Property tax glossary

Every term you will hear in a property tax appeal, defined in plain English. Use it as a reference while you build your packet.

Ad valorem tax: A tax levied as a percentage of assessed value. Property tax is the most common ad valorem tax.
Appraisal district: The county-level office that determines market value for every parcel. Known as CAD in Texas.
Appraisal review board (ARB): The independent panel that hears formal property tax protests in Texas.
Arms-length sale: A sale between unrelated parties acting in their own interest. The only sale type boards count as comp evidence.
Assessed value: Market value adjusted for caps (e.g. 10% in Texas, 3% in Florida under Save Our Homes). The base before exemptions.
Binding arbitration: A low-cost post-board appeal route in Texas with a refundable deposit, faster than district court.
Cap (assessment limitation): A statutory ceiling on annual growth in assessed value for primary residences.
Certified roll: The final tax roll the appraisal district sends to taxing units, typically in July or August.
Comparable sales (comps): Recent arms-length sales of similar properties used to value the subject home.
Condition class: The district's grade for a property's overall condition; one of the highest-leverage fields on the record card.
Effective tax rate: Annual tax divided by market value. Useful for comparing burden across counties.
Equity appeal: An appeal based on uniformity — your assessment is higher per sqft than comparable properties.
Exemption: A dollar amount removed from assessed value before the tax rate is applied (e.g. homestead, over-65, disability).
Fair market value: The price a willing buyer would pay a willing seller in an open transaction.
Homestead exemption: An exemption available on a primary residence. Texas: $100,000 school. Florida: $25,000 plus second $25,000.
Informal hearing: A one-on-one meeting with a district appraiser before any formal board hearing.
Just value: Florida's constitutional term for fair market value under Art. VII § 4.
Mass appraisal: The district's statistical model that values thousands of parcels at once. The source of most assessment errors.
Median price per square foot: The middle value of a set of comp $/sqft figures. The number boards anchor on.
Millage rate: A tax rate expressed in thousandths of a dollar per dollar of value. One mill is $1 per $1,000.
Notice of appraised value: The annual notice from the district stating your proposed market and assessed value. Triggers the protest deadline.
Parcel ID: The unique identifier the district uses for your property; required on every protest form.
Property record card: The district's data sheet on your parcel: sqft, year built, features, condition. Check this for errors first.
Protest: The Texas term for a property tax appeal. Filed with the appraisal district.
Save Our Homes: Florida's constitutional 3% cap on annual assessed-value growth for homesteaded property.
SOAH: State Office of Administrative Hearings; one Texas appeal route after the ARB for higher-value properties.
Taxable value: Assessed value minus exemptions. The number the tax rate is applied to.
Taxing unit: A government entity that levies property tax (school district, county, city, hospital district).
TRIM notice: Florida's Truth-in-Millage notice. Includes proposed rates and the deadline to file with the VAB.
Unequal appraisal: Texas statutory ground for relief when the median assessment of comparable properties is below the subject's.
VAB (Value Adjustment Board): Florida's independent panel that hears property tax appeals at the county level.

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