Texas Property Tax Consultant Exam Study Guide: Pass the RPTC Your First Try

1. Exam Overview: Format, Requirements & Registration

Before diving into content, let's cover the logistics. Understanding what you're walking into reduces test anxiety and helps you plan your preparation timeline.

Exam Administration

The Texas Department of Licensing and Regulation (TDLR) oversees property tax consultant licensing. The actual exam is administered by PSI (Psychological Services Inc.) at 17+ testing locations throughout Texas.

Key exam details:

• Passing score: 70% or higher
• Format: Multiple choice, computer-based
• Time limit: Varies (check your Candidate Information Bulletin)
• Exam fee: Paid directly to PSI at scheduling
• Results: Provided immediately at the testing center
• Retakes: No limit on attempts, but you pay the fee each time

Pre-License Education Requirements

You cannot sit for the exam until you complete 40 hours of TDLR-approved classroom education broken down as follows:

Topic Area	Required Hours
Laws and rules relating to property tax consulting	8 hours
Appraisal and evaluation	16 hours
Property tax consulting	8 hours
Ethics	8 hours
Total	40 hours

TDLR maintains a list of approved education providers. The Texas Association of Property Tax Professionals (TAPTP) is a popular option, as are courses offered through the Texas Comptroller's office and various private providers.

Application Process

1. Complete 40 hours of pre-license education
2. Submit your Property Tax Consultant Application to TDLR with the $50 fee ($25 registration + $25 application)
3. Once approved, TDLR notifies PSI electronically
4. PSI mails you an eligibility postcard with scheduling instructions
5. Schedule and pay for your exam through PSI
6. Pass the exam and receive your registration

Important: You have one year from TDLR approval to take and pass the exam. Don't procrastinate.

2. Texas Property Tax Code Structure

The Texas Property Tax Code is your bible for this exam. Understanding its structure helps you quickly locate information and recognize which chapter a question is testing.

Title 1: Property Tax Code - Key Chapters

Chapter	Title	What It Covers	Exam Weight
Chapter 1	General Provisions	Definitions, market value definition, taxable situs	Medium
Chapter 11	Taxable Property and Exemptions	Homestead, disabled veteran, over-65, agricultural exemptions	High
Chapter 22	Renditions and Other Reports	Business personal property renditions, deadlines, penalties	Medium
Chapter 23	Appraisal Methods and Procedures	Cost, income, and sales comparison approaches	Very High
Chapter 25	Local Appraisal	Appraisal roll corrections (Section 25.25)	High
Chapter 31	Collections	Tax bill requirements, delinquency dates, payment options	Medium
Chapter 41	Local Review	ARB protests, hearing procedures, right to protest	Very High
Chapter 41A	Binding Arbitration	Alternative to judicial review, requirements, deposits	High
Chapter 42	Judicial Review	District court appeals, filing requirements	High

Key Definitions from Section 1.04

The exam tests your knowledge of statutory definitions. Memorize these:

Market Value (Section 1.04(7)): "The price at which a property would transfer for cash or its equivalent under prevailing market conditions if:

• Exposed for sale in the open market with a reasonable time for the seller to find a purchaser
• Both the seller and purchaser know of all the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions on its use
• Both the seller and purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other"

Clerical Error (Section 1.04(18)): An error that:

• Is or results from a mistake or failure in writing, copying, transcribing, entering or retrieving data, computer programming, or calculating, AND
• Prevents an appraisal roll or tax roll from accurately reflecting a finding or determination made by the chief appraiser, the appraisal review board, or the assessor

Residence Homestead: A structure (including manufactured homes) and up to 20 acres of land that:

• Is owned by one or more individuals
• Is designed or adapted for human residence
• Is used as a residence
• Is occupied as the individual's principal residence by the owner or qualifying spouse

3. The Three Approaches to Value (This Will Be on the Exam)

Tax Code Section 23.0101 requires the chief appraiser to consider all three approaches to value and use the most appropriate method. Understanding when each applies—and how to calculate values using each method—is critical for the exam.

The Cost Approach

Best used for: New construction, special-purpose properties, properties with limited sales data

Key concepts:

• Replacement Cost New: Cost to construct a building with equivalent utility using current materials and standards
• Reproduction Cost: Cost to create an exact replica (rarely used in practice)
• Depreciation types:
  • Physical depreciation: Wear and tear, deferred maintenance
  • Functional obsolescence: Outdated design, layout, or features (internal to property)
  • External/Economic obsolescence: Factors outside the property affecting value (neighborhood decline, environmental issues)

Age/Life Method of Depreciation

The most common depreciation calculation on the exam:

The Sales Comparison (Market Data) Approach

Best used for: Single-family homes, vacant land, properties with abundant sales data

Key principle: Value is estimated by comparing the subject property to similar properties that have recently sold, then adjusting for differences.

