Property taxes are a significant financial responsibility for homeowners in Texas. The amount you pay in property taxes is determined, in part, by the value assigned to your property by the local appraisal district. While appraisal districts have the flexibility to use different approaches, the Computer Assisted Mass Appraisal (CAMA) system allows the district to ensure fair and equal treatment.
Learn more about what the CAMA system is, and most importantly, how it directly affects what a homeowner pays in property taxes.
What is the CAMA system?
The CAMA system is a property valuation system used for tax assessment purposes. This method systematically groups similar properties together in an area to assign a market value. The market value is the estimated price a property would sell for on the open real estate market.
As mandated by Texas State law, appraisal districts are responsible for determining the market value of properties at least once every three years. Mass appraisal is different from the methods that a third-party appraiser would use to appraise a property for a mortgage or insurance.
How is the CAMA system Used to Calculate Property Values?
Again, the CAMA system is a systematic approach that assesses property values on a large scale. Here’s how it works:
- Data Collection: Appraisal districts gather a vast amount of data on properties within their jurisdiction. This data includes property characteristics, recent sales prices of similar properties, and other relevant information.
- Model Development: Using this data, the appraisal districts create statistical models to estimate property values. These models take into account factors like location, size, condition, and recent market trends.
- Application: The models are applied to all properties within the district to determine their estimated market values. This is done efficiently and consistently for thousands of properties.
The CAMA system allows appraisal districts to value numerous properties quickly and consistently.
Cons of the CAMA system
- Generalization: The CAMA system relies on generalized models, which may not account for unique features of individual properties.
- Inaccuracy: While generally accurate, the system may not capture specific property characteristics or conditions accurately, leading to occasional over- or undervaluation.
- Limited Transparency: Homeowners may find it challenging to understand how their property’s value was determined, as the models and data used are often complex.
How Does the CAMA system Affect Homeowners?
Since the CAMA system is the methodology that appraisal districts use to estimate the market value of your property, it is a key factor in calculating your property tax liability. Because the system does not account for unique characteristics of your property, it is possible that your value is inaccurate. Higher property values result in higher property tax bills.
Mass appraisal models are inherently imperfect. No model can perfectly account for all characteristics in a population of data.
If you believe your property’s value has been inaccurately assessed, you have the option to appeal the valuation.