Property Value Study and Self Reports
The primary purpose of the PVS is to help ensure equitable distribution of state funding for public education. Government Code Section 403.302 requires the Comptroller's office to conduct a study to determine the total taxable value of all property in each school district at least once every two years. The Comptroller's Property Tax Assistance Division (PTAD) conducts the property value study (PVS) to estimate a school district's taxable property value. The results of the PVS can affect a school district's state funding. The Commissioner of Education uses the PVS results to ensure equitable distribution of education funds so school districts have roughly the same number of dollars to spend per student, regardless of the school district's property wealth.
The secondary purpose of the PVS is to collect data to provide taxpayers, school districts, appraisal districts and the Legislature with measures of appraisal district performance. Tax Code Section 5.10 requires the Comptroller's office to measure appraisal district performance at least once every two years and to publish the results. PTAD measures the level and uniformity of property tax appraisals using data collected in the school district PVS.
The Property Value Study and How to Protest presents an overview of the PVS, provides information regarding the PVS procedures and provides guidance on considering and preparing a protest of the PVS preliminary findings of taxable value.
Government Code Section 403.302(m-1) creates the Property Value Study Advisory Committee (PVSAC) and prescribes how members of the committee are appointed. The Comptroller adopts rules governing the PVS and the Methods and Assistance Program MAP after consulting with the PVSAC.
The Electronic Appraisal Roll Submission requires appraisal districts to provide appraisal roll information in a standard electronic format. TheElectronic Appraisal Roll Submission (PDF, 889KB) provides information and guidance to appraisal districts for submitting electronic data in the appropriate format.
Tax Code Section 5.07(c) requires appraisal districts to maintain property sales information collected as part of their uniform record keeping systems. They are required to submit the data to the Comptroller's office, where it is compiled into a statewide database.
In order to ensure uniformity in the data among all appraisal districts, PTAD requires that all property transfers be submitted electronically in a prescribed format. The submissions will be due each year in February and August.
Electronic Property Transaction Submission Manual (PDF 500KB) presents an overview of the prescribed electronic format, provides information regarding the submission procedures, and provides to appraisal districts submitting sales information.
The Comptroller's office gathers data to develop agricultural productivity values for the property value study. A major source of information for the Property Tax Assistance Division is the annual Farm and Ranch Survey.
The Comptroller’s office relies upon the Manual for Discounting Oil and Gas Income to conduct oil and gas property appraisals used in the PVS. This manual provides the methods and procedures to calculate the present value of oil and gas properties using discounted future income; specifies the formula to be used in computing the limit on the price used in the second through the sixth year of an appraisal; and is adopted by the Texas Comptroller of Public Accounts under Comptroller Rule 9.4031 as required by Tax Code Section 23.175
As part of the PVS, the Comptroller’s office calculates a range of discount rates used to discount the projected future income of oil and gas produced from individual properties. The Discount Rate Range for Oil & Gas Properties summarizes the methodology for the discount rate range determination.
|Year||Property Value Study Results|
The law allows school districts, authorized appraisal districts, eligible property owners and their agents to protest the PVS preliminary findings. A petition protesting the Comptroller’s preliminary PVS findings must be filed within 40 calendar days after the date the Comptroller’s office certifies preliminary findings of taxable value to the Commissioner of Education. The petition is required to include three parts: Part A, Part B and Part C, and is subject to dismissal if any of the three parts are not submitted by the deadline.
The Comptroller’s office offers the following resources to assist those interested in pursuing the protest process:
- The Property Value Study and How to Protest; and
- How to Protest Property Value Study Results (video).
Both resources provide guidance on how to properly prepare and submit a complete petition package. Links for instructions for completing the petition and for each of the petition parts can be found in the box to the right.
Government Code Section 403.302(h) and Comptroller Rule 9.103 allow the Comptroller's office to audit the total taxable value of property in a school district and to revise the property value study (PVS) findings based on the audit findings. The audit request must come from the commissioner of education or a school district and is limited to corrections and changes in a school district's appraisal roll that occurred after preliminary certification of the Comptroller's PVS findings.
The audit request must be filed with the Comptroller's office not later than the third anniversary of the date of the final certification of the PVS findings and not later than the first anniversary of the date the chief appraiser certifies a change to the appraisal roll if:
- the chief appraiser corrects the appraisal roll under Tax Code Section 25.25 or 42.41; and
- the change results in a material reduction in the total taxable value of property in the school district.
The Comptroller's office certifies the audit findings to the commissioner of education.