Protest Resources

If you haven’t claimed your homestead exemption – even if you only recently acquired the property — you are overpaying on your property taxes. This exemption reduces your property taxes by decreasing the taxable – but not the market — value of your owner-occupied home.

There is one form to be used to file for your homestead exemption but the process of filing can vary across counties.  This post will walk you through qualifying for a homestead exemption and how to file in your county. 

What’s a Homestead Exemption?

In Texas, homeowner’s property tax exemptions are known as homestead exemptions. The general homestead exemption is the most common type of homeowner’s property tax exemption. It excludes a specific portion of the home’s taxable value, ultimately reducing your property taxes. 

For instance, if your home was appraised at $250,000 in value and you receive a $25,000 homestead exemption, the taxable value of the property will be decreased by $25,000. This means that you will be taxed as if your home had an appraisal value of $225,000.

The homestead exemption also exempts your home from claims of creditors other than your mortgagee.  If you have debts other than your mortgage, then those creditors can make no claim against your homesteaded property in a court of law.  This is a legacy of frontier days when a man’s home and his horse (today one car) were deemed exempt from claims of creditors.

Am I Eligible for a Homestead Exemption?

To qualify, you must possess an ownership interest in the property and reside in it as your principal residence effective the first day of the year.  But in a new regulation which went into effect September 1, 2021 if you purchased the property after January 1 you can claim the homestead exemption in the year of purchase even if you didn’t live there January 1.  

If your property includes unimproved land, you can claim the part of the land that is used for a residential purpose as part of your homestead, up to 20 acres.  

You can claim only one homestead, so you can’t receive an exemption on any additional properties you own. 

What’s a Homestead Exemption Worth?

Homestead exemption amounts are not standardized. Instead, each taxing unit can choose the amount it will exempt, with some limitations. The Texas Property Tax Code requires all independent  school districts to offer a $25,000 homestead exemption. Any other taxing unit can offer an additional homestead exemption of up to 20% of the property’s appraisal value, but the exemption amount cannot be less than $5,000. This means that if a taxing unit sets a percentage-based exemption, the lowest exemption amount a homeowner can receive is $5,000, even if the chosen percentage of the property’s appraisal value is less than $5,000.

How Do I File for a Homestead Exemption?

You will fill out an application form (Texas Comptroller’s Form 50-114 available here) with some basic information about yourself and your homestead property. You will also need to provide a copy of your Texas driver’s license or Personal Identification Certificate. The address listed on the identification provided must match the address for which you are requesting the exemption. You then must submit the application form to the appraisal district for the county where your property is located between January 1 and April 30. 

Specific application instructions for the counties in which Property Tax Protest provides services are listed below.

Collin County

In Collin County, you must file your application form and the required supporting documentation with the Collin Central Appraisal District office at 250 Eldorado Pkwy, McKinney, TX 75069-8023.

Dallas County

The Dallas Central Appraisal District generates custom homestead exemption application forms for each property. To print a Homestead Exemption Application form, you’ll need to search the appraisals to find your property account. You can search by owner name, address, or account number. 

Once you have located your property, click the blue link on the address to view your account details. On this page, you can then select the “Print Homestead Exemption Form” link to download and print a copy of your application form. You can then submit the application form in person to the appraisal district office at 2949 N. Stemmons Freeway, Dallas or by mail to PO Box 560328 Dallas, Texas 75356-0328.

You may also be eligible to apply online if you are requesting an exemption for the current calendar year. If you are eligible, there will be a “File Homestead Exemption Online” link on the details page for your property. Click this link to apply online.

Denton County

To claim your homestead exemption in Denton County, you can mail or drop off your application form at the Denton Central Appraisal District office at 3911 Morse Street, Denton, TX 76208. You can also email your application to customerservice@dentoncad.com or upload your form by submitting a request for assistance on the appraisal district’s website. When the request form asks how you would categorize your request, you can simply select the “Exemption Forms” option.

Harris County

The Harris County Appraisal District allows you to submit your application for a homestead exemption online. You may also complete, print, and sign a fillable application form and mail or deliver it to the appraisal district’s office at 13013 Northwest Freeway Houston, Texas 77040-6305.

