Texas Property Tax Consultant UPDATED
Questions and CORRECT Answers
Cost of annual Renewal fee - CORRECT ANSWER - $75
functional obsolescence - CORRECT ANSWER - A flaw in construction, materials or
design is known as
(Income Producing) Personal Property - CORRECT ANSWER - Property not permanently
attached to real estate and other assets such as inventories, furniture, and machinery
Capitalization Rate - CORRECT ANSWER - The capitalization rate is the rate of return on
a real estate investment property based on the income that the property is expected to generate.
Net Operating Income - NOI - CORRECT ANSWER - Net operating income equals all
revenue from the property minus all reasonably necessary operating expenses. Aside from rent, a
property might also generate revenue from parking and service fees, like vending and laundry
machines.
What is covered in Chapter 41 - CORRECT ANSWER - Local Review & Appeal through
binding arbitration
What is covered in Chapter 42 - CORRECT ANSWER - Judicial Review
special use property - CORRECT ANSWER - property that is taxed on 100% of market
value less any exemptions except
Renditions must be filed by - CORRECT ANSWER - April 15
Date that determines taxable status of property - CORRECT ANSWER - January 1
, Date Property Taxes become delinquent - CORRECT ANSWER - Feb 1
Deadline to request Binding arbitration - CORRECT ANSWER - 45 days from receipt of
Notice of Final Order (notice from ARB hearing)
The valuation of inventory is defined in which section of the Texas Property Tax Code -
CORRECT ANSWER - Section 23.12
25.25(c) corrects what kind of error - CORRECT ANSWER - clerical error
25.25(d) corrects what kind of error - CORRECT ANSWER - egregious error (1/3rd too
high)
Escheat - CORRECT ANSWER - Ownership passed to state if there are no heirs
Types of ownership interests - CORRECT ANSWER - Individual, Corporations,
Partnership, Tenants in Common, Join Tenants
Substitution - CORRECT ANSWER - A prudent buyer wouldn't pay more for real estate
than the cost of acquiring an equally desirable substitute
Principle of Balance - CORRECT ANSWER - Holds that value is created and maintained
in proportion to balance in the four factors in production.
Physical Incurable - CORRECT ANSWER - The cost of the cure is estimated to be greater
than the value resulting from the cure
Function Curable - CORRECT ANSWER - Outdated or unacceptable component. Cost to
replace is at least offset by the anticipated increase in utility or value resulting from replacement.
Questions and CORRECT Answers
Cost of annual Renewal fee - CORRECT ANSWER - $75
functional obsolescence - CORRECT ANSWER - A flaw in construction, materials or
design is known as
(Income Producing) Personal Property - CORRECT ANSWER - Property not permanently
attached to real estate and other assets such as inventories, furniture, and machinery
Capitalization Rate - CORRECT ANSWER - The capitalization rate is the rate of return on
a real estate investment property based on the income that the property is expected to generate.
Net Operating Income - NOI - CORRECT ANSWER - Net operating income equals all
revenue from the property minus all reasonably necessary operating expenses. Aside from rent, a
property might also generate revenue from parking and service fees, like vending and laundry
machines.
What is covered in Chapter 41 - CORRECT ANSWER - Local Review & Appeal through
binding arbitration
What is covered in Chapter 42 - CORRECT ANSWER - Judicial Review
special use property - CORRECT ANSWER - property that is taxed on 100% of market
value less any exemptions except
Renditions must be filed by - CORRECT ANSWER - April 15
Date that determines taxable status of property - CORRECT ANSWER - January 1
, Date Property Taxes become delinquent - CORRECT ANSWER - Feb 1
Deadline to request Binding arbitration - CORRECT ANSWER - 45 days from receipt of
Notice of Final Order (notice from ARB hearing)
The valuation of inventory is defined in which section of the Texas Property Tax Code -
CORRECT ANSWER - Section 23.12
25.25(c) corrects what kind of error - CORRECT ANSWER - clerical error
25.25(d) corrects what kind of error - CORRECT ANSWER - egregious error (1/3rd too
high)
Escheat - CORRECT ANSWER - Ownership passed to state if there are no heirs
Types of ownership interests - CORRECT ANSWER - Individual, Corporations,
Partnership, Tenants in Common, Join Tenants
Substitution - CORRECT ANSWER - A prudent buyer wouldn't pay more for real estate
than the cost of acquiring an equally desirable substitute
Principle of Balance - CORRECT ANSWER - Holds that value is created and maintained
in proportion to balance in the four factors in production.
Physical Incurable - CORRECT ANSWER - The cost of the cure is estimated to be greater
than the value resulting from the cure
Function Curable - CORRECT ANSWER - Outdated or unacceptable component. Cost to
replace is at least offset by the anticipated increase in utility or value resulting from replacement.
