A Brief History

Before 1979 the Texas Constitution required all property owners to pay property taxes. Exemptions were few, and with the exceptions of Government property, along with that belonging to churches, schools and other properties exempted by federal law, most other owners were taxed on the property including automobiles, household furniture, stocks, bonds and cash in the bank. Each tax agency in Texas could have its tax office if desired and tax offices proliferated with most cities, school districts and numerous special districts establishing independent offices.  Accordingly, Texas had over 3,000 separate tax offices, each following its standards and local practices. Properties were often listed on different taxing entities rolls at dramatically different appraised values and assessment ratios were also applied with no uniformity between entities.

In 1979 the 66th  Texas Legislature, reacting to a chronic and growing problem of inequitable and unfair taxation, passed new legislation in Senate Bill 621 requiring that a centralized agency is established in each county for the purpose of appraising property for ad valorem tax purposes. These organizations, called “Central Appraisal Districts” consolidated the appraisal function of all taxing units into one office in each county and were organized to ensure that property taxation was fair and equitable as well as accurate. The Central Appraisal District (CAD) appraises each property in the county. Individual taxing units use those values to calculate tax liabilities in their jurisdiction. Each CAD is headed by a chief appraiser who manages staff, prepares budgets, administers applications for exemptions and oversees the day-to-day district operations. The Tax Code prescribes appraisal standards and appeal procedures and ensures regular review of each appraisal district by a state agency.