Property Tax Appeal:
Do it Yourself. Do it Right.

How does the state of Texas utilize my property tax money?

Do you own real property in the Lone Star State? If yes, like all other property owners, you must pay annual property taxes too. Local property tax is a type of Ad Valorem tax, which means these taxes are tied to the value of the piece of property you own. For tax purposes, every local government is required to carry out periodical property valuations to determine the assessed value of property. Property Ad Valorem taxes are levied by counties and schools on all property. All taxable property will pay county and school taxes. If the property is located inside a city’s boundaries, you also may have to pay city taxes. Special taxing units such as junior college, hospital district, road district and others may also tax your property.

How is the tax money you pay for property you own utilized?

Local property taxes are a major revenue source for local governments. The money collected is used to provide multiple public services. Property taxes are locally assessed, collected and used to support local entities. These include, but may not be limited to the following:

  • County and municipal governments - Employees pay, municipal infrastructure, land construction or improvements.
  • Resident services - Garbage pickup.
  • Educational services - schools.
  • Social services - Hospitals, public welfare.
  • Essentials - Water supply.
  • Public safety service providers - Law enforcement (police) first responders (Firefighters, Emergency Medical Technicians, paramedics, 911 dispatchers)
  • Recreational services provided by local government.

Property taxes are due upon the receipt of the tax notice and may be paid until January 31 without penalty. Once you have received your tax bill, understand it by knowing how the Tax Rate is determined and your property’s current assessed value.

If you feel like you are paying your local government too much money in property taxes, you may want to check whether you have claimed all property tax exemptions you and your property qualify for.

Wondering why your property tax bill is higher than your neighbor’s? Learn more here.

Property tax utilization in Texas

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Disclaimer

Articles presented here are for general information and education only. It is provided as a courtesy to the general public. SQD Taxtech LLC does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors or persons quoted as of the date of the article with no obligation to update or notify of inaccuracy or change. This article may not be reproduced, distributed or further published by any person without the written consent of SQD Taxtech LLC. Please cite source when quoting.

SQD Taxtech LLC, its managed affiliates and subsidiaries, as a matter of policy, do not give tax, accounting, regulatory or legal advice. Rules in the areas of law, tax, and accounting are subject to change and open to varying interpretations. You should consult with your other advisors on the tax, accounting and legal implications of actions you may take based on any strategies presented, taking into account your own particular circumstances.