Per Tax Code Section 23.013:

• A sale is not considered comparable unless it occurred within 24 months of the valuation date
• Adjustments must be made for changes in market value between sale date and valuation date
• Comparability factors include: location, square footage, age, condition, access, amenities, views, income, operating expenses, occupancy, easements, and deed restrictions

The Income Approach

Best used for: Investment properties, rental properties, commercial real estate

Core concept: Value is based on the property's ability to generate income. Investors buy income properties for their income stream, so value relates directly to that stream.

Direct Capitalization Method

Net Operating Income calculation:

1. Potential Gross Income (PGI) − all income if 100% occupied
2. Subtract Vacancy and Collection Loss
3. = Effective Gross Income (EGI)
4. Subtract Operating Expenses (not including debt service or income taxes)
5. = Net Operating Income (NOI)

Tax Code Section 23.012: Income Method Requirements

When using the income approach, the chief appraiser must:

1. Analyze the income stream of comparable properties
2. Consider historical operating expenses and trends
3. Analyze comparable data to estimate capitalization or discount rates
4. Base projections on reasonably clear and appropriate evidence

Uniform and Equal Appraisal (Section 41.43)

This is a distinct protest ground that compares your property's assessment to similar properties. The 2003 amendment to the Tax Code allows property owners to protest based on "a reasonable number of comparable properties appropriately adjusted."

Under unequal appraisal, you calculate the median assessed value per square foot of comparable properties and apply it to your property. This can result in a lower value even if your property's market value is higher than the appraised value.

4. Chapter 41: Local Review & ARB Protest Procedures

This is the meat of what property tax consultants do. Chapter 41 governs the administrative protest process before the Appraisal Review Board (ARB). Expect heavy testing on this section.

Section 41.41: Right of Protest

A property owner is entitled to protest the following:

1. Determination of the appraised value of the property
2. Unequal appraisal of the property
3. Inclusion of the property on the appraisal records
4. Denial or cancellation of an exemption
5. Determination that the owner's land does not qualify for agricultural, timber, or other special appraisal
6. Identification of taxing units in which property is taxable
7. Determination that the property owner is the owner of property
8. Determination that a change in use of land under special appraisal has occurred
9. Any other action of the chief appraiser, appraisal district, or ARB that adversely affects the property owner

Section 41.44: Notice of Protest & Deadline

The statutory deadline is the LATER of:

• May 15, OR
• 30 days after the Notice of Appraised Value was delivered

If the deadline falls on a weekend or holiday: Extended to the next business day.

Late protest grounds (Section 41.44(c)): A protest may be filed after the deadline if:

• The property owner can show good cause for missing the deadline, AND
• The protest is filed before the ARB approves the appraisal records

Section 41.45: Hearing on Protest

Notice requirements:

• ARB must deliver written notice of hearing date, time, and place at least 15 days before the hearing
• Notice must include a copy of the ARB's hearing procedures

Section 41.43: Burden of Proof

This is crucial and frequently tested:

General Rule: In a protest under Section 41.41(a)(1) or (2) (market value or unequal appraisal), the appraisal district has the burden of establishing value by a preponderance of the evidence.

If the appraisal district fails to meet this burden: The protest shall be determined in favor of the property owner.

Section 41.66: Hearing Procedures

Key rights of property owners at ARB hearings:

• Hearings shall be informal to the greatest extent practicable
• Each party is entitled to offer evidence, examine or cross-examine witnesses, and present arguments
• Property owner can elect to present their case before OR after the appraisal district
• The ARB must schedule hearings for a time and date certain
• If a hearing doesn't begin within 2 hours of scheduled time, the property owner is entitled to a postponement

Evidence exchange requirement: The appraisal district must make available all evidence it intends to present at least 14 days before the hearing.

Section 41.47: Determination of Protest

The ARB must:

1. Make a written order determining the protest
2. Deliver by certified mail a copy of the order to the property owner
3. Include notice of the owner's right to appeal

Timeline trigger: The 45-day period to file a judicial appeal OR the 60-day period to file for binding arbitration begins when the property owner receives the written order.

