What does an appraisal district do?

In 1979, the Texas Legislature passed Senate Bill 621—commonly known as “the Peveto Bill”—which created a single appraisal district in each Texas county. These appraisal districts are political subdivisions of the state and serve as the first step in the property tax process.

 

Appraisal districts are responsible for:

• Identifying and listing all taxable property in the county
• Determining market value as of January 1 each year using standard appraisal practices
• Administering exemptions and special valuations (e.g., homestead or agricultural)
• Certifying the final property values by the end of July to local taxing units

Important: Appraisal districts do not tax, do not set tax rates, and do not collect taxes. Each year, Notices of Appraised Value are sent to new property owners and to those whose property value has increased by $1,000 or more from the previous year. If a property owner disagrees with the appraised value, they (or their authorized agent) may file a Notice of Protest with the Appraisal Review Board by May 15 or within 30 days of the notice being mailed—whichever is later.

What are property taxes?

Property taxes are local taxes based on the appraised value of your property. They fund essential public services such as:

• Public schools
• Police and fire departments
• Road maintenance
• Hospitals and emergency services
• Community colleges

The amount you pay depends on your property's value and the tax rate set by your local taxing units, not by the appraisal district.

How does the property value set by the appraisal district affect property taxes?

Your taxable value is calculated based on:

• Market Value – what the property would sell for in an open market
• Appraised Value – as determined by the appraisal district
• Taxable Value – the appraised value minus any exemptions

Here’s how the full process works:

1. January – April: Appraisal districts determine property values.
2. By May 15: Property owners can protest their value.
3. End of July: Final values are certified and sent to local taxing units.
4. August – September: Local taxing units adopt tax rates and budgets.
5. October: The County Tax Assessor-Collector calculates and sends out property tax bills.

Reminder: While the appraisal district sets your property’s value, only your local governments set tax rates and send the bills.

What is a taxing unit?

A taxing unit is a local government entity that imposes property taxes. Examples include:

• Counties
• Cities and towns
• Independent school districts
• Hospital districts
• Community college districts
• Emergency service and utility districts

Each taxing unit:

• Sets its own tax rate
• Uses the appraisal district’s certified values to calculate how much tax is due

Still have questions?

We’re here to help. Visit our Help Center at https://help.bcad.org/ or contact us at 210-242-2432 for additional assistance with:

• Understanding your appraised value
• Filing a protest
• Navigating the property tax timeline