What is the function of the Central Appraisal District (CAD)?

• A. To collect taxes
• B. To appraise properties for ad valorem taxes
• C. To assess the value of local businesses
• D. To enforce property tax laws

Answer: (B)

The Central Appraisal District (CAD) primarily serves to appraise properties for ad valorem taxes. This means that the CAD is responsible for determining the value of properties within its jurisdiction, which is a crucial step in the property taxation process. By appraising properties, the CAD establishes a fair market value that is used to assess how much property tax a property owner is required to pay. This function ensures that all property owners are treated equitably in the taxation process, as it helps to maintain consistency and fairness in property valuations across the district.

Understanding that appraisal is distinct from collecting taxes or enforcing property tax laws is important. While these entities play roles in the overall tax system, their primary purpose does not involve determining property values. Instead, the CAD focuses on the accuracy of property appraisals, which directly influences the revenue collected by local governments.