Appraisal districts in Texas are responsible for estimating the monetary value of all real estate in a given county, for the purpose of assessing property taxes on each property.
An appraisal district is a political subdivision, or local government, of the State of Texas. Appraisal districts share the same boundaries as counties, with one located in each county. However, an appraisal district is governed by its own board of directors, and is not part of the county government.
Relationship to Local Governments
Appraisal districts work in conjunction with other local governing bodies to assess property taxes on their behalf, including school districts, cities, and counties.
Prior to 1979, each taxing authority could have its own tax office. Properties within the same area could be taxed at different values by different tax offices having overlapping jurisdiction. The system was confusing and inequitable.
The Legislature passed a new law that required each county to have a single, centralized agency to assess property taxes. For this reason appraisal districts today are still referred to as “central appraisal districts”—because they centralize the tax work of a variety of entities.
Organization and Governance
Each Central Appraisal District is headed by a chief appraiser who manages staff, prepares budgets, handles applications for exemptions, and oversees the day-to-day district operations.
Appraisal districts in Texas are each governed by a board of directors. The members of the board are appointed by the taxing units within the county. They are not elected.
Taxing units—including counties, cities, school districts, and junior colleges—select directors in the fall of odd-numbered years.
The voting share of each taxing unit in the appraisal district is determined by the taxing unit’s share of the total dollar amount of property taxes imposed in the district.
The method or procedure for appointing members can be changed by the board of directors or by three-fourths of the voting taxing units acting through resolutions.
By default, each appraisal district has five board members, though this can be increased to 13.
Taxpayer Protests
Property owners may protest decisions of their Appraisal District to the local Appraisal Review Board (ARB). The role of the ARB is to settled disagreements between citizens and the county appraisal district concerning the value and taxability of their property.
Decisions of the ARB may be appealed further to a state district court, an independent arbitrator, or the State Office of Administrative Hearings.
Standards and procedures of each appraisal district also are subject to review by the Texas Comptroller of Public Accounts.
