Property Appraisal

in Texas

What property is appraised?

Land

Structures (also called “improvements”)

Personal property (FOR BUSINESSES ONLY)

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)

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

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

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

The Market

Approach

HOW IS YOUR PROPERTY APPRAISED?

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

The Cost

Approach

HOW IS YOUR PROPERTY APPRAISED?

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

The Income

Approach

HOW IS YOUR PROPERTY APPRAISED?

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

Agriculture

Use Land

HOW IS YOUR PROPERTY APPRAISED?

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

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)

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.

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 31 to protest

The notice of appraised value will give instructions on how to file a

protest

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.

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

www.banderaproptax.org

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