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. 

No-New-Revenue Tax Rate: A calculated rate that would provide the taxing unit with approximately the same amount of revenue it received in the previous year on properties taxed in both years. This rate calculation does not include the impact of additional tax revenue resulting from new construction.​

Voter-Approval Tax Rate: Tax rate level that allows the taxing jurisdiction to collect more taxes, not including debt repayment, than the previous year. This is the maximum tax increase allowed by law without triggering an election to "rollback" the taxes.​

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.