Property Tax Delinquency Glossary
Here are some terms that you’ll most likely come across as you’re trying to settle your tax bill.
- Abatement A property tax incentive offered by towns, cities, or state and federal governments that can reduce or eliminate real estate taxes for the area in which you live. An abatement can cover a few months or extend over a number of years.
- Ad Valorem Tax A tax amount that’s based on the assessed value of your property.
- Appraisal District Each county in Texas has an independent office that determines the value of taxable property in the district. This office also creates a list of properties and their values within the area once this information is approved for county government, school districts, cities, and any other political units that impose property taxes. The area in which properties are appraised is known as the “appraisal district.”
- Appraisal Records A collection of appraised values for the year. These records are fairly detailed and reflect each property’s id number, appraised value, exemptions, owners and other relevant information
- Appraisal Review Board In the event that a property owner wants to dispute their appraised property taxes, the appraisal review board (ARB) will review the disagreement between the owner and the appraisal district. In larger taxing districts, the ARB is appointed by a local administrative district judge. In smaller districts, the ARB is established by the appraisal district’s board of directors.
- Assessed Value How much your property is worth in comparison to others around it. In determining this amount, any repairs or inspections are also factored in. The assessed value is then used to calculate your property taxes.
- Bill of Rights Under the law, the property values used to determine taxes must be equal and uniform. Local officials are also required to follow a specific process in arriving at these values, setting tax rates and even collecting taxes. The Property Taxpayers’ Bill of Rights can be viewed on the Texas Comptroller’s website.
- Chief Appraiser This position is responsible for running the appraisal office for your taxing district. This role is elected by the office’s board of directors.
- County Tax Assessor The person in this role determines how much tax a property owner has to pay. They arrive at this amount by performing an assessment that helps them formulate what is owed. During the assessment, they’ll determine the value of your property in one of three ways. From there, they will arrive at the payment amount.
- Exemption Exemptions can remove a percentage or dollar amount of your property’s taxation value (partial exemption), or exclude your property from taxation altogether (absolute exemption). Some exemptions are mandated by the state, while others can be offered at a local taxing authority’s discretion.
- Foreclosure Foreclosure is the end result of not being able to pay the tax lien on your property. When this happens, your property can be sold at a tax sale and the proceeds will go to your taxing district.
- Formal Hearing This occurs when you protest your property taxes and can’t come to an agreement with the tax assessor that you met with during your informal hearing (see below). You’ll then go before a review board of assessors who try to prove that your assessment was incorrect.
- Homestead Exemption A homestead exemption removes part of your home’s value during the valuation process to help lower your tax bill. To qualify for this exemption, your home must be a place of residence and not used for business purposes. It must also be your primary residence by January 1 of the tax year.
- Informal Hearing Should you decide to protest your property taxes, this is the first step of the process. You’ll meet with an appraiser and try to prove why the initial assessment of your property was incorrect. If you don’t see eye-to-eye, a formal hearing (see above) would be the next step.
- Judicial Appeal If you’re not satisfied with the appraisal review board’s decision from your formal hearing, you can then file a lawsuit or judicial appeal. This is done through the state district court.
- Market Value This is a property’s monetary value if it were sold under normal conditions, the seller and buyer knew the property’s full usage potential and neither party was pressured to carry out the transaction.
- Property Tax Loan A property tax loan makes it possible for you to settle your debt and get some delinquent property tax help. You can get one through a lender like Tax Ease, and then pay the loan amount back in a manner that meets your needs.
- Protest When you don’t believe that the market value of your property was fairly assessed, you can dispute it with your appraisal district. The process will start with an informal hearing.
- Taxing Entity This is any political unit or government entity that can enforce property taxes.
- Valuation This process involves estimating the current and future worth of your property.
Tax Ease Makes Paying Delinquent Property Taxes Easier
While there’s a lot to know about property taxes, one thing is certain. We can provide you delinquent property tax help so you can avoid penalties like fees and even foreclosure. You can apply for a property tax loan in minutes and get approval within 24 hours. Learn more about our property tax loan help today. And if you need further assistance with the application process, contact us.