Evaluating Texas Appraisal District Performance

Introduction

The Texas Constitution requires property taxation to be equal and uniform. This requirement means that the same standards should apply when assessing property values, and that similar properties should be taxed at comparable values. In addition, Texas law specifies that taxable property should be appraised at 100% of its market value, which is defined as “the price at which a property would transfer for cash or its equivalent under prevailing market conditions” on January 1 of each year. Generally, properties are taxed in proportion to their value, although the tax rates applied can vary across taxing jurisdictions. If taxpayers believe the market value of their property is incorrect, or the property is taxed at a higher value relative to comparable properties, they can file a protest with the appraisal district.

As a result, property appraisals by central appraisal districts (CADs) in Texas are critical cornerstones to sustain a robust property tax system. It is therefore essential to evaluate appraisal district performances to ensure they follow state guidelines.

One way to evaluate the accuracy and equity of property appraisals across a specific jurisdiction is to conduct a ratio study, or statistical analysis that compares the assessed value of properties to their actual market value. That is why the Texas Comptroller’s office, in accordance with Texas Tax Code §5.10, measures the uniformity and median level of appraisals performed by the state’s appraisal districts for major property categories every two years.

This report reviews available ratio study results from 2009 to 2024 for the five CADs covering the largest cities in Texas: Harris (Houston), Bexar (San Antonio), Dallas (Dallas), Travis (Austin), and Tarrant (Fort Worth). The results are then summarized to evaluate their relative performances.

View the full report (PDF).

This publication was produced on behalf of Rice University’s Baker Institute for Public Policy. Wherever feasible, this material was reviewed by external experts prior to release. Any errors are the responsibility of the author(s) alone.

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