Texas Property Taxpayers' Rights, Remedies, Responsibilities

Five Constitutional Rules


The Texas Constitution sets out five rules for the property tax.

1. Taxation must be equal and uniform. All property must be valued and taxed equally and uniformly. This applies to similar types of property (for example, all residential homes) and to differing types of property (for example, commercial properties and utility properties). No single property or type of properties should pay more than its fair share of taxes.

2. With some exceptions, all tangible property must be taxed on its current market value. The exceptions include agricultural land and timberland. A property's market value is the price for which it would sell when both buyer and seller want the best price and neither one is under pressure to buy or sell. Land used for farming and ranching can be valued on its capacity to produce crops or livestock, instead of its value on the real estate market. This appraisal is known as agricultural appraisal. Special timberland appraisal is also available to property owners whose land produces timber for products.

3. All property is taxable unless a federal or state law provides an exemption for it. An exemption excludes all or part of a property's value from taxation.

4. Property owners have a right to reasonable notice of increases in appraised property value.

5. Each property in a county must have one appraised value. The Legislature may provide for exceptions for a property that is part of a governmental unit, such as a school district, whose boundaries cross county lines.

http://www.window.state.tx.us/taxinfo/proptax/tx96_295/basics.html