Section 41.411: Notice Failure Protests

If the chief appraiser or ARB fails to provide a required notice, the property owner may file a protest. This is a separate protest ground that can extend protest rights even after normal deadlines have passed.

5. Chapter 42: Judicial Review & Appeals

When the ARB doesn't provide relief, property owners can appeal to district court. Chapter 42 governs this process.

Section 42.01: Right of Appeal by Property Owner

A property owner may appeal by filing a petition in district court for review of:

• An ARB order determining a protest
• An ARB order determining a Section 25.25 motion
• A determination that the owner forfeited their right to a final determination

Section 42.06: Notice of Appeal

Deadline: 60 days after the date the property owner receives the ARB order.

The property owner must file written notice of appeal with:

1. The chief appraiser
2. The ARB (the chief appraiser forwards to ARB if received within 15 days)

Section 42.09: Exclusive Remedy

This is heavily tested: The remedies in the Property Tax Code are EXCLUSIVE.

A property owner who is dissatisfied with their appraisal must use the administrative and judicial review procedures provided by the Tax Code. They cannot raise issues in a delinquent tax lawsuit that they failed to raise through the protest process.

Section 42.26: Appeal Based on Unequal Appraisal

In district court, property owners can pursue both:

• Market value reduction, AND
• Unequal appraisal reduction

They may also recover reasonable attorney fees within statutory limits.

6. Chapter 41A: Binding Arbitration

Binding arbitration provides an alternative to judicial review that's faster and less expensive than district court. This section is frequently tested.

Section 41A.01: Right to Binding Arbitration

Eligibility requirements:

• The ARB has issued a determination on appraised/market value OR unequal appraisal
• The property's value as determined by the ARB does not exceed $5 million (no limit for residence homesteads)
• The protest was filed under Section 41.41(a)(1) or (2)
• Taxes are not delinquent on the property

Section 41A.03: Filing Requirements

Deadline: 60 days after receiving the ARB order of determination.

Required deposit amounts:

Property Type	Value (per ARB)	Deposit
Residence Homestead	$500,000 or less	$450
Residence Homestead	Over $500,000	$500
Non-Homestead	$1 million or less	$500
Non-Homestead	$1M – $2M	$800
Non-Homestead	$2M – $3M	$1,050
Non-Homestead	$3M – $5M	$1,550

The Arbitration Process

1. File request and deposit with the Comptroller within 60 days
2. 45-day settlement period begins (parties can settle or withdraw)
3. If withdrawn during settlement period: Refund minus $50 Comptroller fee
4. Arbitrator assigned from Comptroller's registry
5. Hearing conducted per Civil Practice and Remedies Code
6. Award issued within 20 days of hearing conclusion

Section 41A.09: Arbitration Award

The arbitrator's award:

• Must include a determination of appraised or market value
• May include any remedy a court could order under Chapter 42
• Is FINAL and may not be appealed (except under limited Civil Practice and Remedies Code provisions)
• May be enforced like a court judgment

Section 41A.015: Limited Binding Arbitration

A separate process to compel procedural compliance. Used when the ARB or chief appraiser fails to:

• Comply with hearing procedures
• Schedule a hearing as required
• Deliver required information
• Allow the property owner to present evidence
• Start a hearing within 2 hours of scheduled time

Who Can Represent Parties in Arbitration?

Per Section 41A.08, parties may be represented by:

• Themselves (pro se)
• An attorney
• A licensed real estate broker or salesperson
• A licensed or certified real estate appraiser
• A registered property tax consultant
• A certified public accountant

7. Property Tax Exemptions You Must Know

Chapter 11 of the Tax Code covers exemptions. The exam tests both eligibility requirements and exemption amounts.

Section 11.13: Residence Homestead Exemption

General Homestead Exemption:

• Available to property owners who own and occupy their home as their principal residence on January 1
• School district exemption: $100,000 from appraised value (as of 2023 legislation)
• Counties, cities, and special districts may offer additional local option exemptions (minimum $3,000)

Over-65 Exemption:

• Available to homeowners age 65 or older
• School district: Additional $10,000 exemption
• Tax ceiling (freeze): School taxes cannot increase above the amount paid in the year you qualified (unless improvements added)
• Surviving spouse age 55+ may continue the exemption and ceiling

Disabled Person Exemption:

• Must meet federal definition of disability under Social Security
• School district: Additional $10,000 exemption
• Tax ceiling applies

