I encounter numerous homeowners each year that are stunned by their property tax valuations. No matter how you feel about your property tax assessment, filing a property tax protest is a wise move. This guide offers a step-by-step approach to challenging your property tax valuation, potentially leading to significant savings.
Understanding Your Tax Assessment
Before you file your protest, it's critical to understand your property tax assessment. Texas counties assess property values annually, and these values determine your tax liability. You'll receive a notice detailing your property's appraised value, typically in the spring. Review this document thoroughly; it's the starting point for your appeal.
Step 1: Filing a Protest
If you disagree with your initial assessment, file a Notice of Protest with your county appraisal district by May 15th or within 30 days of the notice date, whichever is later. This can be done online, in person, or via mail. The Texas Comptroller has a standardized form that can be used as your Notice of Protest, link here. Your county appraisal district might also provide a form that can be used. The form has a space where you can indicate your opinion of your property’s value. We recommend leaving that space blank until you’ve had a chance to review all the information available regarding the market and your property’s assessment. Make sure your protest is submitted on time. You lose any recourse if you file your protest late.
Step 2: Gathering Evidence
Solid evidence is key to a successful property tax protest. This can include recent sales data of comparable properties, photographs, repair estimates for damages not considered in the assessment, equity comparables, and any other relevant documentation that supports your claim of overvaluation.
Step 3: Informal Negotiation
Before the formal hearing, there's often an opportunity for an informal negotiation with the appraisal district's staff. This is your chance to present your evidence and discuss your valuation in an informal, one-on-one setting. Many protests are resolved at this stage without needing a formal hearing.
Step 4: Appraisal Review Board (ARB) Hearing
If a resolution isn't reached informally, the next step is a formal hearing before the Appraisal Review Board (ARB). You will have a brief period with which to present you evidence and argue for your tax assessment to be reduced. The appraisal district will also have a representative at the hearing. The appraisal district rep will present their evidence and attempt to refute your argument. Prepare to present your evidence in an organized and persuasive manner. The ARB will listen to both sides before making a decision.
Step 5: If You Disagree with the ARB’s Decision
Should the ARB's decision be unsatisfactory, you can appeal to the State Office of Administrative Hearings, pursue binding arbitration, or file a lawsuit in district court. Each of these steps requires careful consideration. Our preferred route is to appeal through binding arbitration. The Texas Comptroller requires that appeal requests are submitted with a deposit, the amount of which is typically $500 but varies based on your property’s assessed value. Many appeals can be settled informally after the Comptroller has approved your appeal request. The Comptroller’s office will take a $50 processing fee from your deposit, however the remainder of your deposit is returned to you if your appeal is withdrawn before an arbitrator is assigned to your case. This makes the arbitration process much more cost effective than hiring an attorney for a lawsuit.
Conclusion
Appealing your property tax valuation in Texas can be a challenging process, but it's often worthwhile. By understanding your assessment, gathering compelling evidence, and presenting a strong case, you can effectively argue for a reduction in your property valuation and, consequently, your property tax bill.