Property taxes are local taxes. Local officials value your property, set your tax rates, and collect your taxes. State law governs how this process works. The property tax is an ad valorem tax. Ad valorem is a Latin phrase which means according to value. The tax is based on the value of the property. For example the property tax on land valued at $10, 000 will be ten times higher than land valued at $1,000.

There are four main parts to the property tax system. The appraisal district values property, administers exemptions, and maintains current ownership information on the appraisal records. The appraisal review board is a panel made up of people from the local community. They are independent from the appraisal district. They settle any disagreements between the appraisal district and the property owner about the valuation of the property. The governing bodies of the taxing units, such as the city councils, school boards, or county commissioners decide the annual budgets and set the tax rates. This determines the total amount of taxes to be paid. The tax office calculates the levy, mails the statements, collects the taxes and distributes the tax revenue to the taxing units.

Property taxes are determined by what a property is used for on January 1, market conditions at the time and ownership of property on that date. A tax lien attaches to property on January 1 to secure payment of taxes for the year.

Property taxes are a major source of funding for local services. They help pay for public schools, community health services, fire and police protection, streets, roads, flood control projects, and many other services.

All property is taxable unless state or federal law exempts all or part of the value. Total exemptions may be granted for public properties or those owned by qualifying organizations such as churches, schools, or charitable organizations. Homestead, over sixty-five, and disabled veterans exemptions are examples of partial exemptions, which reduce the taxable value on qualifying property.

Tax Rates