Texas Property Tax Joint Procedures 6.025
Section 6.025 – Overlapping Appraisal Districts; Joint Procedures
Two or more appraisal districts assess some property owners. This is commonly referred to as “share CAD” or overlap property. It occurs when one or more of the tax entities taxing the property straddles two or more counties. When this occurs, the tax entity can select the appraisal district that assesses property it taxes.
Until 2003, there was no requirement to reconcile property tax assessments involving two appraisal districts. This situation created angst among property owners who had inconsistent property tax assessments and had to attend property tax protest hearings in two counties. Even after attending property tax hearings at two county appraisal districts, property owners often had different assessed values at each appraisal district.
The Texas legislature amended section 6.025 of the Texas Property Tax Code in 2003 to resolve this issue. Any “shared CAD” appraisal district must now adopt an assessed value at a “share CAD” appraisal district whether it is a noticed value hearing or the result of a judicial appeal.
Property owners can appeal in just one or all of the appraisal districts. For example, a property owner with a property assessed by three appraisal districts could protest in all three appraisal districts. After all three protest hearings have occurred, the property owner can require the other appraisal districts to match the lowest assessed value. Many property owners now appeal at one appraisal district and obtain a matching value from the share CAD.
Taxpayers can achieve the lowest assessed value by appealing in each appraised district and requiring the share CADs to match. However, they should also weight the possible additional savings versus the additional time for a second property tax hearing.
Sec. 6.025. Overlapping Appraisal Districts; Joint Procedures.
(a) The chief appraisers of two or more appraisal districts that have boundaries that include any part of the same territory shall enter into a written understanding that, with respect to the property located in the territory in which each of the districts has appraisal jurisdiction:
(1) permits each appraiser to have access to and use information appropriate to appraisals, including a record of an exemption application, rendition, or other property owner report;
(2) eliminates differences in the information in appraisal records of the districts, including information relating to ownership of property, the description of property, and the physical characteristics of property; and
(3) contains the form of a written advisory prescribed by the comptroller informing the owners of property that reports and other documents required of the owners must be filed with or sent to each appraisal district and that the owners should consider sending any other document relating to the property to each appraisal district.
(b) The advisory described by Subsection (a)(3) may be sent to a property owner having property appraised by each district when the notice of appraised value required by Section 25.19(a) is sent.
(c) The chief appraisers of appraisal districts described by Subsection (a) shall to the extent practicable coordinate their appraisal activities so as to encourage and facilitate the appraisal of the same property appraised by each district at the same value.
(d) If on May 1 all the chief appraisers of the appraisal districts described by Subsection (a) in which a parcel or item of property is located are not in agreement as to the appraised or market value of the property, on that date each of the chief appraisers shall enter as the appraised or market value of the property on the appraisal records of the appropriate appraisal district the lowest appraised or market value of the property as determined by any of the chief appraisers. If as a result of a protest, appeal, or other action the appraised or market value of the property is subsequently reduced in any of the appraisal districts, the chief appraiser shall notify each of the appraisal districts of the reduced appraised or market value. The chief appraiser of each appraisal district shall enter that reduced appraised or market value on the appraisal records as the appraised or market value of the property. If the appraised or market value is reduced in more than one appraisal district, each chief appraiser shall enter the lowest of those values on the appraisal records.
Added by Acts 1995, 74th Leg., ch. 186, § 1, eff. Jan. 1, 1996. Amended by Acts 1997, 75th Leg., ch. 1357, § 1, eff. Jan. 1, 1998; Acts 1999, 76th Leg., ch. 250, §§ 1, 2, eff. Jan. 1, 2000; Acts 2003, 78th Leg., ch. 455, § 1, eff. Jan. 1, 2004; Acts 2003, 78th Leg., ch. 1041, § 1(a), eff. Jan. 1, 2004.
Appraisals generally, see Sec. 23.01.
Appraisal card requirements, see Rule Sec. 9.3001.
Appraisal records of all property, see Rule Sec. 9.3004.
Appraisal records form and content, see Sec. 25.02.
Confidential information on renditions, see Sec. 22.27.
Exemption application requirements, see Sec. 11.43.
Homestead exemptions, see Sec. 11.13.
Notice of appraised value, see Sec. 25.19.
Property description, see Sec. 25.03.
Property identification system, see Rule Sec. 9.3014.
Property protest, see Sec. 41.41.
Protest to district court, see Sec. 42.01.
Uniform tax records system, see Rule Sec. 9.3002.
Section 6.025(d) of the Texas Tax Code does not as a matter of law violate article VIII, section1(a) or (b) of the Texas Constitution nor does it violate article VIII, section 18(c) which provides that the legislature is to establish a single appraisal review board for an appraisal district and that the appraisal review board members reside in the appraisal district. Op. Tex. Att’y Gen.-GA 0317 (2005).
Section 6.025(d) is to be construed to require chief appraisers in overlapping appraisal districts to enter in the tax records both the lowest market value and the lowest appraised value. Op. Tex. Att’y Gen. GA-0283 (2004).
An appraisal district board may not contract with another board to designate a single appraisal review board to hear taxpayer protests about the appraisal of property located in areas common to both districts. Owners of “overlapping properties” may choose which of two or more review boards will hear their protest. A contract cannot impair the validity or force of any law, nor control the provisions of a statute. Letter Op. Tex. Att’y Gen. No. DM-98-022 (1998).
These codes affect property owners across the state, in both larger and smaller cities including:
- China Grove
- Old Ocean
- Lakewood Village
- Pelican Bay
- Blue Mound
- La Marque
- Balcones Heights
- Meadows Place
- Oak Point
The Texas Property Tax Code applies to all property types in Texas including:
- Auto dealer
- Commercial building
- Fast food restaurant
- Night club
- Regional mall
- Power center
- Lumber storage
- Nursing home
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