, or who feel they were improperly denied an exemption or agricultural/timber appraisal. The ARB is an independent panel of citizens responsible for handling protests about the appraisal district's work. When the ARB finishes its work, the chief appraiser gives each taxing unit a list of taxable property known as the appraisal roll.
Usually in September or October, the elected officials of each taxing unit adopt tax rates for their operations and debt payments. Typically, each property is taxed by several taxing units. For example, every property in Harris County is taxed by both the county and a school district. Taxes may also be payable to a city or special district, including such entities as municipal utility districts, rural fire protection districts, junior college districts, and others.
Tax collection starts in October and November as tax bills go out. Taxpayers have until January 31 of the following year to pay their taxes. On February 1, penalty and interest charges begin accumulating on most unpaid tax bills. Taxing units may start legal action to collect unpaid property taxes once they become delinquent.What is my (the taxpayer's) role?
You can play an effective role in the process if you know your rights, understand the remedies available to you, and fulfill your responsibilities as a property owner and taxpayer.
Know Your Rights:
Understand Your Remedies:
Fulfill Your Responsibilities:
How do I appoint an agent?
You may represent yourself in any property tax matter. Or, you may appoint a representative -- commonly called an "agent" -- to handle specific duties. You don't need an agent to file for exemptions, such as those available to homeowners, disabled veterans, and charitable or religious organizations -- just get an application form from the appraisal district.
To appoint an agent, you must give that person written authorization to represent you. You must use a special "Appointment of Agent" form available from the Harris County Appraisal District or State Comptroller's Office. No form is necessary if the person is your attorney, employee, or a person who is simply acting as a courier. With limited exceptions, agents who represent property owners for a fee must be licensed by the Texas Department of Licensing & Regulation in Austin.
The agent may represent you in one or more areas that you designate on the form: to file notices of protest, to present your case before the ARB, to negotiate on value disputes, to receive notices or tax bills, or to handle any other specific action. Or, the agent may represent you for general property tax purposes.
The special form asks for a date when your authorization to this person ends. If you don't give an ending date, the agent continues to represent you indefinitely until you file a statement with the appraisal district ending the appointment or you appoint a new agent.
By law, the appraisal district cannot recommend or refer you to a tax agent
How are the tax rates set?
Once the appraisal review board approves the appraisal records, the chief appraiser prepares and certifies an appraisal roll for each taxing unit. An appraisal roll lists the taxable property within the boundaries of the taxing unit.
In September or October of each year, the governing body of each taxing unit adopts a tax rate that, when applied to the total taxable value of all property within the unit's boundaries, produces a tax levy sufficient to meet the unit's budgeted revenue needs.
Information regarding the rate setting process is available in a pamphlet published by the State Comptroller of Public Accounts titled Texas Property Taxes: Taxpayers' Rights, Remedies & Responsibilities. Copies are available at no charge in your Appraisal District's office, as well as in most tax collection offices or you can click on the link above.
How are property taxes collected?
Taxing units usually mail their tax bills in October. The normal delinquency date is February 1, but may be later depending on when the tax bill is mailed. If February 1 is drawing near and you haven't received a tax bill for the prior year, contact your local tax offices. Find out how much tax you owe and make sure your correct name and address are on file with the appraisal district since the taxing unit obtains that information from the appraisal roll.
In any event, the law allows you at least 21 days to pay after a tax bill is mailed to you. If your bill is mailed after January 10, the delinquency date is postponed. You have until the first day of the next month that will provide at least 21 days for paying the bill. So, if the taxing unit mails your tax bill on January 15, your taxes don't become delinquent until March 1. The delinquency date is printed on the bill.
Regular penalty charges may be as high as 12 percent, depending on how long the tax remains unpaid. Interest is charged at the rate of 1 percent per month, and interest continues to accrue as long as the tax remains delinquent. There may also be an additional 15 percent penalty added if the taxing unit hires a private attorney to collect the delinquent taxes.
Texas law requires you to comply with tax payment requirements before delinquency if you plan to file motions with the appraisal review board alleging failure of the appraisal district or ARB to send you a required notice, if you file a pre-delinquency motion asking correction of a substantial error (an over appraisal of at least 1/3), or if you plan to appeal an appraisal review board determination to district court. In these instances, you must pay the amount of taxes due on the portion of the taxable value of the property that is not in dispute or the amount of taxes imposed on the property in the preceding year, whichever is greater; or the amount of taxes due on the property under the order from which the appeal is taken.
If you have any other questions feel free to call us at 713-658-8600 or email us at email@example.com