Appealing your Property Tax Assessment

 

All too often we run into situations where properties owners are being assessed property taxes based on a valuation that exceeds the market value of their home or commercial property. Some are unaware that they can appeal their property valuation others are so busy with other priorities they just never get around to appealing their assessed value.

The amount you can potentially save by successfully appealing your property tax assessment will vary depending on your county, property value, and value versus assessment variance. As a general rule of thumb, property owners can expect to save 2% on every dollar or $20 per $1,000 of successful appeal .

If you believe that your property is over assessed, contact your tax assessor or a qualified property tax consultant to better understand your options and likelihood for a successful appear.  Detailed below is an overview of your rights and responsibilities as a property owner and the property appraisal process within most Texas Counties:  

How does the system work?

There are three main components of the property tax assessment process in Texas:

• Every county has an appraisal district that sets the value of your property each year. A chief appraiser is the chief administrator.
• An appraisal review board (ARB) settles any disagreements between you and the appraisal district about the value of your property.
• Counties have multiple local taxing units, which include the county, city, school district, and special districts, decide how much money they will spend. The budgets of these entities determines the total amount of taxes that you and your neighbors will pay.

There four basics stages of the process: valuing the taxable property, protesting the values, adopting the tax rates, and collecting the taxes.

Most Appraisal Districts kick off their valuation process January 1 of each year.  What a property is used for on January 1, market conditions at that time, and who owns the property on that date determine whether the property is taxed, its value, and who is responsible for paying the tax.

If is important that you submit your request tax exemptions, agricultural appraisals, and other tax relief between January 1 and April 30.

Beginning around May 15, the appraisal review board commences hearing protests from property owners who believe their property values are incorrect or who did not get exemptions or agricultural appraisal. You have the right to represent yourself at these hearings or can engage the services of a qualified property tax consultant. The ARB is an independent panel of citizens responsible for handling protests about the appraisal district’s work. When the ARB finishes its work, the appraisal district gives each taxing unit a list of taxable property.

In August or September, the elected officials of each taxing unit adopt tax rates for their operations and debt payments. Several taxing units tax your property. Every property is taxed by the county and the local school district. You also may pay taxes to a city and to special districts such as hospital, junior college, water, fire, and others.

Tax collection starts around October 1 as tax bills go out. Taxpayers have until January 31 of the following year to pay their taxes. On February 1, penalty and interest charges begin accumulating on most unpaid tax bills. Tax collectors may start legal action to collect unpaid taxes on February 1.

What is your role and options as a Tax Payer?

You can play an effective role in the process if you know your rights, understand the remedies available to you, and fulfill your responsibilities.

Property owner rights:

• You have the right to equal and uniform tax appraisals. Your property value should be the same as similar properties.
• You have the right to have your property taxed on its market value or its agricultural or timber value if it qualifies.
• You have the right to receive all tax exemptions or other tax relief for which you qualify and apply timely.
• You have the right to notices of changes in your property value or in your exemptions.
• You have the right to know about a taxing unit’s proposed tax rate increase and to have time to comment on it.

The appeal process:

• If you believe your property value is too high, or if you were denied an exemption or agricultural appraisal, you may protest to the ARB. If you don’t agree with the review board, you may take your case to court.
• You may speak at public hearings when your elected officials are deciding how to spend your taxes and setting the tax rate.
• You and your fellow taxpayers may limit major tax increases in an election to roll back or limit the tax rate.

Property owner responsibilities:

• You must apply for the general, over-65, disabled, or any local-option homestead exemptions before the deadlines in the appraisal district where your property is located. If your property is located in a taxing unit that overlaps into two or more counties, you need to apply in each county appraisal district.
• You must apply for other exemptions, agricultural appraisal, and other forms of tax relief before the deadlines.
• You must see that your property is listed correctly on the tax records with your correct name, current address, and property description.
• You must pay your taxes on time.