It’s tax time again and soon you will receive your annual notice from the Bexar County Appraisal District setting the appraised value of your real estate property. For many this notice will prompt questions as to how, when, and where to protest appraised values. Fortunately, Texas law affords property owners the opportunity to protest the valuation of their real property. This article addresses the process, you, as a property owner must follow to protest the appraised value of your real property and therefore your ad valorem taxes.
To challenge the appraised value of your property, you must first file a written notice of protest with the Appraisal Review Board (the “ARB”). Copies of this form can be found at www.bcad.org, and is also typically enclosed with the notice of appraised value sent to property owners. The notice of protest form provides a checklist setting forth several grounds of protest concerning the valuation of your property (e.g., “value is over market” or “value is overpriced compared to other properties”). It is critical that you mark all possible grounds on the notice of protest form. Grounds of protest not raised before the ARB cannot be raised for the first time at the District Court level in the event of an appeal.
Deadlines, Deadlines, Deadlines. It is imperative that you strictly adhere to all deadlines when challenging your property appraisal. Failure to do so may result in the forfeiture of your right to a final determination of your protest. The last day to file a protest with the ARB for the current year is May 31st or 30 days after the date your notice of appraised value is mailed by the Appraisal District, whichever is later.
Notice of Hearing. After filing a notice of protest, a hearing will be held before the ARB. The ARB must provide you with at least 15 days notice of the date, time and place of the hearing. This notice may also contain a date and time that you can discuss the appraised value of your property informally with an appraiser. If you and the appraiser agree on the value of your property, you will not have to appear before the ARB. Otherwise, you must appear at your scheduled hearing to challenge the valuation of your property.
The Hearing. As a property owner, you are entitled to receive certain information from the Appraisal District prior to your hearing. Specifically, upon written request the Appraisal District is required to make available all evidence (e.g., data, schedules, formulas, etc.) it intends to present at the ARB hearing. This evidence must be made available at least 14 days prior to the scheduled hearing. If the Appraisal District fails to provide this information, you are entitled to object to the presentation of the evidence and to obtain a continuance. In addition, before the hearing, the parties must exchange copies of all written material, which will be submitted at the hearing. You may also petition the ARB to issue a subpoena requiring a person to appear before the Board and to produce documents. At the hearing, each party is entitled to offer evidence, present arguments and examine witnesses. Your attendance at this hearing, either in person or by written affidavit, is mandatory.
It is important to note that the Appraisal District has the burden of establishing the value of your property by a preponderance of the evidence. Texas law provides that if the Appraisal District fails to meet this standard, the protest must be determined in favor of the property owner. However, you should be prepared to present evidence in support of your proposed valuation at this hearing.
The ARB will make its decision by written order and deliver it to you by certified mail. The notice of the order must contain a prominently printed statement informing you of your right to appeal to the District Court. This statement must describe all applicable deadlines for filing a written notice of appeal and for filing a petition for review with the District Court.
Appeals to the District Court. You have the right to challenge the determinations of the ARB before the District Court. A lawsuit must be filed within 45 days of receipt of the Order from the ARB. The failure to file the lawsuit within this time period may deprive you of your right to the appeal. The petition for review must be brought against the Appraisal District, and it may also be brought against the ARB. Any party to an appeal is entitled to a trial by jury.
In the alternative, you may be able to file a request for binding arbitration within the time period provided above.
Tax Payments Pending Appeal. An appeal to the District Court does not remove your obligation to tender your tax payment by the delinquency date. Accordingly, you must tender acorrect tax payment or your lawsuit will be dismissed. It is recommended that you consult with an attorney concerning your tax liabilities and payment options during the pendency of appeal.
The information provided in this article is intended to provide you with a brief overview of the procedures to be followed when protesting the valuation of your real property. This article is not intended to be an exhaustive discussion regarding the protest of ad valorem taxes by property owners. It is highly recommended that you review the Texas Property Tax Code for additional information regarding your rights and responsibilities when protesting your ad valorem taxes. For more information, please consult an attorney or property tax consultant.
