Appealing your Texas property taxes- The Basics

Property taxes are a substantial expense for Texasthe owner or the agent of the owner may inspect
homeowners, averaging about $3,600 annually. Toand may obtain a copy of the data, schedules,
reduce this expense, property owners should annuallyformulas, and all other information the chief appraiser
review and consider appealing property taxes. Whileplans to introduce at the hearing to establish any
there is no guarantee that an appeal will bematter at issue."
successful, a recent survey conducted by O'ConnorThe property tax code further provides the chief
& Associates indicates that 70% of property taxappraiser the right to charge up to $15 for each
appeals are successful.residence, and up to $25 for each commercial
Since the mortgage company typically dispersesproperty owner for this information. However, there
payments, property taxes tend to be a stealth tax.are limits on the cost per page an appraisal district
Although the homeowner writes a check, includingcan charge. Practically speaking, the maximum charge
taxes and insurance monthly, the property taxis $1 to $2 for a residence. In Harris County, most
component is not evident. The property taxhomeowners can print this information from the
component can become quite evident when theappraisal district's web site once an appeal has been
homeowner is asked to fund a deficit in the escrowfiled using the "I file" system.
account.This section of the tax code was added in 1991, but
Although 70% of property tax appeals aremany appraisal districts have attempted to ignore this
successful, only 7% of homeowners appeal eachsection of the property tax code for years and
year. Research indicates five primary reasonssome still do. After discussing this section of the
homeowners do not appeal:Texas Property Tax Code on a radio show in 2005,
1. The process seems overwhelming and they do notseveral listeners called back a week or two later to
know how to appeal,report certain appraisal districts were claiming to be
2. They do not think an appeal is likely to beunaware of this section. When O'Connor &
successful,Associates sent House Bill 201 requests to appraisal
3. They think their home's assessed value is belowdistricts in 2005, some called us and said "what do
market value and there is no basis for appealing,you mean you want our information, we plan to use
4. They do not understand they can appeal onyour information at the hearing to prove our value."
unequal appraisal,While these examples seem quaint and cute, it is
5. They are busy and do not want to set aside time,surprising that 15 years after taxpayer friendly
given the presumption that "you can't fight city hall".legislation has been passed, that appraisal districts are
Why appeal?still ignoring property owners and tax consultants
Consider an appeal for a $150,000 house where thewho ask for this information.
property taxes are reduced by 5%. This wouldThere are at least seven reasons to utilize House Bill
reduce the assessed value by $7,500 and the201 to obtain the information the appraisal district will
property taxes by $225, based on a 3% tax rate.use at the hearing:
Since the typical appeal hearing takes less than an1. It is an effective way to obtain information
hour, these are meaningful savings for the timeregarding both market value and unequal appraisal for
involved. Regularly appealing your property taxes willyour property tax appeal,
minimize the value, so you are assessed for less than2. You will receive the appraisal district's information
most of your neighbors. Most of the property taxregarding the size, condition and other qualitative and
appeals are resolved at the informal hearing, which isquantitative data for your house,
the first step in the process.3. The information can be obtained for a nominal
How to appealcost,
The first step to appealing annually is to send a4. It is helpful to know what information your
written notice to the appraisal review board (ARB)adversary will be able to use at the hearing,
for the county in which your home is located. Even if5. Making the request limits what information the
you have not received a notice of assessed valueappraisal district can present at the hearing. If you do
from the appraisal district, file a notice of appeal bynot request their information prior to the hearing,
May 31st for the following reasons:they can use any information available to them at
1. The notice of assessed value can get lost in thethe hearing. However, if you request the appraisal
mail,district information using a House Bill 201 request,
2. A notice of assessed value is not necessary unlessthey may only use information previously provided to
your assessed value increases by $1,000, andyou,
3. You should appeal annually6. If they do not provide you information on market
You can file a notice of appeal by utilizing thevalue or unequal appraisal in the House Bill 201
Comptroller's form available at or by sending a letterrequest, you win by default at the ARB hearing, and
to the ARB. The letter to the ARB simply needs to7. In many cases, the appraisal district House Bill 201
identify the property being appealed and the basisinformation clearly supports a lower value.
for your appeal. You should always appeal on bothPreparing for the hearing
market value and unequal appraisal. Since the appraisalWhen you receive the appraisal district House Bill 201
district staff is extremely busy during late May andinformation, start by reviewing the appraisal district's
early June, sending any data on the value of yourdescription of your home and ask yourself these
property tax is probably a waste of time. At thequestions:
same time you send your notice of appeal to the1. Is the year built accurate?
ARB, send a "House Bill 201" request to the chief2. Are the qualities and amenities accurate?
appraiser at the appraisal district. The House Bill 201If the appraisal district overstates either the quantity
request will provide you a volume of information at aor quality of improvements to your property, this is
modest price.an excellent means to reduce your property taxes
Reasons for obtaining House Bill 201 informationboth for the current year and subsequent years.
Since most homeowners are not familiar with HouseFiling a 2525c Appeal
Bill 201, you may be wondering what it is and when itIf the appraisal district has overstated the size of
became available. House Bill 201 is the term used byyour home by more than 5% to 10%, even if you
property tax consultants to describe provision 41.461did not file a property tax appeal in previous years,
of the Texas Property Tax Code. This section readsconsider filing a 2525c appeal. This will allow you to
as follows:reduce the assessed value of your property for the
"at least 14 days before hearing on a protest, thecurrent year and for prior years.
chief appraiser shall: ... inform the property owner that/article.asp?