Tarrant County

To apply for a homestead exemption for a property in Tarrant County, you can submit an application form to the Tarrant Appraisal District by mailing it to PO Box 185579 Fort Worth, TX 76181-0579 or delivering it to a dropbox location at 2500 Handley-Ederville Road, Fort Worth, TX 76118. You can also receive free assistance in completing your form by contacting an exemptions specialist at (817) 284-4063. 

Travis County

In Travis County, you can claim your homestead exemption by submitting the application form in person at the Travis Central Appraisal District office, which is located at 850 East Anderson Lane, Austin, TX 78752. You can also file an online application.

What To Do if Your Homestead Exemption Is Denied

When you file for a homestead exemption, the county appraisal district’s Chief Appraiser will review your application and supporting documentation and approve or deny your request. If your claim for a homeowner’s property tax exemption is wrongfully denied, you can file a property tax protest with your local appraisal district. 

Your protest will be heard by your county’s Appraisal Review Board (ARB). The ARB is a group of citizens that is responsible for resolving disputes between property owners and the appraisal district.  It operates as an independent body from the appraisal district. At your property tax protest hearing, you can challenge the denial of your homestead exemption, as well as other issues such as the appraisal value of your home. 

Qualifying for a homestead exemption can decrease your property tax bill. Property Tax Protest has been helping homeowners reduce their property taxes for over 20 years.  Sign up for our services today with zero risk: there’s no up front cost and if there’s no reduction there’s no fee.

A home appraisal is an estimate of the value of a particular property. Appraisal values can impact numerous aspects of their owners’ lives and finances, including equity, the cost of homeowner’s insurance, and property taxes. For this reason, it’s essential to know which factors appraisers consider when valuing a home. 

This blog post will explore some common factors that may affect your home’s appraisal. 

What Factors Impact My Home Appraisal Value?

Many factors can impact your home’s appraised value, including but not limited to the features and condition of the house, the neighborhood, and the housing market.

The Features and Condition of the Home

When property tax appraisers assess the value of your home, they will consider specific characteristics about your home itself, including its structure, age, maintained condition, and features. Any of the following factors can affect your property’s appraisal value:

• Size of the lot
• Year built
• Square footage
• Number of bedrooms 
• Number of bathrooms
• Finished basements and attics
• Garages, sheds, and other storage structures
• Parking availability
• Maintenance level
• Age and quality of building materials used
• Condition of roof and foundation
• Energy efficiency
• Age and condition of systems and home appliances
• Public utility hookups
• Curb appeal
• Home renovations

This means that old appliances or poorly maintained heating, cooling, plumbing, or electrical systems can hurt the appraisal value of your home. Outdated interior and external finishes can also decrease your property values, as can hazardous building materials such as asbestos and lead paint. 

The Home’s Location

Your home is worth more if it’s located in a desirable area with amenities like good schools, employment opportunities, shopping areas, entertainment, and parks. Therefore, it can seriously hurt your home appraisal if you live in an area with high crime rates or in a lower-performing school district. In fact, your home’s appraisal value will be lower than the exact same structure would be in a more sought-after neighborhood.

Zoning laws and land usage in the area can also impact your home’s value, as well as building density and the proximity to public transportation and other amenities.  In some cases having a flood zone on part of the property can reduce its land value but in others the flood zone may be considered an amenity that adds value.  

The Local Housing Market 

Comparable sales in your neighborhood will likely have the greatest impact on the valuation of your home.  They are the “gold standard” for establishing value at the Appraisal Review Board. “Comps” are homes of a similar layout, size, age, and condition in the area.  Appraisers compare your home to them. 

This means that if the local real estate market is hot, your property’s appraisal value will increase to correspond with higher sale prices. Fortunately, Texas law caps home appraisal value increases for homesteaded properties at 10% per year, so even if the market value skyrockets, you have some protection from excessive tax hikes. However, the 10% limitation on taxable value increases applies since the date of the latest appraisal.  So, if that appraisal was two years ago your taxable value can increase 20% in one year.

What Should I Do if My Property Tax Appraisal is Too High?

