Property Tax Administration
Many parties play a role in administering the property tax system, including property owners, appraisal districts, appraisal review boards, local taxing units, tax assessor-collectors and the Comptroller’s office.
Property Owner
The property owner, whether residential or business, pays taxes and has a reasonable expectation that the taxing authorities administer the taxing process fairly. The property owner is also referred to as the taxpayer.
Appraisal District
The appraisal district in each county is responsible for appraising the total market value of property each year. The appraisal district can answer questions about local appraisal processes, exemption administration, agricultural appraisal and the protest process. The appraisal district is administered
by a chief appraiser hired by the appraisal district board of directors.
Beginning July 1, 2024, the governance of the appraisal district and certain functions performed by the appraisal district board of directors are based on the population of the county in which the appraisal district is established. A county with a population of less than 75,000 is considered a less populous
county. A county with a population of 75,000 or more is considered a populous county.
Appraisal Review Board
The appraisal review board (ARB) is a board of local citizens that hears disagreements between property owners and the appraisal district about a property’s taxability and value.23 ARB members are appointed by the local administrative district judge in the county in which the appraisal district is located.24 Beginning July 1, 2024, the ARB member appointment process is based on the population of the
county in which the appraisal district is established. The local administrative district judge will continue to appoint ARB members in a less populous county.25 The appraisal district board of directors appoints ARB members in a populous county.
Taxpayer Liaison Officer
A taxpayer liaison officer (TLO) must be appointed by the appraisal district board of directors in counties with a population of more than 120,000. The TLO is the appraisal district officer primarily responsible for providing assistance to taxpayers for the district, administering public access functions, resolving disputes not involving matters that may be the subject of a protest and compiling a list of comments, complaints
and suggestions related to the fairness and efficiency of the ARB.
Local Taxing Units
Local taxing units, including school districts, counties, cities, junior colleges and special purpose districts, decide how much money they need to provide public services. Taxing units set property tax rates according to their budgets. Some taxing units have access to other revenue sources, such as a local sales tax. School districts must rely on local property tax and state and federal funds. Taxing units can answer
questions about tax rates and tax bills.
In many counties, taxing units contract with the county tax assessor-collector to collect property taxes for other taxing units in that county. The assessor-collector then transfers the appropriate amounts of tax collected to each taxing unit. Although some taxing units may contract with an appraisal district to collect taxes, the appraisal district does not levy a property tax.
Property Tax Assistance Division
PTAD’s role is primarily limited to monitoring services. At least once every two years, PTAD conducts a School District Property Value Study (SDPVS) for each school district for school funding purposes. The SDPVS is an independent estimate mandated by the Texas Legislature of property values within a school district. The Comptroller’s values do not directly affect local values or property taxes.
PTAD also performs Methods and Assistance Program (MAP) reviews of all appraisal districts every two years. The reviews address four issues:
- governance;
- taxpayer assistance;
- operating procedures; and
- appraisal standards, procedures and methodologies.
PTAD reviews approximately half of all appraisal districts each year. School districts located in counties that do not receive a MAP review in a tax year will be subject to an SDPVS the following year.
Information on this page taken from the Texas Comptroller of Public Accounts website
