Texas Property Tax Flashcards
A compulsory contribution legally exacted from persons
Tax
A reduction in the local taxes levied on a property for a specific period of time.
Tax Abatement
The unit of value to which the tax rate is applied to determine the tax due.
Tax Base
Listing of important dates and deadlines in completing the annual property tax appraisal, equalization, assessment, and collection phase.
Tax Calendar
In property taxation is the total revenue that will be realized by a tax, not the mileage rate.
Tax Levy
A lien that is automatically attached to property in the amount of its unpaid property taxes
Tax Lien
The factor used to calculate the total tax for the property.
Tax Rate
A receipt showing the taxable value and amount of tax imposed by the unit of the property in one or more tax years.
Tax Receipt
A listing of all parcels of property within a taxing unit submitted from the appraisal district to the assessor/collector.
Tax Roll
The calendar year beginning on January 1 of each year.
Tax Year
The market, or appraised value, less any applicable exemptions.
Taxable Value
The right of government to raise revenue through assessments on valuable good, products, and rights.
Taxation
-A county, an incorporated city or town, a school district, a special district, or any other political unit of this state authorized to ad valorem taxes on property.
Taxing Unit
A concept embodied in the Texas Constitution that requires local taxing units to make taxpayers aware of tax rate proposals and to afford taxpayers the opportunity to roll back or limit tax increases. (Chapter 26).
Truth in Taxation
Unauthorized Practice of Law. (Chapter 1152)
UPL
A fiduciary relationship in which one party, the agent, act as a representative of other.
Agency
Form provided by the State Controller’s Office that stablishes the powers deleted to the agent
Appointment of Agent
Details of a specific parcel of property being appraised by the appraisal district that includes ownership, property description, applicable exemptions, market value, and jurisdictions
Appraisal Record
A listing of appraisal records, as change by order of the ARB
Appraisal Roll
Date on which a filling or payment incur penalty and/or interest
Delinquency Date
Reduction to property tax due for early payment
Discounts
A person in a position of trust, responsibility, and confidence for another
Fiduciary
Owned by one or more individuals, at least one of whom claims the property as the individual’s homestead
Heir Property (Real Property)
Abuilding, structure, fixture, or fence erected on or affixed to land; a transportable structure that is design to be occupied for residential or business purposes
Improvement
A notice must be sent certified mail on:
Denial or modification of an exemption
A taxing unity must elect to allow for split payments, with equal payments due before
December 1 and July 1
If an appraisal district agrees to keep taxpayer information confidential what section of the Texas Property Tax Code deals with confidential information not open for public inspection?
Section 22.27
An arm’s length transaction could also be defined as a
Market value transaction
Positive equity income is called
Dividends
The most accurate way to appraise a property’s fee simple market value is to use
Current market rental rates
What is going concerns?
The incremental value associated with intangibles of a business concerns
What is the best way to value land?
Recent comparable sales
A property subject to a triple net lease requires
The tenant to pays utilities, property taxes, insurance and property maintenance
The Chief Appraiser is entailed to appeal an ARB order determining protest except
If approved by each taxing unit with jurisdiction to tax the specific property
A delinquent tax incurs a penalty of
6% for the first calendar month it is delinquent plus 1% for each additional month or portion of a month it remains unpaid.
Cost Approach Method
Assumes value of improved property is value of site, plus the cost (New) to construct the improvements less any depreciation.
Value = Cost - Depreciation
Cost to bring it up new.
4 types of Cost estimating techniques
- Comparative Unit Method
- Unit in Place Method
- Quantity Survey Method
- Cost Index trending
Sales Comparison Method for Measuring Depreciation
Good when adequate data available. Must identify comparable properties with same defect as subject and comparable without defect. Difference in selling prices is amt of depreciation
Capitalization Method for measuring Depreciation
Similar to Sales Comparison in identifying comparables but for rental properties. Difference in income is capitalized for depreciation
URAR (Uniform Residential Appraisal Report)-4 info required
Has section for cost approach information
1.Estimated site value
2.Estimated reproduction costs
3.Total depreciation
4.Value of site improvements
Formula to find the Cap Rate
NOI(Net Operating Income)/SP(sales Price)=CR(Capitalization Rate)
Formula to find Indicated Value
NOI/CR=IV
The TPTC states that an application for agricultural use designation is due
Before May 1 (April 30)
Reasons to file a Rendition
If it is a Personal Property (PP) and have expenses it needs to be filed
How many days you have to filed an extension for a rendition
30 Days
When to protest?
May 15th or 30 days to protest from the date of notice value
What to report on Freeport Application an when?
Report only touching inventory and is due April 30th as well as Allocation
Reasons to appeal 25.25(d)
It has to be more than the third overmarket value.
What is the Arbitration time frame?
60 Days
Homestead
You only apply ones and don’t need to apply anymore
Refund Tax Money (Overpay money)
Need to be sent to the owner as certify check
Appraisal Boundaries
Is the same as County Boundaries