When it comes to Texas property tax, each county’s appraisal district is responsible for assessing house values for all the real property in the county. The appraisal value is then used to calculate the amount of property taxes you owe for the year. The higher your home appraisal cost, the higher your tax bill will be. 

Since each appraisal district is responsible for estimating the value of every single property in the county, the appraisal values are often rough estimates based on properties of a similar size in the area that may or may not actually be comparable rather than the particular attributes of your home. Without performing an actual inspection, an appraiser won’t know that your roof leaks or your appliances are outdated, which often leads to an inflated and inaccurate appraisal value. 

File a Property Tax Protest

The fact is that, while tax appraisal districts regularly overvalue homes, many homeowners simply pay the amount shown on their property tax statement without exercising their rights to challenge the appraisal value.  Typically only about one third of homeowners file property tax protests each year and many of those who file neglect to utilize all the grounds available to support their case. 

By filing a property tax protest, you or your legal representative can present evidence why your home’s appraisal value is too high. For example, the assessor may have been incorrect regarding certain attributes of your home, such as its square footage, age, or the number of bedrooms and bathrooms. You can also show why your home should be worth less than “comparable” homes by showing documentation of poor conditions, maintenance issues, needed repairs, damages, or dated appliances. Or, if actual comparable homes in the area were estimated to have a lower appraisal value than yours, you can argue that the appraisal value for your home is disproportionately high.  

When you file your protest, a hearing will be scheduled in front of an independent group of citizens called the Appraisal Review Board (ARB). The ARB is responsible for resolving disagreements between the county appraisal district and local property owners. After both sides present their evidence, the ARB will determine a final value and issue an Order establishing a new market value or sustaining the district’s proposed market value.

You can challenge the ARB’s ordered value by filing for binding arbitration.  Property Tax Protest has often been successful in contesting ARB Orders in binding arbitration.  For more information see Binding Arbitration: An Owner’s Last and Often Best Resort.

When your home has been appraised for more than it’s worth, it’s essential to file a property tax protest to get the appraisal value reduced. Since the appraisal district often does not have complete and accurate information about your home, a protest can be the only way to receive an appropriate property tax bill. At Property Tax Protest, we know how to get your property appraisal value reduced, and we have been doing so for more than 20 years. Sign up for our no-risk services today: if we don’t get the appraisal value on your home reduced, you won’t owe us a penny.

In Texas, two essential factors contribute to your property tax bill: the appraisal value of your home and the tax rates set by the local taxing units. Since you can’t do anything to reduce the tax rates, the key to lowering your property taxes is to get the appraisal value of your home reduced. Fortunately, there are steps that you can take to save money on your property tax bill. 

Before Your Home is Appraised

Every county in Texas has its own appraisal district that is responsible for determining property market values. The appraisal district may send a Value Notice of your home in April or May but it is not obligated to send a Value Notice to all owners whose values may have been increased from the preceding year’s value.  Nevertheless, there are several actions you can take to lower the initial appraisal value of your home before you receive your Value Notice. These tips can help you lower your property’s appraisal value, which in turn lowers your property taxes.

File for a Homestead Exemption

If the property you’re being taxed on is your primary residence and you’ve lived there from January 1, applying for a homestead exemption can save you a substantial amount on your property taxes. With a homestead exemption, a certain amount of your home’s value is not counted towards your residence’s taxable value. As an example, if your house was appraised at $150,000 and you receive a $20,000 homestead exemption, your home’s appraisal value will be reduced by $20,000, and you will be taxed at $130,000. 

Join in on the Assessor’s Walkthrough

If a tax assessor requests permission to walk through your home to appraise it, you should consider joining them while they are conducting their evaluation. This will give you the opportunity to make sure the assessor notices the issues with the house and allow you to point out any deficiencies that might not be immediately apparent. When the assessor considers the bad as well as the good aspects of your home, you are more likely to receive a fairer (and lower) appraisal value.  The assessor cannot inspect the interior of your home without your permission.  You can deny permission if you feel that it would be intrusive or otherwise not in your interest.

