Property Appraisal in Texas

Transcription

1 Property Appraisal in Texas

2 What property is appraised? Land Structures (also called improvements ) Personal property (FOR BUSINESSES ONLY)

3 What gives value to land? Size (Price per acre or square foot) Land use (residential, business, industry, farming, ranching, wildlife) Utility improvements (water, sewer, electric) View (water or hill country) Waterfront Highway frontage Business centers Popular neighborhoods (supply and demand)

4 What gives value to structures? Structures like your home are also called improvements and add value to the land Includes business buildings, houses, strip centers, shopping malls, sports facilities, mobile homes, sheds, barns, storage facilities, hunting cabins, and everything with an overhead roof Improvements also include race tracks, pools, tennis courts, parking lots, decks, docks, skeet ranges, Does not include moveable property like motor homes and travel trailers unless used for business

5 What is business personal property? Furniture, fixtures, and equipment needed for operating the business Includes desks, computers, chairs, furniture, printers, copy machines, bookshelves, shop tools, work benches, company vehicles Parking lot lighting, business signage, asphalt or concrete parking lots Leased equipment used by businesses in the county is appraised in the name of the owner of the equipment

6 Valuing Property Property valued by county appraisal district There are three approaches to valuing property Market (property compared to similar property sales prices) Cost (what did it cost to build?) Income (used for investment property) Homeowners Exemption limits value increases to 10% per year

7 HOW IS YOUR PROPERTY APPRAISED? The Market Approach

8 How is your property valued? Market value is what your property would sell for on January 1st Your property is compared to recent sales of properties of similar use, location, construction quality, size, and condition We research and verify sales in the county and develop a schedule for each class of property But if there are no comparable sales We estimate the cost to build the structure at today s costs and then depreciate the structure to the condition it is in today

9 HOW IS YOUR PROPERTY APPRAISED? The Cost Approach

10 How is your property valued? The cost approach is used if we do not have comparable sales for your property We estimate the cost per square foot to replace the improvements with improvements of equal utility. If the property is not new then depreciation is estimated and subtracted from the replacement cost value

11 HOW IS YOUR PROPERTY APPRAISED? The Income Approach

12 How is your property valued? The income approach is used for investment property which generates rental income. Examples include apartments, hotels Special agriculture appraisals are based on the income approach What would an investor pay in anticipation of income from the property? This approach converts the future income into a value

13 HOW IS YOUR PROPERTY APPRAISED? Agriculture Use Land

14 Special Agriculture Appraisal (the Ag Exemption) The Ag Valuation (sometimes incorrectly referred to as an ag exemption) is a special income type appraisal It is based on land productivity with allowances for certain costs Productivity is based on soil quality, crop or livestock produced, and acreage in productive use Production level of intensity must meet county standards Must be in productive use for 5 out of the past 7 years Special consideration for drought with written request

15 Wildlife Management Appraisals Land used to manage wildlife may qualify for special ag use appraisal Land must have previously qualified for the Ag exemption Wildlife appraisals require Initial wildlife management plan (available from Texas Parks and Wildlife) Annual wildlife management report (Texas Parks and Wildlife Department)

16 Agricultural Land That No Longer Receives An Agricultural Valuation Land that is no longer receiving the Agricultural Valuation will be subject to a rollback This happens when a property changes uses from an agricultural use to a different use such as developed into a subdivision or into a commercial use Also when a property is no longer being used for agricultural or wildlife, even though it has not been developed can also trigger a rollback The exception to this will happen if we are in a drought period when stocking rates are lower or all livestock has been removed.

17 What If Your Property Value Rises? A notice of appraised value will be sent to you to show the increase in your property value This notice must be sent by April 1 of each year on residence homestead and by May 1 on all other properties or as soon thereafter as possible. Should you disagree with the value on your notice, you have 30 days from the date on your notice or until May 15 to protest The notice of appraised value will give instructions on how to file a protest

18 What Is A Rendition? There are two types of renditions. Both are used to report value on property. The first type is a real property rendition, which is used to give your opinion of value on your home and land. The second type is for business personal property, which is used to give your opinion of value on any furniture, fixtures or other items used in your business. This rendition must be filed every year. Both renditions will identify the location of the property and are due to the Appraisal District between Jan. 1 and April 15 of each year.

19 Additional Information Should you have any questions concerning any information in this power point, please feel free to ask. We also have additional information on our website which is