Because Texas property laws change periodically, information in this blog may no longer be accurate. Visit https://comptroller.texas.gov/ for the most up-to-date tax laws, policies, and procedures.
It’s never fun paying taxes, even when correctly appraised. It’s even harder when you feel that some mistake has been made by the Appraisal Review Board (ARB).
Consequently, as a homeowner, you’re likely to pay more taxes than what is fair at some point. That’s a reason to protest your tax appraisal in Texas. Statistics from Bexar County in Texas reveal that about 90% of tax protests are usually successful, and across the state, those who protested typically save an average of $527. Even better, a professional tax protest company can do it for you, so you hardly lift a finger.
Before you protest your tax appraisal, you should be aware that there are no state-wide property taxes in Texas, and the rules of protest may slightly vary from county to county. The tax you’ll eventually pay will depend on your county of residence, and just in case you didn’t know, Texas has 254 counties, more than any other state in the nation.
Also, it’s one thing to have a legitimate reason to protest your tax appraisal in Texas and quite another to follow the correct steps of lodging a tax protest. So, you’d need to make sure that you follow the correct procedure and have a valid protest ground.
So, what are the 4 top reasons to protest your tax appraisal in Texas?
#1. Overvaluation of Property Is a Valid Reason To Protest Your Tax Appraisal in Texas
Property taxes in Texas and almost anywhere else depend on the value of your property and the tax rate.
Let’s be honest. There’s nothing much you can do about the tax rate, unless you want to lobby your local representative to draft a bill or something on those lines. But there are reasons to protest your tax appraisal in Texas.
The person who’ll value your property in Texas is the county tax appraiser. The appraiser will value your property using market rates of similar properties in the area based on several variables.
After comparing the value attached to your property against similar properties, you may see that yours appears overvalued. It’s important to note that the value that the tax appraiser uses is based on market rates as of January 1.
Should you find gathering pricing information about your property to be a challenge, consider the following sources.
- A real estate broker
- A private appraiser who can value your property
If you’re completely stuck, you can get an appraiser from the Appraisal Institute. Should you find that the value the appraiser used is significantly different from what you think your property is worth, you’ll have a valid reason to protest your property tax.
Generally, property tax protests should be filed by May 15 or no later than 30 days after the appraisal district mailed a notice of appraised value to you, whichever is later.
#2. If There Are Mistakes in Your Tax Assessment
When you receive your annual tax assessment, review it thoroughly. Go to your county’s CAD website and ensure everything is correct. You may discover there are some errors in your tax assessment, giving you an excellent reason to protest your tax appraisal. Some of the mistakes in your tax assessment that can see you pay more to the tax authorities include:
- Errors regarding the size of your property: For instance, your 2,400-square-foot property may be assessed as 2,800 square feet.
- Errors regarding your land size: The larger the land size, the higher the tax assessed. Ensure the size of your land is not overstated.
- Errors regarding home improvements: Substantial improvements that increase square footage or livable space or require a building permit can increase a home’s value, resulting in higher property taxes.
Examples of significant improvements include adding an in-ground pool, garage conversions, detached garages or home additions. Minor home improvements like replacing a carpet or remodeling a kitchen do not increase the value of your property and will not affect your property taxes.
You should file a formal, written motion with the County Appraisal District to start the correction process. Do this before it’s too late to be admitted or corrected, making it imperative to have tax appeal deadlines for your county at your fingertips.
Related: Property Tax Appeal Deadlines
#3. Failure to Receive Notice
Your appraiser may fail to furnish you with certain notices that are required by Texas law. Some of these notices include:
- Notice of Appraised Value: This is a formal communication by the chief appraiser to the property owner notifying the owner of the increase in the property’s value from the previous financial period. It is usually mailed every year.
According to the Texas Tax Code, property owners with residential homesteads should receive this notice by April 1 or as reasonably possible. So if you failed to receive this kind of notice, you’d have a valid reason to protest your tax appraisal in Texas.
Still, the law requires the property owner to provide evidence that they failed to get the notice and that this failure was due to circumstances beyond their control.
- Notice of a Property Tax Hearing: The law requires the Appraisal Review Board to issue a written notice indicating the expected hearing’s time, venue, and date. According to the Texas Tax Code, this notice should be issued no later than the 15th day before the hearing.
- Notice of the Result of an Appraisal Review Board: The Appraisal Review Board should send written notice of the results of its hearing. Depending on the outcome of this communication, you can still protest in a court of law or through binding arbitration.
Related: Definitive Guide to Lower Your Property Taxes in Texas
#4. When the Chief Appraiser Has Valued Your Property Twice
While relatively rare, your property can be listed twice in the appraisal records. This can happen because of a clerical error or some other confusion.
For instance, the chief appraiser may send a Notice of Appraised Value to you under the name of John Cash. Two days later, you receive another notice of appraised value. However, the second notice now comes under the name of Johnny Cash. You realize that the property in question is the same.
What will happen in such a case is that you’ll be required to pay the exact property tax twice. This is another reason to protest your tax appraisal in Texas. But if you want to be proactive and help correct such mistakes promptly, you should be checking the appraisal records in your county to confirm that your property is listed correctly.
Do You Want to Make Sure You’re Not Paying a Dime Extra in Property Taxes?
While it’s a duty to pay taxes, you should only pay your fair share —and not a dime more. The extra savings, however little, can help plug a hole somewhere else.
While you can file the protest yourself, the tax code could be overwhelming, and the procedure tedious and time-consuming. Instead, many homeowners opt to hire an expert to handle it every year for them so they can concentrate on other issues without worrying if they’re paying the correct amount of tax.
At Home Tax Shield, hundreds of Texans trust us to handle their property tax protests. There’s a reason for this. Our success rate stands at an impressive 84%. We’ll protest your tax appraisal better and consistently year after year. You won’t have to worry about the overvaluation of your property or even appraisal deadlines. We’ll take care of everything for you. Sign up with us today and start the journey to potential tax savings and peace of mind.