After Your Home is Appraised

Your property should be appraised at market value, which is the value at which a knowledgeable buyer and a knowledgeable seller would agree if neither were under pressure to buy or to sell.  Unfortunately, even if you file for a homestead exemption and join the tax assessor on the walkthrough, property tax appraisal values are often higher than market.  If you believe that your appraisal value is more than it should be, you can submit a property tax protest to your local appraisal district. 

Filing a property tax protest gives you the opportunity to challenge the district’s appraisal value for your home through a hearing with an independent Appraisal Review Board (ARB). At this hearing, you’ll be able to present evidence to show why your home’s appraisal value is too high.  The appraisal district will present its evidence and the ARB will determine a final market value of your property for taxation.  

A few of the best strategies for finding evidence that can convince the ARB to lower your property tax appraisal value are listed below. 

Check Your Property Records for Errors

Your local appraisal district compiles certain information about every piece of real estate property in the area, including the following:

• Appraisal value
• Square footage
• Number of bedrooms
• Number of bathrooms
• Year the house was built

This information is publicly available, typically on your local appraisal district’s website. Checking your records for mistakes can allow you to identify misinformation that could be wrongfully inflating your home’s appraisal value. If you identify any such mistakes, you will likely  receive a property tax reduction either from the ARB or throiugh negotiation informally with the appraisal district. 

Review Comparable Appraisals

Your county’s property records are publicly available. This means that, in addition to reviewing the above information about your own real estate on the appraisal district’s website, you can also see similar data for every property in the county. Accessing these records allows you to compare your home’s property tax appraisal value to other properties in the area with a similar floorplan, square footage, age, and condition. Because appraisal districts are required to appraise property fairly and consistently, if you find that comparable homes were assessed at a lower value than yours, you have an argument for a reduction under Inequality of Appraisal.  Inequality of Appraisal is a complex argument to make before the Appraisal Review Board but it can result in tax savings where comparable sales are not supportive.  In other words, Inequality of Appraisal can result in a taxable market value below market!  

Get an Independent Appraisal

When you believe that the county appraisal district’s assessment of your property is too high, you may benefit from having an independent real estate appraiser evaluate your home. If a licensed values your home as less than the county’s assessment, you may file for a property tax reduction.  Appraisal districts must place credence on the value determined by a licensed appraiser.  Often a licensed appraisal can be obtained for less than the amount you save in first year property taxes and considering that reductions often last more than one year the appraisal cost can be considered a reasonable investment in your future savings.

Even when you have strong arguments, lowering your property taxes can be a complex process. That’s why working with Property Tax Protest makes your life much simpler. We have been helping our clients get their property taxable values reduced for over 20 years. Sign up with us today with no risk involved: there’s no upfront fee and if there’s no reductin there’s no fee.

Paying property taxes is an integral part of owning a home in Texas. But how exactly do property taxes work?

There is no state property tax in Texas, so property taxes are only administered at the local level. Therefore, the state government is not involved in setting property rates or collect taxes from property owners. However, Texas state law establishes the process that local taxing units must follow when assessing property taxes. 

This blog will explain what property tax is, how it is calculated, and what you can do to lower your tax bill.

What Is Property Tax? 

Property tax is a type of annual tax that is assessed to real estate owners. In Texas (and most other states), property tax is an “ad valorem” tax, which means the amount you owe is calculated based on the value of the property you own.  Because Texas has no state-level property or income taxes, local property taxes are the primary source of funds for schools, police and fire services, street maintenance, and many other services.

How Is Texas Property Tax Calculated?

Texas property tax is calculated based on three considerations: 

• Your property’s appraisal value
• Any exemptions you are qualified to receive
• The local tax rates

The process for determining each of these values is detailed below. 

Property Appraisal Values

Because property taxes are assessed according to the value of your real estate, the first step in calculating your property tax is to determine the appraisal value of your home.

Your property’s appraisal value should correspond with its current fair market value. In Texas, each county has its own appraisal district that assesses the value of all real estate in the county. Your county’s appraisal district is responsible for determining the value of your home between January 1 and April 30 of each year. 

So, for example, if you live in Dallas, your home’s market value will be determined by the Dallas Appraisal District. If you live in Tarrant County, the Tarrant Appraisal District will appraise your home. The Denton County Appraisal District values homes in Denton, the Travis Central Appraisal District is responsible for assessing Austin homes, and the Harris County Appraisal District handles the Houston area.  

