What is A Central Appraisal District?
The Central Appraisal District’s Role
In Texas, Central Appraisal Districts (CADs) are in charge of determining market value for both real and personal property within their jurisdictions. They generally release these values to the public and their taxpayers at some point around May each year. These values are pivotal in the functioning of a county because they will be the basis for establishing the upcoming year’s tax rates that will help fund county and municipal functions for the next year. Despite the appearance of this role, it is important for taxpayers to understand that their local CAD does not set or control tax rates. Moreover, the CAD does not collect taxes or issue tax bills. Their sole job in the taxing process of a county is to set taxable values on taxpayers’ properties.
CAD’s Role in the Appeal Process
An important part of the CAD’s function in government is working with taxpayers each year to establish accurate values for property taxation. This is achieved when taxpayers appeal their noticed value sent by their local CAD. Once filed, these appeals can primarily end in one of three different ways; 1) the taxpayer ultimately withdraws their protest, 2) the CAD and taxpayer settle on a value for the property, or 3) the CAD and taxpayer can not agree on a value and must go to an appraisal review board to determine the value of the property. Following these appeals, the CAD will finalize any changed values into the tax roll.
CAD’s Role after Appeal Process
After the appeal season concludes, the CAD’s valuation cycle begins again for the following year. The CAD office will start collecting data on the market and start to shape its mass appraisal methodology. If you have any questions about the CAD’s role in determining your multifamily property value, please reach out to one of our Texas multifamily specialists for answers and guidance.
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