FAQ

Like most folks, you wont just go represent yourself in court, you’d most likely hire a skilled attorney who has extensive knowledge of the laws. This would of course increase your chances of winning. So why take your chances taking on the tax appeal process on your own? Our team is equipped with tools and knowledge that allows us to achieve greater results. There is also power with numbers that we can use at leverage during our appeal negotiations stage.

The statutory deadline to file a protest is May 15^th, or 30 days after the Notice of Appraised Value is issued, whichever is later per Sec. 41.44 (a)(1) of Texas Property Tax Code. Additionally, if May 15th falls on a weekend or holiday, the deadline is pushed to the next business day.

The truth is that the appraisal district does not have the manpower to individually appraise each property within its jurisdiction, which often results in unequal appraisal. The income approach is the most used method to appraise commercial property and property taxes is one of the highest expense line items in your P&L statement, reducing your net operating income. This has a direct impact on the sales price and marketability of the property.

Because of this, we strongly recommend contesting your property’s valuation to ensure at the very least, the county is not overstating their income and expense assumptions. Furthermore, we need to confirm that there is complete exclusion of any business value in the county’s valuation. Lastly, we need to make certain consideration is given to any deferred maintenance the property needs to sell at full market value.

This next point goes for both residential and commercial owners, it is very rare that the valuation set forth by the appraisal district has any affect on what you can expect to get out on the open market.

Our team performs an in-depth analysis and if we determine there is not a viable case after negotiating informally, we have the right to withdraw the appeal. We don’t withdraw many properties, but we may do so in unique circumstances.

This question usually pertains to properties with exemptions, more commonly the homestead exemption. In most cases, the assessed/appraised value is the market value less any exemptions. During a strong market when your market value exceeds a 10% increase, your assessed/appraised value includes the 10% increase cap. If the market value is not contested, you will see an annual increase in you assessed/appraised value until that value catches up to your market value less any allowable exemptions.

This is one of the most confusing concepts for taxpayers, which is we are here to help with any questions you may have. Feel free to contact us at any time.

The Texas Property Tax Code outlines specific guidelines that allow taxpayers to file a late appeal, please be aware that the likelihood of the success of these types of appeals are reserved for very specific situations.

25.25(d)

Over appraised by one-third of market value for non-homesteaded properties and one-fourth for homestead properties.

25.25(c)

1. Clerical errors that result in miscalculations or issues with exemptions (This can be reopen the appraisal roll for up to four tax years to correct a clerical error)
2. multiple appraisals of a property in that tax year.
3. the inclusion of property that does not exist in the form or at the location described in the appraisal roll; or
4. an error in which property is shown as owned by a person who did not own the property on January 1 of that year.

Each of these types of cases we take on, are unique. If you believe this can apply to your case, contact us for a free consultation.

INCORRECT! Residential properties with the homestead exemption in place are capped to a 10% annual increase on their tax bill. However, the market value has no limit on any one-year increase.

For Example, let’s say your home was assessed at $500,000$ last year and your market value increases by 30% and is now at 650,000$. Assuming your market value remains unchanged for the next 3 years, this is how you can budget for the next several years.

There will be an annual 10% tax bill increase until your assessed/taxable value equals the market value. Even though it is true that your homesteads annual tax bill is capped, it is still important to protest your market value when you experience a large increase, or else it will start to compound quickly.

Contact us today to have us protest your market value each year.

During a fee appraisal, an independent appraiser inspects the subject property, considering all three valuation approaches: sales comparables, income and replacement cost. The analysis is performed specifically for the subject property.

On the other hand, mass appraisal, is the process by which large volumes of properties are appraised by the central appraisal district to determine how much to increase or decrease property values in an area. A universe of properties are valued on a given date, utilizing standard methodology and common data. In summary, a mathematical model based upon a database of market conditions is created to determine your assessment value.

Due to this reasoning, banks do not consider appraisal district values to lend for any type of real estate loan, and require a fee appraisal.

A homestead exemption lowers your taxable value removing part of the value of your property from taxation, thus lowering your property taxes. Each jurisdiction reserves the right to determine its allowable exemption amount.

For example, if your home is valued at $250,000 and you qualify for a $25,000 exemption, you pay taxes as if it was worth $225,000.

To qualify for this exemption, the property must be considered your primary residence. An applicant is required to state that he/she does not claim an exemption on another residence homestead in or outside of Texas.

The Homestead Cap is an extra benefit of the general homestead exemption. The “Cap” limits increase in appraised/taxable values for homestead properties. The Homestead Cap applies to your homestead the second year that you have a homestead exemption. If you qualify, your taxes calculated on the appraised value cannot exceed the lessor of; the years market value or last years appraised value plus 10%. Keep in mind that any new improvements made on your residence will be excluded from the cap.

To file for a homestead exemption, you will need to submit an application and the required documents with the appraisal district where your property is located. You will need a Texas drivers license or state issued ID that matches the address of the property. The completed application is due no later than April 30th of the tax year for which you’re applying.

For more detailed info from our team on how to file your homestead, visit our blog.

A good rule of thumb is, if a buyer would require you to fix it or could negotiate a lower purchase price because of the repair then the answer is yes, absolutely. These are usually repairs such as A/C, plumbing, electrical, structural issues, foundation, or roofing.

We try our hardest to put a monetary value for those repairs, but always recommend getting some quotes done. This is usually the most accurate way to get the most out of deferred maintenance. It is important to note that any work already done to the repairs before January 1^st of the appeal year will not be factored in.

We have an easy and efficient process to collect any information you wish to share with us that will help your appeal. We ensure that everything you provide will be utilized in the appeal if it is helpful to our case. Contact us today to get you started with our services.

Yes, only for situations which we recommend. When we recommend Judicial Appeal to a client, we are very confident in our ability to reduce an appraised value further than what was achieved in the informal or formal ARB hearing.

The timeline and procedures are very important on our end when proceeding with Judicial Appeal. In order to file litigation in District Court we must first attend an ARB formal hearing, receive the paperwork that we did so from the CAD, and then file suit within 60 days of receiving that paperwork. Litigation is generally reserved for properties in excess of $5 million and the value is discrepancy is more than $100,000. However, in some counties that we do not strategically see Binding Arbitration as the best option, we may recommend litigation for properties above $500,000. We are always thinking of the economic benefit for the client, calculating the realistic savings in taxes along with the filing fee hard cost.