Property Tax Appraisal Process
Ever wonder how the appraisal district gets their appraised value?
HOW THE HOME APPRAISAL PROCESS WORKS
There are several factors that play a role in how homes are appraised each year and how homeowners are taxed on them.
MASS APPRAISAL
In January, appraisal districts–which are entities of the state–begin determining market values of homes across their respective counties. However, most appraisal districts do not individually appraise every home. Instead, they use a process called mass appraisal, which considers several factors, including: •
- Nearby home sales
- Size and condition of property as of Jan. 1
- Amenities, such as pools and garages
APPRAISED VALUE VS. MARKET VALUE
The district determines a home’s market value, but for those with homestead exemptions, their homes are taxed at the appraised value, which cannot increase more than 10% each year.
If someone buys a home valued at $100,000 with a homestead exemption, and that home’s market value increases to $125,000 the next year, the home would be taxed at the appraised value of $110,000.
PROTESTS AND PAYMENT
1. Homeowners begin receiving property value notices in April.
2. They have until May 15 or 30 days after the notice is received to file a protest.
3. Appraisal districts review protests through appraisal review boards, although some offer informal hearings.
4. Taxing entities determine tax rates no later than Sept. 30. 5. Tax bills are mailed in October, and payments are due Feb. 1.
SOURCE: JACK BARNETT, HARRIS COUNTY APPRAISAL DISTRICT/COMMUNITY IMPACT NEWSPAPER
