| Property taxes are a substantial expense for Texas | | | | the owner or the agent of the owner may inspect |
| homeowners, averaging about $3,600 annually. To | | | | and may obtain a copy of the data, schedules, |
| reduce this expense, property owners should annually | | | | formulas, and all other information the chief appraiser |
| review and consider appealing property taxes. While | | | | plans to introduce at the hearing to establish any |
| there is no guarantee that an appeal will be | | | | matter at issue." |
| successful, a recent survey conducted by O'Connor | | | | The property tax code further provides the chief |
| & Associates indicates that 70% of property tax | | | | appraiser 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 disperses | | | | property 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, including | | | | can charge. Practically speaking, the maximum charge |
| taxes and insurance monthly, the property tax | | | | is $1 to $2 for a residence. In Harris County, most |
| component is not evident. The property tax | | | | homeowners can print this information from the |
| component can become quite evident when the | | | | appraisal district's web site once an appeal has been |
| homeowner is asked to fund a deficit in the escrow | | | | filed using the "I file" system. |
| account. | | | | This section of the tax code was added in 1991, but |
| Although 70% of property tax appeals are | | | | many appraisal districts have attempted to ignore this |
| successful, only 7% of homeowners appeal each | | | | section of the property tax code for years and |
| year. Research indicates five primary reasons | | | | some 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 not | | | | several 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 be | | | | unaware of this section. When O'Connor & |
| successful, | | | | Associates sent House Bill 201 requests to appraisal |
| 3. They think their home's assessed value is below | | | | districts 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 on | | | | your 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 the | | | | who ask for this information. |
| property taxes are reduced by 5%. This would | | | | There are at least seven reasons to utilize House Bill |
| reduce the assessed value by $7,500 and the | | | | 201 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 an | | | | 1. It is an effective way to obtain information |
| hour, these are meaningful savings for the time | | | | regarding both market value and unequal appraisal for |
| involved. Regularly appealing your property taxes will | | | | your property tax appeal, |
| minimize the value, so you are assessed for less than | | | | 2. You will receive the appraisal district's information |
| most of your neighbors. Most of the property tax | | | | regarding the size, condition and other qualitative and |
| appeals are resolved at the informal hearing, which is | | | | quantitative data for your house, |
| the first step in the process. | | | | 3. The information can be obtained for a nominal |
| How to appeal | | | | cost, |
| The first step to appealing annually is to send a | | | | 4. 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 if | | | | 5. Making the request limits what information the |
| you have not received a notice of assessed value | | | | appraisal district can present at the hearing. If you do |
| from the appraisal district, file a notice of appeal by | | | | not 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 the | | | | the 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 unless | | | | they may only use information previously provided to |
| your assessed value increases by $1,000, and | | | | you, |
| 3. You should appeal annually | | | | 6. If they do not provide you information on market |
| You can file a notice of appeal by utilizing the | | | | value or unequal appraisal in the House Bill 201 |
| Comptroller's form available at or by sending a letter | | | | request, you win by default at the ARB hearing, and |
| to the ARB. The letter to the ARB simply needs to | | | | 7. In many cases, the appraisal district House Bill 201 |
| identify the property being appealed and the basis | | | | information clearly supports a lower value. |
| for your appeal. You should always appeal on both | | | | Preparing for the hearing |
| market value and unequal appraisal. Since the appraisal | | | | When you receive the appraisal district House Bill 201 |
| district staff is extremely busy during late May and | | | | information, start by reviewing the appraisal district's |
| early June, sending any data on the value of your | | | | description of your home and ask yourself these |
| property tax is probably a waste of time. At the | | | | questions: |
| same time you send your notice of appeal to the | | | | 1. Is the year built accurate? |
| ARB, send a "House Bill 201" request to the chief | | | | 2. Are the qualities and amenities accurate? |
| appraiser at the appraisal district. The House Bill 201 | | | | If the appraisal district overstates either the quantity |
| request will provide you a volume of information at a | | | | or quality of improvements to your property, this is |
| modest price. | | | | an excellent means to reduce your property taxes |
| Reasons for obtaining House Bill 201 information | | | | both for the current year and subsequent years. |
| Since most homeowners are not familiar with House | | | | Filing a 2525c Appeal |
| Bill 201, you may be wondering what it is and when it | | | | If the appraisal district has overstated the size of |
| became available. House Bill 201 is the term used by | | | | your home by more than 5% to 10%, even if you |
| property tax consultants to describe provision 41.461 | | | | did not file a property tax appeal in previous years, |
| of the Texas Property Tax Code. This section reads | | | | consider 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, the | | | | current year and for prior years. |
| chief appraiser shall: ... inform the property owner that | | | | /article.asp? |