To learn more about the specific appraisal process in your county, you can contact your county’s appraisal district or visit its website.

Exemptions 

Another factor that impacts your property tax bill is whether any portion of your home’s value is exempt from taxes. Exemptions identify a specific dollar amount or percentage value of your property that is not taxable, thereby reducing the taxable value of your home. For example, if your property is appraised at $250,000 and you receive a $25,000 exemption, you will be taxed as if your property’s value was $225,000.

The most common exemptions in Texas are homestead exemptions, which can be applied to owner-occupied residences. Everyone who qualifies for a homestead exemption can receive a $25,000 exemption for their school district taxes. Other taxing units can also decide to offer exemptions equaling up to 20% of the property’s value. If a taxing unit allows for a percentage-based exemption, you are entitled to at least a $5,000 reduction of value, even if 20% calculates to less.

It’s important to note that exemptions are not automatically granted, and you generally must submit an application to receive your exemption. Check with your county’s appraisal district to learn more about the local qualification process. 

Local Property Tax Rates

The amount of property tax you owe depends not only on the value of your home but also on the local property tax rates set by taxing units such as counties, cities, school districts, and special districts. Once every property in the county has been appraised, the appraisal district sends a list of property values to each local taxing unit. The taxing unit will then establish the budget for its operations in the upcoming year and calculate the property tax rates necessary to bring in the money it needs. 

Property Tax Billing

Once the property tax rate for a local taxing unit is set, your property tax bill for each local taxing unit is calculated by multiplying your home’s appraisal value (minus any exemptions) by the property tax rate for that taxing unit. Most properties will be taxed by several taxing units.

In some counties, you will be billed separately by each taxing unit. However, taxing units in many counties have contracts with the county tax assessor-collector or the county appraisal district to levy and collect property taxes on their behalf.

When Does Property Tax Change? 

You will be assessed property taxes each year, and the amount you owe often changes. There are two primary reasons your property tax bill may change:

• Your home’s appraisal value changed
• The tax rate changed 

For example, say your home was assessed at $150,000 last year. If the appraisal value increases to $160,000 this year, your property tax bill will rise if tax rates remain the same. Similarly, if your home appraisal value stays the same but the local property tax rate increases, you will owe more in property taxes. Often, there is a change to both your home’s appraisal value and property tax rates each year. 

The amount of property tax you owe may also change if you lose or gain exemptions, but this occurs less commonly. 

Can I Get My Property Taxes Reduced?

We know that receiving a higher-than-expected property tax bill can be infuriating, and many people believe that they have no say in the matter. Luckily, this is not true. If you think your house is worth less than the county appraisal district says it is worth, there are steps you can take to get your property taxes reduced. 

Texas law allows you to challenge your property’s appraisal value by filing a property tax protest if you think the appraisal district got it wrong. Many counties allow you to file a protest online, but you may need to submit a form to your county appraisal district’s office. 

Property tax protests are reviewed by an independent group of local citizens known as the appraisal review board (ARB). Each county has its own ARB to resolve disputes between property owners and the county appraisal district regarding property values and other related issues.

Once you file a protest, a hearing will be scheduled in front of the ARB. At the hearing, you or your legal representative will have the opportunity to present evidence to support your argument that the appraisal value of your home should be lower. The appraisal district will also be able to offer evidence that supports the original appraisal amount. 

After hearing each side’s arguments, the ARB will set a final appraisal value for your home. If your protest is successful, your home’s appraised value will be reduced, resulting in a lower property tax bill.

Succeeding in a property tax protest can be tricky, especially if you don’t have experience presenting arguments at hearings or determining the fair market value of real estate. Instead of taking on the appraisal district yourself, consider working with the experienced professionals at Property Tax Protest. We have been helping clients win protests for more than 20 years, and we know how to get your property taxes reduced. You can sign up with us today with no risk involved: you won’t pay a single cent unless we get you a lower property tax bill.

