Glossary

This glossary provides clear definitions of key terms homeowners need to navigate property taxes, exemptions, and protests.

General Property Tax Terms

  1. Ad Valorem Tax: A tax based on the assessed value of real estate or personal property.
  2. Appraisal District: A local government entity responsible for determining the market value of properties within its jurisdiction.
  3. Appraised Value: The value assigned to a property by the appraisal district for tax purposes.
  4. Assessed Value: The portion of the appraised value used to calculate property taxes after exemptions are applied.
  5. Market Value: The estimated amount a property would sell for on the open market as of January 1 of the tax year.
  6. Property Valuation Notice: A document sent by the appraisal district to notify homeowners of their property’s assessed market value for the upcoming tax year. It typically includes information about exemptions, deadlines for protests, and prior-year values.
  7. Tax Rate: The rate set by local taxing entities, expressed as a percentage or per $100 of assessed value, used to calculate property taxes.

Exemptions and Reliefs

  1. Exemption: A reduction in the taxable value of a property that lowers the property tax bill. Common exemptions include the homestead exemption, over-65 exemption, and disabled veteran exemption.
  2. Homestead Exemption: A tax exemption for a homeowner’s primary residence, reducing the taxable value of the property by $100,000 for school district taxes as of January 1, 2023. To qualify, the property must be the owner’s primary residence, and an application must be submitted to the local appraisal district.
  3. Over-65 Exemption: An additional tax exemption available to homeowners aged 65 or older. This exemption provides further reductions on school district taxes and freezes those taxes at current levels.
  4. Disabled Person Exemption: A tax exemption for homeowners with qualifying disabilities, reducing their taxable value and freezing school district taxes.
  5. Disabled Veteran Exemption: A property tax exemption for veterans with service-related disabilities, ranging from $5,000 to a full exemption based on the veteran’s disability rating.

Taxing Authorities and Processes

  1. Taxing Unit: A local government entity, such as a school district, city, or county, authorized to levy property taxes.
  2. No-New-Revenue Tax Rate: The tax rate that would generate the same revenue as the previous year, excluding revenue from new construction.
  3. Rollback Tax Rate: The maximum rate a taxing unit can adopt without voter approval.

Property Tax Protesting Terms

  1. Tax Protest: A formal challenge to the appraised value or assessment of your property, submitted to the appraisal district or ARB.
  2. Tax Appeal: The process of challenging a decision made by the Appraisal Review Board, often through district court or binding arbitration.
  3. Appraisal Review Board (ARB): A panel of impartial citizens that hears property tax protests and decides whether to adjust appraised values.
  4. Comparable Sales (Comps): Recent sales of similar properties in the same area used to support claims of overvaluation.
  5. Evidence: Documentation provided by a property owner to support a protest, such as photos, repair estimates, or sales data.
  6. Informal Hearing: A meeting between the property owner (or their representative) and an appraisal district representative to negotiate a reduced value before a formal ARB hearing.
  7. Formal Hearing: A scheduled presentation of evidence before the ARB to dispute the appraised value of a property.
  8. Binding Arbitration: A method of appealing an ARB decision by hiring an independent arbitrator to review the case and issue a binding ruling.

Special Circumstances

  1. Deferred Maintenance: Unaddressed property issues, such as peeling paint or outdated systems, that can lower market value.
  2. Damage Evidence: Proof of property damage (e.g., photos, inspection reports, repair estimates) used to justify a reduced appraisal.
  3. Agricultural Valuation (Ag Valuation): A special appraisal for properties primarily used for agricultural purposes, based on productivity rather than market value.

Billing and Payments

  1. Tax Bill: An invoice sent by a taxing unit showing the amount of property taxes owed.
  2. Payment Deadline: The date by which property taxes must be paid, typically January 31 of the following year.
  3. Penalty and Interest: Additional charges applied to unpaid property taxes after the payment deadline.

Slash-Tax Specific Terms

  1. Tax Savings Estimate: An estimate provided by Slash-Tax showing the potential reduction in a property tax bill through protest.
  2. Representative Authorization: The process of designating Slash-Tax as the property owner’s representative for tax protests.
  3. Evidence Portal: The online platform where homeowners upload photos, repair estimates, and documents to support their protest.
  4. Protest Timeline: The schedule of steps and deadlines Slash-Tax follows to file and complete a property tax protest.
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