If a taxpayer’s property value increased in the last year, the Texas taxpayer will receive a notice of appraised value from the appropriate local county appraisal district. The city, county, school districts and other local taxing units will use the appraisal district’s value to set property taxes for the coming year.
Property tax remedies
This comptroller publication explains in detail how to protest a property appraisal, what issues the county appraisal review board (ARB) can consider and what to expect during a protest hearing. The publication also discusses the option of taking a taxpayer’s case to district court or entering into binding arbitration if the taxpayer is dissatisfied with the outcome of the ARB hearing.
A homestead is generally defined as the home and land used as the owner’s principal residence on January 1 of the tax year. A homestead exemption reduces the appraised value of the home and, as a result, lowers property taxes. Applications are submitted to the appropriate local county appraisal district.
Property owners who use their land for agricultural purpose or wildlife management can be granted property tax relief on their land. They may apply to their local county appraisal district for an agricultural appraisal which may result in lower appraisal of the land based on how much the taxpayer produces, versus what the land would sell for in the open market.
Residence homestead tax deferral
Texas homeowners may postpone paying the currently delinquent taxes due on the appreciating value of their homes by filing a tax deferral affidavit at their local county appraisal district. This tax relief allows homeowners to pay the property taxes on 105 percent of the preceding year’s appraised value of their homestead, plus the taxes on any new improvements to the homestead. The remaining taxes are postponed, but not cancelled, with interest accruing at 8 percent per year.