Market value, appraised value, ARB, exemptions and the homestead cap are some of the concepts that recur most often when appraisal notices arrive. Understanding these terms helps decide whether it’s worth filing a protest and how to do so within the official deadline.
Each spring, thousands of homeowners in Houston receive their value notice and run into language that isn’t always clear. The system has several stages and divides responsibilities among the appraisal district, the Appraisal Review Board (ARB), and the tax-collecting entities. In Harris County, the general deadline to protest is May 15 or 30 days after the date the notice was sent, whichever is later.
The first point to fix in mind is this: the appraisal district does not set the tax rate. Its job is to determine the property’s value; afterwards, cities, counties, school districts, and other local entities decide how much to collect. Harris CAD summarizes the process in four stages: taxable property valuation, protests, rate adoption, and collection.
Market value is the starting point for almost every protest
Market value or the market value is the base value of the property for system purposes. According to Fort Bend CAD, all taxable property in Texas must be valued at 100% of its market value as of January 1 of each year. That calculation relies on recent sales and comparisons with similar homes.
That figure is usually the focal point of the discussion when a property owner protests. If someone believes their home was valued higher than what it would realistically fetch in a typical sale, that’s where the argument begins. In practice, districts work with comparables, also known as comps, and adjust for differences in size, location, condition, or improvements.
The appraised value does not always match market value
Another term that often causes confusion is the appraised value. In properties with a homestead exemption, Fort Bend CAD explains that that value can be limited by the homestead cap, which restricts the annual increase to 10% over the assessed value of the previous year, plus the value of any new improvements if there were any.
Therefore, in rising markets, market value and the assessed value can diverge. A house may have a higher market value but still have a lower appraised value due to the cap. That limit does not take effect immediately in all cases: Fort Bend CAD indicates it applies starting January 1 of the year following the year in which the property qualified for the exemption.
Exemptions reduce the portion of value that ends up taxed
Exemptions also shift the final number used to calculate the bill. The Texas Comptroller’s Office notes that exemptions can exclude all or part of a property’s value from tax. Among the most common are the homestead exemption and additional exemptions for seniors 65 and older, people with disabilities, and certain disabled veterans.
That means not every value is taxed the same way. The notice can show more than one figure, and not all serve the same function. The confusion between values, exemptions, and annual caps is one of the reasons many homeowners arrive late or ill-prepared at the protest stage.
The appraisal district and the ARB are not the same
In the Houston area, Harris CAD and Fort Bend CAD are responsible for determining values, processing exemptions, and receiving protests. By contrast, the Appraisal Review Board, or ARB, is an independent panel of citizens that hears disputes between property owners and appraisal districts and makes a decision for that fiscal year.
The Texas Comptroller describes the ARB as a group of citizens authorized to resolve disputes between property owners and appraisal districts. Its members are locally appointed, and its decisions are binding only for the fiscal year in question. Hearings usually take place between May and July.
The protest can start online and end in a formal hearing
Filing a protest is the formal step to challenge the assigned value or to point out errors in the file, including the lack of an exemption. Harris CAD allows it online through its electronic system, and once the account is created, the owner can file the protest, receive communications, and access iSettle. Fort Bend CAD also offers an option to file an appeal online, in addition to mailing or presenting in person.
If the case is not resolved early, it proceeds to a formal hearing before the ARB. The Texas Comptroller explains that at that stage the owner and the appraisal district’s representative present their evidence and the panel decides. It also reminds that if someone is not satisfied with the ARB’s resolution, there are additional appeal options depending on the type of property and the case.
The May 15 deadline remains the date most worth keeping in mind
For most homeowners, the date that matters is May 15, unless the notice was sent later or the 30-day period ends up broader. Harris CAD also notes that if the required notice was not sent before April 15, the deadline runs 30 days after the date printed on the value notice.
Before filing a protest, districts recommend gathering concrete property data: photos, repair estimates, surveys, closing documents, and other evidence to support the value the owner believes is correct. Fort Bend CAD includes that recommendation in its protest tips, and Harris CAD maintains online access for those who prefer to start the process digitally.
