Understanding Property Tax Laws for Texas Commercial Real EstateBy: Michel Gray Tax Team / July 14th, 2023
Understanding Texas commercial property tax laws is crucial to ensuring compliance and making strategic financial decisions. Here is an overview of the key elements of property tax law in Texas commercial real estate.
Basis for Property Taxation
Texas law mandates property taxes on real property (land and buildings) and personal property used for income production. Commercial properties are assessed based on their market value on January 1st each year.
Role of the Central Appraisal Districts
Each county in Texas has a Central Appraisal District (CAD) that is responsible for determining the value of all property in the county. This appraisal value forms the basis for calculating property taxes.
Appealing Property Appraisals
If a property owner disagrees with the CAD’s assessment, they have the right to file a protest with the Appraisal Review Board (ARB). Navigating the appeals process can be complex and may require the expertise of a Texas commercial property tax attorney.
Tax Rates and Exemptions
Local tax entities, including cities, counties, and school districts, determine the tax rate. Several exemptions and abatements may apply to commercial property owners, potentially reducing their property tax burden.
Tax Bills and Deadlines
Property tax bills in Texas are typically mailed in October and become delinquent if not paid by February 1st of the following year. Penalties and interest accrue on unpaid taxes, so timely payment is critical.
State and Local Tax Laws
Texas has a unique blend of state and local tax laws, requiring commercial property owners to keep up with both levels of legislation. This can include local exemptions, economic development programs, and other specific taxing district rules.
Get the Right Legal Help
Understanding and adhering to Texas commercial property tax laws can be daunting, especially given their complexity and frequent changes. If you need help navigating these laws, our Texas commercial property tax attorneys can provide valuable guidance and support.
Contact Texas Commercial Property Tax Attorneys at Michel Gray LLP
Our team of experienced attorneys is here to help you understand the nuances of Texas commercial property tax laws. Call us at (512) 866-8014 or send us a message to schedule an initial consultation today. We’re committed to helping you make informed decisions and to resolving your property tax issues efficiently.