For those new to Texas or unfamiliar with how our taxes work, we have a two legged stool to support government – sales and use taxes and property taxes. Sales and use taxes fund State government and property taxes fund local governments (county, city, school district, community colleges, drainage and emergency services districts, etc.). State agencies have a mechanism to obtain funding through the Legislature but local governments obtain funding through local elected officials with the consent of property owners. TNT or Truth in Taxation are the laws established to insure the process is transparent and that you have an opportunity to have input, particularly when property taxes increase.

Embodied in the Texas Constitution and the Tax Code, TNT requires property owners be notified if property values, government budgets and tax rates increase that affect your tax bill. Beginning with the notice from the county appraisal district (CAD) each spring, TNT requires specific actions by all local governments that tax. In Galveston County that is 64 of 65 active governments (Clear Lake Shores eliminated property taxes in 2008).

As stated, the first step occurs when appraisal notices are mailed (new owners and those whose property value will increase more than $1,000). Those were mailed and protests are underway at the CAD. Next, budgets are prepared – spending plans that will fund services for which you are the beneficiary. By July 25th, the CAD will have established the majority of the values and tax assessor collectors will begin calculating tax rates.

The next step occurs when notices are published in local newspapers and posted on government websites. This is your opportunity to evaluate the proposed spending plans. Those governments intending to generate additional revenue on the same properties as last year (this is what the effective tax rate establishes) will be required to hold public hearings on both budgets and tax rates. By the end of September (early October for governments with boundaries in Harris County), tax rates will have been adopted and tax offices will begin producing tax statements – often referred to in Galveston County as love letters from the Tax Assessor Collector.

You fit in the picture beginning with the appraisal notices. It is your right and responsibility to protest your property value. While governments are discussing budgets and tax rates, it is your right and responsibility to attend those meetings and speak up about government spending (and cuts) and finally, it is your responsibility to pay the bill so that you may continue to enjoy the services provided.

Truth in Taxation was created for you. Participate in the process. And if that love letter communicates a little too much love, get involved. Run for office, vote! That is one of the most important rights and responsibilities you have as a property owner and citizen of Texas.

Cheryl E. Johnson, RTA
Galveston County Tax Assessor Collector