Section 5.09 of the Property Tax Code directs the Comptroller to publish an annual report on the operations of the state’s appraisal districts. An appraisal district is a political subdivision of the state, authorized by law in each county of the state, responsible for appraising property in the district for use by taxing entities in setting their ad valorem tax rates. Many refer to appraisal districts as county appraisal districts or CADs.
The annual report includes the appraised value by class of property, the total taxable value for most taxing units, the tax levy and the tax rate for each county, school district and other taxing units in an appraisal district. Taxing units derive the tax rate by dividing the proposed levy by the taxable value of property and express it in dollars and cents per $100 of value. The assessor applies the rate to taxable value to compute a tax due on each property. Taxable value is a property’s appraised value minus all applicable exemptions and other deductions or limitations.
The Comptroller performs an annual property value study (PVS) that estimates the taxable wealth of each school district in Texas. The Texas Education Agency uses the PVS results to allocate state aid to school districts. Since 1983, the PVS has also evaluated the level and uniformity of appraisals by CADs, as required by Section 5.10 of the Property Tax Code.
The Property Tax Code charges the Comptroller with reviewing CADs’ performance and providing information and technical assistance to CAD boards of directors, appraisal review boards (ARBs), tax professionals and the public. An ARB is an appointed group of appraisal district residents that hear taxing unit challenges and taxpayer protests.
The ARB can also order corrections and approve appraisal records to create an equal and uniform appraisal roll for the taxing entities. An appraisal record lists each year’s taxable property in the appraisal district. The records show the property identification number, owners’ names, appraised value of each property, the value of any exemptions and other information. The appraisal records as reviewed and approved by the ARB, result in the appraisal roll. A CAD’s appraisal roll lists all properties within its boundaries. A taxing unit’s appraisal roll lists taxable properties and values within the unit’s boundaries.
This 2005 Annual Property Tax Report includes summaries of the findings of both the School and Appraisal Districts’ Property Value Study 2005 Final Findings and information from the 2005-2006 Appraisal District Operations Report.