The Central Appraisal District of Collin County is a political subdivision of the State of Texas created on January 1, 1980, by the authority of the 1979 State Legislature, to provide uniform ad valorem (according to value) property appraisals to the taxing entities within Collin County. Operations began on April 1, 1980. All cities, school districts, special districts such as municipal water districts and the community college district within Collin County which levy an ad valorem property tax are required to fund the annual budget of the Appraisal District. Senate Bill 621 specifies that the formula for determining each member's contribution to the Appraisal District's budget will be based on the percent of tax levy each entity collects compared to the total tax levy of all taxing entities in the Appraisal District.

The Appraisal District is governed by a board of directors appointed by the taxing entities participating in the Appraisal District. The board has five voting members, however if the county Tax Assessor/Collector is not appointed by the entities as a voting member of the board, he or she automatically serves as a non-voting board member.

The board of directors appoints a chief appraiser to function in the capacity of chief administrator of the Appraisal District. The chief appraiser, as provided by the annual budget adopted by the board of directors, may employ professional, clerical and other personnel.

The Local Administrative Judge of Collin County appoints the members of the appraisal review board (ARB). Appraisal Review Board members serve two-year terms and are permitted to serve a maximum of three consecutive terms. The appraisal review board's primary function is to hear protests filed by a property owner or the owner's agent, regarding the District's appraisal of the subject property. The ARB also hears protests concerning exemptions, ag-use valuations and ag-use rollbacks.