July 25: Certification Day for Appraisal Districts

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July 25: Certification Day for Appraisal Districts

July 25 is another key date in the property tax calendar. On this day, appraisal districts certify the appraisal roll, finalizing the appraised values for at least 95% of the tax base by value within their jurisdiction. This certification process is critical in ensuring the property tax process remains orderly, transparent, and legally compliant. The certified appraisal roll serves as the official record for property tax purposes and calculates the property taxes owed by each property owner.

Accurate certification is crucial for maintaining public trust in the property tax system and ensuring that all properties are assessed fairly. This blog delves into certification and its implications for property owners and taxing units, highlighting the importance of this milestone for strategic financial planning, accurate budgeting, and community funding. Understanding this process can help property owners and businesses prepare effectively and optimize their financial strategies.

What is the Certification of the Appraisal Roll?
Certification of the appraisal roll is the process by which appraisal districts confirm and submit the final appraised values of all properties to the taxing units. This certified roll includes all taxable properties and their respective values and serves as the official record for property tax purposes. Keep in mind that larger districts sometimes have problems meeting this deadline. If by July 20 the appraisal review board for an appraisal district has not approved the appraisal records as required under Section 41.12, the chief appraiser must, no later than July 25, prepare and certify to the assessor for each taxing unit participating in the district an estimate of the taxable value of property in that taxing unit.

The Certification Process

1. Resolution of Disputes:
Before certification, at least 95% of the tax base by value must be resolved, and the ARBs approve the appraisal records.

2. Final Review:
The appraisal district reviews the appraisal records to ensure accuracy and completeness.

3. Submission to Taxing Units:
On July 25, the appraisal district submits the certified appraisal roll to the taxing units, such as counties, cities, school districts, and special districts.

Importance of Certification

1. Foundation for Tax Calculations:
The certified appraisal roll is the foundation for calculating property taxes. Taxing units use these values to determine the total taxable value of properties within their jurisdiction.

2. Budgeting and Tax Rate Setting:
The certified values are crucial for taxing units to plan their budgets and set property tax rates. Accurate and timely certification ensures that taxing units can meet their financial obligations.

3. Transparency and Accountability:
Certification provides transparency and accountability in the property tax process, ensuring property owners are taxed based on accurate and verified values.

4. Financial Planning for Businesses:
Certified values are essential for accurate financial planning and budgeting for businesses. This helps forecast tax liabilities and manage cash flow effectively.

What Property Owners Should Do After Certification
1. Review Certified Values:
Property owners should review the certified appraisal roll to ensure their appraised value is correct. If there are discrepancies, they should be addressed promptly.

2. Plan for Tax Payments:
Property owners can plan their upcoming tax payments based on the certified values. This may involve budgeting for the tax obligation and exploring available tax relief programs.

3. Strategic Planning:
Businesses should consider strategic planning based on the certified values. This could include assessing the impact on their financials and exploring potential tax-saving strategies.

4. Leverage Professional Assistance:
Engaging with property tax consultants or legal experts can help property owners navigate any post-certification issues and identify opportunities for tax savings.

5. Monitor for Changes:
Stay vigilant for any changes or updates from the taxing units regarding tax rates or payment schedules. Being proactive can help avoid surprises and ensure timely payments.

Conclusion
The certification of the appraisal roll on July 25 is a critical step in the property tax assessment process. Understanding this process and its implications can help property owners ensure their property values are accurate and plan effectively for their tax obligations. This date marks a key point for strategic financial planning and optimizing business tax liabilities.

For property owners, certified values provide a definitive basis for assessing their financial responsibilities, allowing them to budget accurately and avoid unexpected tax burdens. This milestone offers business leaders—CEOs, COOs, CFOs, and Tax Managers—an opportunity to review and refine their tax strategies, ensuring that they leverage all available deductions and credits to minimize liabilities.

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