Ad Valorem Tax

Ad valorem taxes are imposed on real estate or personal property. This form of tax is levied by your local government counties, municipalities, school districts, and special taxing districts.


How are Ad Valorem Taxes Determined?

Ad valorem taxes are usually assessed annually and are solely based on the percentage of the assessed value of the property being taxed.

When you purchased your real estate or property that is being taxed, you probably learned a lot about Fair Market Value. Generally, fair market value is the price that you were willing to pay for your property as well as the amount the seller of your property was willing to accept. When it comes to determining the amount of ad valorem tax, fair market value is used to define the amount of assessed personal property tax based on the annual determination of the fair market value of your property.

When is Ad Valorem Tax Calculated?

Ad valorem taxes are calculated as of January 1st of each year. During that time, the taxing authority hires a property appraisal expert to value your taxable property. To help determine the fair market value of your property, the appraiser uses an established appraisal criterion which includes the following factors:

  • The cost of the taxed property.
  • The cost of depreciation of the property being taxed.
  • The comparable market data.
  • The use of the taxed property.
  • The estimated annual net income generated by the property, if used for business purposes.

Call Hegwood Group today at 972-248-9574 for Property Tax Consulting services.


Value Negotiation with County Assessors

In some situations, you may feel that the appraisal value of your property or real estate is incorrect. For these special circumstances, there is an appraisal appeal process that you can file as a taxpayer. If you disagree with the appraisal value that concerns your property or real estate, you have the right to go before the appraisal review board (ARB) in the county of your property.

At the Hegwood Group, all our property tax consultants are former county appraisers and have extensive experience in value negotiations from both sides of the table. As part of the appeals process, our property tax consultants will meet with the county assessor’s office to discuss and possibly negotiate a lower assessment for your property.

Contact us today if you would like to speak with one of our Ad Valorem tax consultants.

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