Even if the value of your property has not increased this year, it may still be worthwhile to consider protesting your property tax assessment in Texas. Here are some reasons why:

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• Assessments can be based on outdated information: The appraisal district may not always have up-to-date information on your property, such as recent renovations or changes in the local real estate market. If you have made improvements to your property or if the local market has changed, your property may be assessed at a higher value than it should be.
• Mass Appraisals:  The appraisal district uses mass appraisal techniques to place a value on large numbers of similar properties. It doesn’t appraise each property separately.  Yours may differ from the others in significant ways that can be used to seek a lower market value.
• Zero risk: The worst outcome of protesting your property when there hasn’t been an increase is that your value will remain the same. Property Tax Protest doesn’t charge any up front fees and if there’s no reduction there’s no fee.
• Errors and inaccuracies: Errors and inaccuracies in the assessment process can result in an incorrect assessed value, even if the value of your property has remained steady. For example, if the appraisal district has included an incorrect square footage measurement or mistakenly identified features of your property, this can result in a lower market value.
• Potential tax savings: Even if the value of your property has not increased, a successful protest can still result in a reduction in your property taxes. By lowering your market value, you may be able to save money on your tax bill.

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It’s important to note that protesting your property tax assessment can be a complex process, and success is not guaranteed. However, if you believe that your market value is incorrect or that there are errors in the assessment process, it may be worth considering a protest. You can contact your local county appraisal district for more information on the protest process and deadlines. Additionally, you may want to consider working with a property tax consultant or a tax professional who can provide guidance and assistance throughout the protest process.

In Texas, a property tax protest is a process where property owners can dispute the appraised value of their property, which is used to calculate the property tax they owe. The property tax protest allows property owners to challenge the value assigned to their property by the local tax appraisal district, with the goal of reducing their property tax burden.

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Property owners in Texas typically receive their property tax appraisal notice in the mail each year, which contains the appraised value of their property as determined by the appraisal district. Property owners have the right to protest this value if they believe it is too high, and they can do so by following the procedures set out by the appraisal district.

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To begin the property tax protest process, property owners must first file a written notice of protest with the appraisal district within a certain time frame after receiving their appraisal notice. This notice should include the reason for the protest, such as errors in the appraisal or the property’s condition, and any evidence that supports the owner’s claim.

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The appraisal district will then schedule a hearing to consider the property owner’s protest, at which the owner can present their evidence and argue their case for a lower appraised value. If the owner and appraisal district cannot reach an agreement, the owner may be able to pursue further appeals through the court system.

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Overall, a property tax protest in Texas is a way for property owners to challenge the appraised value of their property and potentially reduce their property tax burden.

Here are some steps you can take to protest your property tax assessment:

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Check your property tax assessment to make sure it is accurate. Make sure that your property’s value is not overestimated, and that any exemptions you are entitled to are applied.

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• Gather evidence: Collect evidence that supports your claim that your property’s assessed value is too high. This could include recent appraisals, photos of the property, and information about comparable properties in your area.
• File a protest: File a protest with the Dallas Central Appraisal District (DCAD) by the May 15th deadline. You can do this online or by mail. In your protest, explain why you believe your property’s value is incorrect and provide any evidence you have.
• Attend a hearing: After you file your protest, the DCAD will schedule a hearing to review your case. Attend the hearing and present your evidence to the review board.
• Receive a decision: The review board will make a decision about your case and will send you a notice of their decision. If they decide to lower your property’s assessed value, your property taxes will be adjusted accordingly.

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Keep in mind that the process for protesting your property tax assessment can be complex, so you may want to consider working with a tax professional or a property tax consultant to help you through the process, like us. After spending less than 3 minutes signing up with us, we will handle every step from start to finish, and at no risk to you. We only charge for a successful reduction.

