Commercial – ARB Frequently Asked Questions

What is the appraisal district's role in the property tax system?

The appraisal district is responsible for determining the market value of taxable property as of January 1 each year. The appraisal district does not set tax rates, collect taxes, or determine how tax revenue is spent.

What is market value?

Market value is the price a property would sell for in an open-market transaction between a willing buyer and willing seller, with neither party under pressure to buy or sell.

How is my property's value determined?

Texas law requires appraisal districts to appraise property at its market value as of January 1 annually. For commercial properties, appraisers may consider:

• Recent sales of comparable properties
• Income and expense information
• Lease rates and occupancy levels
• Replacement cost of improvements
• Property condition and characteristics
• Current market trends

What appraisal methods are used for commercial properties?

Commercial properties may be appraised using one or more of the following approaches:

• Income Approach: Converts a property's income potential into value.
• Cost Approach: Estimates the cost to replace the improvements, less depreciation, plus land value.

The most appropriate method depends on the property type and available market data. Sales comparison approach is not directly used as an approach, however sales are analyzed and considered carefully when establishing other methods.

What is a capitalization rate?

A capitalization rate (cap rate) is used in the Income Approach to convert a property's net operating income into an estimate of value.

Generally: Value = Net Operating Income ÷ Capitalization Rate

Cap rates are developed from market data and vary by property type, quality, location, and investment risk.

If I recently purchased my property, will it automatically be appraised at the purchase price?

Not necessarily. A recent arm's-length sale is an important indicator of market value, but the appraisal district must consider all relevant market evidence when determining value.

Why did my value increase when I haven’t made any improvements?

Property values can increase due to:

• Rising market rents
• Increased occupancy levels
• Lower capitalization rates
• Appreciation in the local real estate market
• Increased demand for similar properties

Commercial properties are appraised based on market conditions, not solely on physical changes to the property.

Why is the appraisal district requesting my income and expense information?

Income-producing properties are often valued using the Income Approach. Accurate income and expense information helps appraisers:

• Analyze market performance
• Develop market-based income schedules
• Improve valuation accuracy

Texas law authorizes appraisal districts to request this information.

What happens if I do not provide requested income and expense information?

Failure to provide requested information may:

• Limit the evidence available for valuation review
• Affect the ability to challenge certain valuation issues during the protest process

When will I receive my Notice of Appraised Value?

Most property owners receive a Notice of Appraised Value in the spring, typically between April and May. The notice will show:

• Current year appraised value
• Prior year value
• Information on how to file a protest
• Protest deadlines

What if I disagree with my value?

You have the right to file a protest with the county's Appraisal Review Board (ARB).

Common reasons for protest include:

• Incorrect property characteristics
• Market value concerns
• Unequal appraisal compared to similar properties

What is the Appraisal Review Board (ARB)?

The ARB is an independent panel of local citizens responsible for hearing property owner protests and determining whether appraisal district values should be changed. The ARB is a[JR1]  separate entity from the appraisal district.

What is the protest deadline?

Generally, a protest must be filed by May 15, or 30 days after the Notice of Appraised Value is mailed, whichever date is later.

What information should I provide during a protest?

Helpful information may include:

• Recent property sale information
• Income and expense statements
• Rent rolls
• Vacancy data
• Deferred maintenance documentation
• Repair estimates
• Comparable property information
• Independent appraisals

The more specific and verifiable the information, the more useful it is during the review process.

Will filing a protest delay my tax bill?

No, tax bills are generally mailed in the fall after local taxing units adopt tax rates. If a protest remains unresolved, taxes may be calculated according to applicable Texas Tax Code provisions.

When are property taxes due?

Property taxes are generally due upon receipt of the tax bill and become delinquent after January 31 of the following year.

Who should I contact if I have questions?

For questions regarding:

• Property value
• Property characteristics
• Protest procedures
• Exemptions

Contact your county appraisal district. Bexar Central Appraisal District can be reached at:

411 N Frio St
PO Box 830248
San Antonio, TX 78283-0248
Phone: 210-242-2432
Fax: 210-242-2454 or 210-242-2453

For questions regarding:

• Tax rates
• Tax bills
• Payment plans
• Collections

Contact your county tax assessor-collector. The Bexar County Tax Assessor-Collector can be reached at:

Vista Verde Plaza Building
233 N. Pecos La Trinidad
PO Box 839950
San Antonio, TX 78283
Phone: 210-335-2251