Definitions

Terminology related to property appraisals and tax rates can be confusing. A list of frequently used terms and there meanings are provided below: 

Market Value: The amount the Tarrant County Appraisal District believes your home is currently worth. 

Appraised Value: The appraised value is the value of your home after state-mandated limitations on value increases for residential homesteads is factored in. This value is set by the Tarrant County Appraisal District. In Texas the appraised value of a homestead may increase no more than 10% per year. 

Exemptions: Property tax exemptions are offered by the city and other taxing entities to lower your homestead’s appraised value and the amount you are taxed.  

Taxable Value: The Taxable Value is the Appraised Value minus any Exemptions. The tax rate is applied to this value to determine your tax bill. 

Effective Rate: The effective rate is the tax rate that would produce the same revenue to the taxing entity from the same properties taxed in both the current year and previous year.

Rollback Rate: The rollback rate is the tax rate that would raise the same amount of revenue from taxes levied in the prior year plus 8 percent. While a complicated formula is used to calculate rollback rates, it essentially limits increases in tax revenue to an amount that does not exceed growth and inflation. If a taxing entity adopts a rate that exceeds the rollback rate, voters are entitled to petition for an election to limit the rate to the rollback rate. 

Debt Service: Debt service is funding that is required to repay principal and interest on debt that has been issued by the city. 

Maintenance & Operations (M&O): Maintenance and operations is funding that is needed to cover the day to day operations of the city.