Orange County Appraisal District explains how property values, homestead caps and disaster exemptions work
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Summary
Orange County Appraisal District chief appraiser Scott Overton told the City of Orange council how appraisals are set, the calendar for discovery/appeals, the 5% state compliance band that affects school funding, homestead exemptions and recent changes allowing prorated disaster (and fire) exemptions.
Scott Overton, chief appraiser at the Orange County Appraisal District, briefed the City of Orange council on Jan. 13 about the agency’s process for setting property values, exemptions and appeals.
Overton described the appraisal calendar: field discovery beginning in August, January–March sales-ratio analysis, a preliminary appraisal roll in April, an appeals window from May through July, and certification of the official roll by July 25. He said the tax code requires appraisals to reflect "100% of market value as of Jan. 1." He cited Texas Tax Code §1.04(7) as the statutory definition of market value.
Overton explained that the district uses three primary valuation approaches — sales, cost and income — and that commercial or income-generating properties often use an income approach. He said the district audits its work through MAPS and a property value study and must stay within a +/-5% margin of error of 100% market value or risk school funding consequences.
On exemptions, Overton reviewed homestead exemptions and the assessed-value cap: a homestead’s assessed (taxable) value can only increase by 10% per year even if market value jumps more. He said residents aged 65 or disabled receive additional relief (a $20,000 local option exemption plus school-side reductions that can total $200,000 combined in some cases) and that the tax code includes freeze protections for those eligible.
Overton also described disaster exemptions and a recent statutory update that adds home fires to temporary disaster exemptions. If the governor declares a disaster, homeowners may receive a prorated reduction for the remainder of the year (examples noted in the 35/50/75/100% bands). Home fire exemptions do not require a governor’s declaration but depend on documented damage and must be filed within statutory timeframes.
Council members asked about valuation differences across subdivisions and school-district boundaries; Overton said the district focuses on Orange County sales data only and performs audits at the school-district level, with additional adjustments for high-activity subdivisions.
Overton urged residents to read appraisal notices carefully, to respond to homestead-audit letters and to use the district’s website or phone staff for questions. He said residents may consult the appraisal district through July and file formal protests before the May 15 deadline if they want the appraisal review board to consider their case.