When is property taxable by a taxing unit?

Property becomes taxable by a taxing unit if it is located within their jurisdiction on January 1. This date is significant as it marks the beginning of the tax year in Texas. Taxing units, such as counties, cities, and school districts, have the authority to levy taxes on property that is situated within their geographical boundaries as of that date. Therefore, any property that falls under their jurisdiction on January 1 is subject to ad valorem taxes for that year.

The emphasis on January 1 is critical because it establishes a clear cutoff for assessing tax obligations. If a property is situated in a taxing unit’s area after this date or if it is removed from that area, it may not be subject to taxation for that specific year. This foundational point helps avoid confusion as to when tax liabilities begin, making it a straightforward parameter for assessing property taxes.

While the other options touch on important aspects of property tax and exemptions, they do not directly address the fundamental criterion of geographic jurisdiction and the specific date on which property becomes taxable. For instance, applying for an exemption or the annual assessment of properties does not inherently determine taxable status unless those conditions intersect with the January 1 threshold within the taxing unit's jurisdiction.