Opinion ID: 2428184
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Heading: taxing real property in texas

Text: The Texas Constitution provides that counties may impose ad valorem taxes on real property in proportion to the property's value. Tex. Const, art. VIII, § 1(b). Additionally, the Tax Code provides that taxing entities should derive a property's value from the price the property would demand in the open market. See Tex.Tax Code § 1.04(7). [3] This codification comports with previously accepted methods for appraising fair market value. See Rowland v. City of Tyler, 5 S.W.2d 756, 760 (Tex. Comm'n App.1928, judgm't adopted) (realty's fair market value derived from reasonable cash market value which a voluntary sale would yield). Additionally, any appraisal of fair market value must include valuations of the property's surface and mineral estates. The Tax Code further specifies that generally accepted appraisal techniques must govern the appraisal process. A 1985 amendment to the Code amplified that requirement by providing that each property shall be appraised based on the individual characteristics that affect the property's market value. See Tex.Tax Code § 23.01(b) (Supp.1991). The distinctive individual characteristic in this case is the extensive limestone deposits underlying the Wise County acreage. So we move to the central issue before the court; that is, to what extent should the limestone underlying Gifford-Hill's property affect Wise County's ad valorem tax rate on the 2500 acres.