What Does The Texas State Constitution Say About Property Assessment Uniformity And Tax Equity?
6/28/2021

In the state of Texas, every property tax owner is required to pay property tax. The state has repealed state property taxes, leaving property owners to pay just local property taxes. Several local governments, including school districts, cities, counties, and special districts such as hospitals, junior colleges, and water districts, may tax your land. Property taxes are collected and used by nearly 4,100 local governments in Texas. Taxes are used to pay local schools, roads, police, and fire protection, among other things.

What Does The Texas State Constitution Say About Property Assessment Uniformity And Tax Equity?

The Constitution of the State of Texas is the document that establishes the structure and function of the government of the U.S. state of Texas, and enumerates the basic rights of the citizens of Texas. Property tax assessments in Texas is governed by the standards stipulated by the Constitution of the state of Texas.

Constitutional Standards?

The Texas Constitution stipulates five property tax standards. 

  • Taxation must be equal and uniform. All property must be valued and taxed in an equal and uniform manner. This provision is a fairness standard that helps ensure that no single property or type of property pays more than its fair share of taxes. 

  • With certain exceptions, all tangible property must be taxed at its market value on January 1. Exceptions include certain agriculture; timber; and recreation, parks, and scenic sites that require special evaluation. The market value of a real estate is the price at which it will sell when both buyers and sellers want the best price and neither party is under pressure to buy or sell. 

  • Unless exempted by federal or state law, all property is taxable. The exemption excludes all or part of the value of the property from taxation.

  • Property owners have a right to reasonable notice of increases in appraised property values.

  • Each property in a given appraisal district must have one appraised value. An appraisal district's boundaries generally follow the boundaries of the county in which it is located.

The Texas Tax Code, which is part of the State Constitution, governs property taxes in Texas. Sec. 23.01. (b) says -

"The market value of the real property shall be determined using generally accepted appraisal methods and techniques."

If the appraisal district uses mass appraisal standards to determine the appraised value of a property, the mass appraisal standards must comply with the Uniform Standards of Professional Appraisal Practice. Appraising the same or similar types of property requires the use of the same or similar appraisal methods and techniques. However, each property must be appraised based on the individual characteristics that affect the property's market value, and all available evidence that is specific to the property's value must be considered in determining the property's market value.

The law requiring equity and uniformity is what allows every property owner to challenge the annual property tax bill based on comparable properties.

Is There A Homestead Exemption In The Texas Constitution?

All residence homesteads of married or unmarried persons, male or female, including those living alone, shall be free from all taxation for all State purposes up to $3,000 in assessed taxable value.

Who Is In Charge Of Property Taxes In Texas?

The Texas Legislature is in charge of property taxes in the state. They make the rules that govern the property tax system. Every two years, legislators have the chance to improve the process. County appraisal districts (CADs) and tax assessor-collectors are two other participants.

In Texas, How Are Property Taxes Calculated?

They are determined using the overall property value as well as the total revenue requirement. Property taxes in Texas are calculated as a percentage of the appraised value of each home. If your total tax rate is 1.5 percent and your home is worth $100,000, you will incur $1,500 in property taxes per year.

What Is The Property Tax Code In Texas?

The Texas Property Tax Code (TPTC) regulates assessment, taxation, exemptions, appeals, hearing processes for Texas property tax appeals, judicial appeals for Texas property taxes, timely payment of Texas property taxes, and penalties for late payment of Texas property taxes.The TPTC applies to all Texas counties and does not differ from one to the next. Each county has an appraisal district that determines the market value (assessed value) of the county's real and personal property.

What Are Texas's Property Tax Laws?

There is no state property tax in Texas.

Local governments are authorised to collect the tax under the Texas Constitution and statutory law.

The state has no authority to determine tax rates, collect taxes, or resolve disputes between you and your local governments.