Protesting your property’s market value to the Appraisal Review Board (ARB) each year, regardless of whether you believe your assessed value is accurate or not, can have several benefits:

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• Protection against errors: The ARB is responsible for reviewing property tax assessments and correcting errors. By protesting each year, you can ensure that your assessment is reviewed for accuracy and errors are corrected.
• Keeping up with changes: Property values can change from year to year, and the assessed value of your property may not always keep up with those changes. By protesting each year, you can ensure that your assessed value accurately reflects the current market.
• Potential tax savings: Even if you believe your value is accurate, a successful protest can still result in a reduction in your property taxes. By lowering your market value, you may be able to save money on your tax bill.
• Keeping your options open: If you decide not to protest in a given year, you may lose your ability to protest that value in the future. By protesting each year, you can keep your options open and ensure that you have the ability to protest if you believe your assessed value is incorrect in the future.
• Encouraging fair assessments: By protesting each year, you can help ensure that the assessment process is fair and that all property owners are treated equally. This can help promote transparency and accountability in the assessment process.

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It’s important to note that the property assessment and protest process can be complex, and success is not guaranteed. However, by protesting each year, you can help ensure that your assessed value is accurate and potentially save money on your property taxes.

Homeowners face an uphill fight at the Appraisal Review Board again this year.  In a market like 2023 where prices are no longer rising and may be on a down slope you will need more than backward looking comparable sales to achieve the current value you’re entitled to and the savings you deserve. You will also need Inequality of Appraisal.

Inequality of Appraisal (comparable assessments) is as important this year as in any of the twenty-three years Property Tax Protest has represented owners. The appraisal proposes values as of January 1. It uses comp sales from the prior year when values were rising. But last year’s values don’t do justice to this year’s. That’s why protesters will need to use all the tools available to them. (continuation from existing website). Homeowners can expect better results if they include Unequal Appraisal (comparable assessments) as one basis for their protest rather than citing only Value Over Market (comparable sales).  But most protests overlook Inequality.

When successful Inequality always results in an assessment below market because it’s applied after market value is determined by the ARB.  But it’s complex and requires good supporting data.

What is the Inequality argument?

Greatly oversimplified, Inequality is the argument that your property is appraised unequally to your neighbors. Suppose that a representative sample of properties similarly situated to or of the same general kind or character as yours is appraised at 90%, 92% and 98% of their true market values.  You are entitled to an 8% discount below the market value ordered by the ARB.

Section 41.43 (b):   “A protest on the ground of unequal appraisal of property shall be determined in favor of the protesting party unless the appraisal district establishes that:

(1)  the appraisal ratio of the property is equal to or less than the median level of appraisal of a reasonable and representative sample of other properties in the appraisal district;

(2)  the appraisal ratio of the property is equal to or less than the median level of appraisal of a sample of properties in the appraisal district consisting of a reasonable number of other properties similarly situated to, or of the same general kind or character as, the property subject to the protest; or

(3)  the appraised value of the property is equal to or less than the median appraised value of a reasonable number of comparable properties appropriately adjusted.

(c)  For purposes of this section, evidence includes the data, schedules, formulas, or other information used to establish the matter at issue.”  (Emphases added)

Two of the three tests rely on appraisal ratios and one on value appropriately adjusted.

Why Property Tax Protest

You must demonstrate that the sample properties are appraised below their market values.  It’s the opposite of what you demonstrate to reduce your own property’s proposed market value.

The Texas State Comptroller instructs the ARB to focus on three key pieces of evidence:

1. Is the number of properties selected for the sample reasonable?

2. Is each of the properties comparable to the subject property?

3. Was the value of each property appropriately adjusted by reference to the subject property?

These are complex arguments that are beyond the abilities of most owners and many consultants.  We’ve been doing it successfully for many years.  We can do it for you.

From the Code:  Section 41.43. (c)  “For purposes of this section, evidence includes the data, schedules, formulas, or other information used to establish the matter at issue.” You can’t just make the argument.  You need good data well presented.  It’s what we do.

Inequality is a statistical, not a market based, argument.  The property being protested may already be appraised at market.  The remedy is a percentage reduction in the property’s market value.  The possibility of a lawsuit places the district at a disadvantage because (1) the protesting party can usually obtain counsel on a contingent fee basis while the district cannot and (2) the losing party pays the winning party’s fees.  The threat to the district’s budget is an incentive to settle especially in the higher values.  A settlement costs the district nothing; the cost is passed on to other taxpayers who did not protest.

Conclusion

Successful inequality protests always result in an appraised value below market because the discount is applied to market value.  Thus, they support other inequality protests in the following year.