Property Valuation
In Texas, the assessed value for property tax purposes can be LOWER than market value because:
ATexas law caps assessed values at 50% of market value
BHomestead exemptions, agricultural use valuations, and the 10% appraisal increase cap can reduce the taxable assessed value below market✓ Correct
CThe IRS requires assessed values to be lower than market values
DTREC sets assessed values independently of market data
Explanation
Various Texas tax benefits reduce taxable assessed value below market: homestead exemptions reduce taxable value; agricultural (1-d-1) use valuation taxes land at its productive value not market value; the 10% annual appraisal increase cap limits assessed value growth even when market values rise faster.
Related Texas Property Valuation Questions
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