Texas Property Tax Consultant Practice Exam

Under what condition is property taxable by a taxing unit?

1. If located within their jurisdiction on January 1

2. If used occasionally in their jurisdiction during the previous year

3. If the appraisal district estimates the market value using the sales comparison approach

4. If the value was determined by the ARB

The correct answer is: If located within their jurisdiction on January 1

Property is taxable by a taxing unit if it is located within their jurisdiction on January 1. This date is crucial because it marks the beginning of the tax year in Texas, and property ownership status is determined at that specific point in time. If a property is situated within the geographical boundaries of a taxing unit, that unit has the authority to levy taxes on it. The significance of January 1 lies in its role as the assessment date, which indicates that all properties existing within the taxing unit's borders are considered for taxation. The status of the property as of this date is foundational for establishing tax liability, ensuring a consistent and uniform approach to property taxation across the state. The other options focus on varying conditions and methods for property valuation or usage that do not inherently establish taxability. The occasional use of a property within a taxing unit does not affect its tax status unless it meets the criteria of being present within the jurisdiction on the assessment date, while valuation approaches and determinations made by the Appraisal Review Board (ARB) are concerned with how much tax is owed rather than whether the tax is applicable at all.