1. Texas Property Tax Basics
Bill King
BillKingHouston.com
June 2007

2. Property Tax Participants
Appraisal District
Appraisal Review Board (ARB)
Local Taxing Units
The Taxpayer
Appraisal District – Sets the value of your property each year
Appraisal Review Board (ARB) – Hears taxpayer value and ownership challenges
Local Taxing Units – Establishes tax rates to be applied to appraised values
The Taxpayer -- Pays taxes and files protests

3. Tax Calendar Appraisal – January 1 through April 30
Protests – May 15 - July 25
Tax Bills – Mailed October/November
Taxes go Delinquent – February 1
Delinquent Taxes to Attorney – July 1

4. Taxpayer Protest Process
Notice of appraised value and exemptions – by May 15th
File protest – DEADLINE – MAY 31
Appear at ARB Hearing when scheduled
May use an agent

5. Items a Taxpayer May Protest
“Any action of the chief appraiser, appraisal district, or ARB that applies to and adversely affects the property owner.”
Appraised value
Unequal appraisal
Inclusion on the tax roles
Denial of exemptions
Determination of ownership
Failure to send required notices
Specifically …
Appraised value of the property
Unequal appraisal between properties
Inclusion on the tax roles
Denial of partial or whole exemptions
Determination of ownership
Failure of the ARB or the Appraisal District to send required notices

6. Exemption Types Homestead Over 65 Disabled Disabled Veteran
Homestead - – Granted if the property is your primary residence and you lived there on January 1st
Over Granted if you or your spouse is over 65 (pro rata allocation)
Disabled -- Granted if you meet the Tax Code definitions of disabled (essentially, unable to engage in any substantial gainful activity and/or blind)
One can only claim an Over 65 or a Disabled, but not both, even if they would be eligible for both as they are defined … for most jurisdictions, the exemption for O65 and Disabled are the same amount

7. Exemptions = Big Savings
With Exemptions
Without Exemptions
Appraised Value
$100,000
$15,000 ISD Homestead Exemption
<15,000>
20% Optional Exemption
<20,000>
Taxable Value
65,000
100,000
Property Taxes Owed
$1,950
$3,000
Property Taxes Owed if Also Had an Over-65 Exemption
$ 742

8. Other Over 65 Features Tax Ceilings Installment Payments Tax Deferral
Spousal Death Benefit
Tax Ceilings – When an Over 65 exemption is granted, the level of taxes for School Districts is frozen at the dollar amount the taxes were in the year the person became 65
Installment Payments – Eligible to make four quarterly payments of the current year’s taxes; payments must be dated prior to the last day of January, March, May and July
Tax Deferral – Allows an Over 65 taxpayer to postpone payment of their property taxes as long as they own the property and live in it. Unpaid taxes do accrue interest at 8% per annum
If the Over 65 spouse dies, the remaining spouse qualifies for the Over 65 Exemption and Tax Ceilings if they are over 55 and live in the home

9. Past Due Payments Are Expensive
Penalties, Interest & Fees
Feb 7%
Mar 9%
Apr
11%
May
13%
Jun
15%
Jul
33% to 38%
After Jul
1% per month
Statements mailed in October or November
Delinquent on February 1
Interest & Penalty after January 31
Goes to Attorney on July
Additional fee of 15% - 20%.

10. Important to Know
Jurisdictions cannot forgive taxes – the State Constitution requires all taxes, penalties and interest to be collected

11. Payment Arrangements Tax Office – Must be before July 1
Penalty and Interest is still due, but if paid as agreed, no attorneys’ fees charged
You can usually also enter a Payment Agreement with the law firm representing a jurisdiction for delinquent taxes
This requires
a down payment,
no delinquent taxes other than the current year,
payments for no more than six months

12. Tax Foreclosures
If you do not pay, ultimately property will be sold in foreclosure sale
Significant additional costs
Can redeem property – 25%-50% premium