Texas Property Tax Consultant Practice Exam

What authority does the ARB possess?

1. Subpoena witnesses, records and financial documents of a business

2. Terminate the employment of the chief appraiser

3. Select the person who will represent the district at a hearing

4. Set tax rates for taxing entities within the county they serve

The correct answer is: Subpoena witnesses, records and financial documents of a business

The Appraisal Review Board (ARB) possesses the authority to subpoena witnesses, records, and financial documents of a business to ensure a thorough review of property values and tax assessments. This power is essential as it allows the ARB to obtain necessary information that may influence their decisions on contested appraisals, helping to ensure transparency and fairness in the assessment process. The ability to compel witnesses to testify and documents to be submitted helps the ARB in gathering evidence and verifying claims made by taxpayers or appraisal districts during their hearings. This authority is critical for maintaining the integrity of the property tax system and ensuring that all parties have access to relevant information to support their cases. In contrast, other options do not fall within the specific purview of the ARB. For instance, terminating the employment of the chief appraiser or selecting representatives for a hearing pertains to administrative functions typically handled by the governing bodies of appraisal districts or other officials. Additionally, setting tax rates for taxing entities is under the authority of local governments and their boards rather than the ARB.