Central Appraisal District (CAD)

Central Appraisal District (CAD)

The Central Appraisal District (CAD) is a local government entity established to determine the market value of properties within a specific jurisdiction for the purpose of tax assessment. CADs aim to provide a standardized valuation method, resulting in fair and consistent property assessments across various taxing entities such as cities, counties, and school districts.

The primary responsibilities of a CAD include:

• Assessing the value of all taxable property within the jurisdiction.
• Maintaining up-to-date property records.
• Disseminating appraisal findings to property owners and taxing entities.
• Addressing taxpayer questions and disputes regarding valuations.

Examples

1. Example 1: Residential Property Valuation

   • A homeowner in Texas receives an annual property assessment notice from the local CAD. The notice details the appraised market value of the home, on which property taxes will be calculated. The CAD conducts periodic inspections and market analysis to update these appraisals.

2. Example 2: Tax Allocation

   • In a county-level jurisdiction, the CAD appraises a commercial property. Based on the appraised value, the CAD calculates the total tax amount and then allocates it to the relevant entities—city, county, and school district—each according to their specified tax rate.

Frequently Asked Questions (FAQs)

Q: How often does the Central Appraisal District reappraise properties?
A: Most CADs perform property reappraisals annually, but the frequency may vary based on local regulations and the state of the real estate market.

Q: Can property owners contest the appraised value?
A: Yes, property owners can file a protest with the CAD if they believe their property’s appraised value is incorrect. The CAD typically has an established process for handling such disputes.

Q: Does the CAD set the tax rate for properties?
A: No, the CAD does not set tax rates. It only provides property valuations. Individual taxing entities (cities, counties, school districts) set their own tax rates based on their budgetary needs.

Q: Are CAD appraisals used for any purposes other than tax assessments?
A: Primarily, CAD appraisals serve tax assessment purposes. However, these valuations can indirectly influence lending decisions, insurance assessments, and property market analysis.

Related Terms with Definitions

• Assessed Value: The dollar value assigned to a property by the CAD for taxation purposes.
• Tax Rate: The amount of tax payable per unit of property value, determined by the taxing entity.
• Property Tax: An annual tax levied on real estate by local government entities, based on the assessed value.
• Appeal Process: A formal procedure through which property owners can contest the appraised value of their property.

Online Resources

1. Texas Comptroller’s Property Tax Assistance Division
2. National Association of Appraisers
3. International Association of Assessing Officers (IAAO)

References

1. Texas Property Tax Code, Chapter 23, “Appraisal Methods and Procedures.”
2. International Association of Assessing Officers (IAAO) Standards on Valuation of Property (assessed value guides).

Suggested Books for Further Studies

1. “Property Assessment Valuation” by Jeffrey A. Johnson
   • A comprehensive guide covering principles and practices related to the valuation of real estate properties for tax purposes.
2. “Understanding Property Tax Evasion: Insights, Experiences and Perspectives” by Robert W. Johnson
   • A critical analysis of property tax assessments, evasion issues, and related economic implications.
3. “Annual Property Tax Compliance Planning” by Thomas J. McGah
   • This book focuses on navigating property tax laws, compliance processes, and effective planning strategies to mitigate tax liabilities.

Real Estate Basics: Central Appraisal District (CAD) Fundamentals Quiz