Section 11.22: Disabled Veteran Exemption

Available to veterans with service-connected disabilities. Exemption amounts based on disability rating:

Disability Rating	Exemption Amount
10% – 29%	$5,000
30% – 49%	$7,500
50% – 69%	$10,000
70% – 100%	$12,000

Enhanced exemptions:

• Veterans age 65+ with at least 10% rating: $12,000
• Veterans who are blind in one or both eyes: $12,000
• Veterans who have lost use of one or more limbs: $12,000

Section 11.131: 100% Disabled Veteran Homestead Exemption

Total exemption of all property taxes on the residence homestead for:

• Veterans with 100% disability rating, OR
• Veterans with Individual Unemployability (IU) determination from the VA, AND
• Receiving 100% disability compensation

Surviving spouse: May continue the exemption if the deceased veteran qualified in the year of death and the spouse has not remarried.

Section 11.133: Surviving Spouse of Armed Services Member Killed in Action

Total exemption on residence homestead if:

• Surviving spouse of a member of U.S. armed services killed or fatally injured in the line of duty
• Surviving spouse has not remarried

Agricultural (1-d-1) and Timber Appraisal

Chapter 23, Subchapters C, D, E, and H provide for special "productivity" appraisal of agricultural, open-space, and timber land based on the land's capacity to produce, not market value.

Rollback taxes: If land under special appraisal changes use, additional taxes are imposed for the difference between special appraisal taxes and market value taxes for the preceding 5 years, plus interest.

Application Deadlines

• General deadline: April 30
• Late applications: Certain exemptions allow late filing up to 5 years after the delinquency date (disabled veterans, over-65)

8. Section 25.25: Correction of Appraisal Roll

This section provides remedies outside the normal protest timeline. It's heavily tested because it's one of the most useful tools for consultants.

Section 25.25(b): Chief Appraiser Corrections

The chief appraiser may correct the appraisal roll at any time for:

• Name or address corrections
• Determination of ownership
• Description of property
• Multiple appraisals of a property
• Erroneous denial/cancellation of exemptions for disabled or 65+ applicants
• Clerical errors that do NOT increase tax liability

Section 25.25(c): ARB Motions for Prior Years

The ARB, on motion of the chief appraiser or property owner, may correct the appraisal roll for any of the five preceding years for:

1. Clerical errors affecting tax liability
2. Multiple appraisals of a property
3. Inclusion of property that doesn't exist in the form or at the location described
4. Ownership errors (property shown as owned by wrong person on January 1)

Section 25.25(d): Substantial Error Correction

Before taxes become delinquent, a motion may be filed to correct an error that resulted in incorrect appraised value if the error exceeds:

• One-fourth (25%) of correct value for residence homestead
• One-third (33.3%) of correct value for non-homestead property

Late-correction penalty: If changed under 25.25(d), the property owner must pay a 10% late-correction penalty on taxes calculated from the corrected value.

Same limitations apply: No change if prior protest hearing on the merits or written settlement agreement.

Section 25.26: Prepayment Requirements

For 25.25 motions heard after the delinquency date, the property owner must pay the amount of taxes not in dispute to avoid forfeiture of remedy.

9. Critical Formulas & Calculations

The exam includes math questions. Memorize these formulas and practice calculations.

Income Approach Formulas

Cost Approach Formulas

Tax Calculations

Tax rates in Texas are expressed per $100 of value. A rate of $2.50 means $2.50 per $100 of taxable value.

Percentage Calculations for 25.25(d)

Contractor Overhead and Profit Calculation

10. Key Dates & Deadlines Cheat Sheet

Memorize these dates. Multiple exam questions test deadline knowledge.

Date	Event/Deadline	Code Section
January 1	Valuation date for property taxes	§23.01
January 31	Last day to pay taxes without penalty (standard)	§31.02
February 1	Taxes become delinquent	§31.02
April 1	Deadline for rendition of business personal property (with automatic extension to May 1)	§22.23
April 1	Homestead Notice of Appraised Value due (or as soon thereafter as practicable)	§25.19
April 30	Deadline for exemption applications	§11.43
May 1	Non-homestead Notice of Appraised Value due (or as soon thereafter as practicable)	§25.19
May 15	Standard protest deadline (or 30 days after NOV, whichever is later)	§41.44
July 20	ARB must substantially complete hearings (no more than 5% of value remaining)	§41.12
45 days	Judicial appeal deadline after receiving ARB order	§42.06
60 days	Binding arbitration deadline after receiving ARB order	§41A.03