Agricultural Exemption – An exemption may be granted on acreage no less than 5 acres if said property is used in the raising of livestock or growing of crops, fruits, flowers and other products of the soil under natural conditions as a business venture for profit. Property taxes should be protested annually to minimize any increase in property tax value and risk of rollback taxes.
Arbitration Hearing – customers may file an arbitration if they are not happy with the results obtained from the appraisal review board hearing. The arbitration is filed with the State Comptroller’s office, then an arbitrator is picked for a scheduled hearing. That decision becomes binding on both parties.
Bettencourt Tax Advisors, LLC (BTA) Appeal Summary – A proprietary market and equity report that presents the valuations of the subject and similar type properties to support a lower property tax value during the property tax protest process.
Bettencourt Tax Advisors, LLC (BTA) GIS Mapping – Proprietary Geographical Information System maps that present the subject and surrounding properties with values that support a lower property tax value.
Business Personal Property (BPP) – BPP is any property you own that is not real estate but is used for business purposes. It generally includes computers, equipment, fixtures, furniture, inventory, machinery, supplies, vehicles, and other items in your place of business or related to your business that are moveable without causing damage to itself or the associated real property. BPP is taxable at the same rate as real property in Texas.
Comparable Properties – Properties with similar characteristics to the subject property and adjusted for any dissimilarity/differences. This is more than just the location of the properties. Characteristics considered by the CAD can be age, style, size and more based on the type of property.
Cost Approach – This type of approach is one of the three techniques appraisers use to determine property tax market valuation. This approach involves estimating the depreciated cost of reproducing or replacing the building and site improvements.
County/Central Appraisal District (CAD) Evidence - Information provided by the appraisal district supporting their noticed market and equity property tax values.
Customer Evidence – Documents and photographs provided by the customer that may be used as evidence in the property tax protest process to support a lower property value. i.e. pictures of the property showing any type of negative influences or damages, estimates, invoices, construction costs, appraisals, etc.
Equity Value - One of two values the appraisal district calculates to use in its determination of a property’s appraised value. It is also known as Uniform and Equal and is calculated based on the value of comparable properties in the appraisal district’s system. The appraisal district must value and tax all property in an equal and uniform manner.
Freeport Exemption - Freeport Inventory Exemptions are granted under Section 11.251, Texas Tax Code and must be applied for annually by April 30th. This exemption applies to items in your inventory that (1) are or will be forwarded out of Texas within 175 days of the date you acquire them or bring them into Texas; (2) are in Texas for assembling, storing, manufacturing, repair, maintenance, processing, or fabricating purposes. The exemption does not apply to oil, natural gas, or liquids or gases that are immediate derivatives of refining oil or natural gas.
Highest and Best Use - Highest and Best Use for a property is that use which will produce the highest net return to land. The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, and financially feasible and that results in the highest value.
Manage Litigation Appeal – A customer may choose to file a lawsuit in state district court if they are not happy with the value determined by the appraisal review board (ARB). BTA's litigation team can assist our customers with managing their judicial appeal through a lawyer of their choice. See the Litigation and Arbitration tab for more information,
Market Value - One of two values the appraisal district calculates to use in its determination of a property’s appraised value. It is the price at which a property would transfer for cash or its equivalent under prevailing market conditions. There are three approaches that can be taken to determine Market Value based on the type of property: Income Approach, Cost Approach, Sales Approach. For Industrial properties the Cost Approach supported by the Sales Approach are typically used.
Rendition – A Rendition is a form that you use to report your Business Personal Property to your county appraisal district. The Texas State Property Tax Code requires business owners to file their renditions after January 1 and no later than April 15 every year. Failure to do so results in a 10% penalty.
Rollback Taxes - Rollback Taxes can be applied when the agricultural use changes. Agricultural use frequently changes upon the sale of a property. If the CAD drops a property’s agricultural use status, it will levy a tax of 5% for the past 3 years on the property owner.
Sales Approach – This type of approach is one of the three techniques appraisers use to determine property tax market value. This approach involves compiling available data on sales, sales offers, and property listing values of properties that are comparable to the property being appraised. These values are adjusted for any dissimilarity/differences. A value for the subject is then obtained by analysis of the comparable properties.
Uniform and Equal – The phrase ‘Uniform and Equal’ is interchangeable with ‘Equity Value’. The appraisal district must value and tax all property in an equal and uniform manner. This helps ensure that no single property or type of property pays more than its fair share of taxes.