Texas Property Tax

Property taxes have long history and these are local taxes that are imposed on local level by counties, cities and special purpose jurisdictions. In the U.S. property taxes are not imposed on federal level and the rates depend solely on the property’s fair market value that is appraised annually.

Property taxes in many states are the source of funding for local schools and colleges and streets as well as police and fire services maintenance. There are also many other services that are funded from the property tax money.

There is no state property tax in Texas. There are no federal taxes either; thus all property taxes collected in the state are imposed and further managed by local governments and are spent directly to local needs.

Property taxes are collected by local authorities in accordance with Texas laws. Local governments and jurisdictions appraise and set tax rates as well as collect tax and it is also in their power only to settle any property-concerned disputes.

Texas Property Tax Facts

As of the data for the year 2012, the median value Texan home of $125,800 is worth $2,275 a year in terms of the median property taxes. The average rate of property tax collected in Texas counties equals 1.81% in accordance with the fair market value assessment of the property for the aforementioned year.

Texas property rates are among the highest in the country, being inferior only to 13 states that charge even more. It also occupies the 12th place among all the states in the U.S. with the highest rates for property with regards to median income.

Property taxes can be imposed by several jurisdictions with regards to one and the same property; thus tax rates differ greatly depending on the location of the property.

Texas Property Tax Calculation and Assessment

In Texas more than 3,900 local governments collect and spend taxes. They are counties and cities as well as school and special districts.

In accordance with the Texas laws property can be subject to several taxes imposed by a number of local governments. It is in the right of counties and school districts to tax all the property in their jurisdiction that is considered non-exempt. As a result, one item of property can be taxed by a number of local governments apart from counties and school districts as cities, water districts, colleges and etc. can add to it.

The tax rate is set by the local government each year after the appraisal of property fair market value.

Texas property tax system consists of the following compounds:

  • The property owner, or a taxpayer, is the one in charge of paying tax for the property owned. It is either a person or a business.
  • Under the term of an appraisal district is understood the jurisdiction that under the supervision of a chief appraiser carries out the assessment of all property value annually.
  • ARB, or an appraisal review board, represents a board of local citizens. Their function is to hear and resolve the disputes between property owners and appraisal districts in cases when disagreements arise around the property value fair appraisal.
  • In the majority of counties the county tax assessor-collector collects all the property taxes on behalf of all tax units.

Taxes for property in Texas are estimated with regards to the assessed fair market value that is multiplied by the total combined rate set by taxing units.

Texas property tax system presupposes property appraisal that starts at the beginning of each calendar year and goes on up to May when dealing with property owners takes place and cases of protests or re-evaluation are dealt with. In autumn local tax units get the data and set tax rates in accordance and in October 1 all property owners get their tax bills with the amounts of tax they are supposed to pay. This should be done by December 31 as it is the last day of the tax year and January 1 is already the first day of a new tax year.

Texas Property Tax Rates

Property tax in Texas is collected on local level and each county and city uses their own ways of property appraisal. Besides, with the property market value changing each year, it is impossible to have one solid tax for entire property units in Texas. However, the median figures look pretty much like this for the year 2012.

Texas Property Tax Due Dates

In accordance with the Texas laws, property taxes are supposed to be repaid by a taxpayer on or before December 31 in one single installment.

For more information about Texas property tax filing and repayment visit the site of the Texas Comptroller’s office.