“Ad valorem” is used frequently to refer to property values by county tax assessors (both real and personal property). Literally, ad valorem means “according to value.” In many states, there exists a central appraisal district that is responsible for establishing the value of real property. These districts send the established property values to the local county tax assessor, who determines the final tax rate to be imposed on the property. Other states use a state tax commission, which notifies the appropriate taxing authorities of the assessed value of property within their billing jurisdiction. Texas uses the central appraisal district model to establish ad valorem values.

The Texas Constitution provides the legal basis for tax assessment on real and personal property. Article 8 §1(b) of the Texas Constitution reads: “All real property and tangible personal property in this [Texas] State, unless exempt as required or permitted by this Constitution, whether owned by natural persons or corporations, other than municipal, shall be taxed in proportion to its value, which shall be ascertained as may be provided by law.”

Ad valorem sales tax is collected as a percentage of the item’s sale price. An example would be the state of Tennessee having a 6% sales tax on the purchase of food. Virtually all state and local taxes on restaurant meals and clothing are calculated ad valorem. Items like gasoline and tobacco products have additional taxes built in to the price that are of a specific amount pre-established by the government.

The common expression “county tax assessor” is a misnomer. Assessors do not tax nor do they assess a tax; the assessor's job is to value property (real estate, personal property, etc), so that officials described as tax assessors would more accurately be called property assessors. After a property’s value is determined by the assessor, a tax rate is determined by the appropriate taxing authority, which in turn calculates the tax due by the property owner. The tax is then collected by the tax collector.

Every year on January 1, a tax lien is established on real and personal property located in Texas. This lien exists not by virtue of a specific act of the taxing authorities, but by state constitutional right. Texas law provides a means and method to protest a particular ad valorem value. There are strict deadlines imposed on this process that must be followed or a property owner will waive his right to protest the value. Progressive Realty Solutions, LLC does not handle ad valorem value protests, only ad valorem tax foreclosure issues.

Serving clients in Houston, Southwest Houston, Sugar Land, West Houston, Memorial, River Oaks, Royal Oaks, Pearland, The Heights, Bay Area, Harris County, Fort Bend County, Brazoria County, and Galveston County.