The tax code is the size of a large phone book and is definitely a dry read. Additionally, it’s confusing. Calculating your commercial property tax can be difficult, but after reading this you will have a good grasp on how to calculate your commercial property tax.

The basic calculation is the taxable value multiplied by the tax rate. Now let’s take a look at how taxes are calculated and how tax rates are determined.

How are my taxes calculated?

Your property is taxed by the taxing entities, cities, schools, counties and special tax districts. They calculate the amount you owe, and then send you the bill. In order to calculate the taxes correctly, you will need to know the value of the property in question. The Dallas Central Appraisal District determines the value of your property. The value they come up with is used by the taxing entities to determine the tax you owe. Each entity multiplies the taxable value by their tax rate.

How are tax rates determined?

For each entity to determine their tax rate they first determine how many, and what services they will provide in the coming year and how much revenue is needed to provide those services. The taxing entity then takes the revenue or income needed and divides it by the taxable value to calculate the tax rate that is adopted by the taxing unit’s governing body. This is how the taxing entities establish the tax rate needed to raise enough tax dollars to fund their budget. “Truth in Taxation” laws determine how much this tax can be.

A great resource for more information on calculating your commercial taxes is the Dallas Central Appraisal District. You may want to Google them and use their free tax estimator software as well.

When are my taxes due?

The due date will vary from one entity to another, but most will send a bill out around October 1, and give you until January 31 to pay it. Taxes become delinquent on February 1. However, if an entity sends its bill after January 10, the bill becomes delinquent the first day of the next month.

There you have it in a nutshell. If you have further questions, you may want to contact either the Dallas Central Appraisers District directly or call an appraiser in your area. I recommend calling the appraiser that did your last appraisal.

Good luck and happy calculating.