Every year you pay property taxes based on the assessed value of your home by the county tax assessor collector’s office, but many home and property owners aren’t sure how this value is determined. In some cases, the assessed value is the same amount you paid for your home, but in most cases the assessed value will be more or less than the initial purchase price of your home. So, how does the tax assessor collector’s office come up with this new value each year? Keep reading to learn more about the process.
The assessment Process
Between January and June each year, the county tax assessor collector will take time to assess the value of your property based on the following factors:
- Property descriptors – this includes the number of bedrooms and bathrooms, square footage, size of property, etc.
- Local comparable sales – value is really only what someone would pay for your home, so this is taken into consideration by comparing your home to others in the area that have recently been purchased.
- Adjustment formula – assessors look at the comparable sales and use a formula to adjust the value of your home. For instance, if your home has one less bedroom but one additional bathroom than a home that was recently sold, the formula will adequately adjust property value to reflect these differences.
- Additional variables – issues with plumbing, HVAC, foundation, etc. may not be apparent from the outside (or even an interior home tour in some cases). This makes it more difficult to create a 100% accurate estimated property value. Depending on your county, a full property reassessment may be requested as frequently as every other year.
How Assessment Impacts Property Tax Bills
Once your property’s value is assessed, the assessor collector then takes into consideration all of your exemptions (homestead, energy incentives, etc.). Then, the adjusted value of the home is multiplied by the year’s tax rate for your county. For this reason, it’s very important that your home or property be accurately assessed and valued to ensure you are not paying taxes for a higher amount than the property is worth, which is why counties allow property owners the right to protest their assessment.
Right to Protest Assessment
The first step to protesting the assessed value of your home is to take your concerns before the Appraisal Review Board (ARB). If you’re unhappy with their findings, you can further protest before the state district court in the county in which your property is located, to an independent arbitrator, or to the State Office of Administrative Hearings (SOAH). These protests must be filed by May 15th or within 30 days of receiving the appraisal letter, whichever date is later.
How Home Tax Solutions Helps
If the appraised value of your home means a property tax bill higher than you budgeted for, we can help. At Home Tax Solutions, we offer low interest loans to help home and business owners pay off their property taxes without worrying about hefty late fees and penalties. If you’re ready to learn more, call one of our five office locations serving all 254 Texas Counties, or complete our fast, secure application today.