Property Tax In Texas – Steps to Protest and Reduce Your Property Value Annually

For Texas business owners, real and personal property taxes can be a financial burden. Texas has no income tax, so over 50 percent of all state and local tax revenue comes from property taxes. Local governments set tax rates, and business owners may find themselves taxed by several different agencies – the school district, city, county, hospital district, junior college district, and water district, among others. This implies large tax bills for businesses that own substantial real or personal property. However, with intervention, this can be reduced.

 Reasons You Should Protest Your High Property Taxes

The 2020 property tax season is quickly approaching. The following are reasons why an annual property tax appeal is necessary and tips on how to get the best reduction 

  • It is your money.
  • You can spend your money better than the government.
  • Property taxes are one of the most significant taxes for many Texas families. Texas has a high sales tax and no personal income tax.
  • Property taxes are the only tax that can be appealed on an annual basis.
  • People are the number one reason to protest your property taxes annually.

Steps to Protest and Reduce Your Property Value Annually

Step 1. File a Protest

Texas property tax appeals can be filed using the form provided by the appraisal district. You should indicate the basis is both assessed value over market value and equal appraisal. The deadline to file a protest is May 15, or 30 days after notice of your assessed value is mailed to you, whichever is later. Protest annually to minimize your property taxes.

Step 2. Research the Central Appraisal District’s Record Card

The appraisal district in your county has a record card for each property. This card contains many information such as lot size, building size, amenities, and much more. You will need to go to the district office to get the complete record card and there may be a nominal charge. However, you can probably review much of the basic information on the appraisal district’s website. 

Step 3. Establish Property Value

There are three different approaches in Texas appraisal districts that typically determine the market value when granting reductions in property tax assessments. Those three approaches are Sales Comparison Approach, Income Approach, and Cost Approach. In addition, recent court rulings have paved the way to encourage more districts to recognize the Uniform and Equal Approach (unequal appraisal) to value the property as provided in the Texas Property Tax Code. 

Step 4. Journey through the Legal Avenues

After filing a protest you will be notified of a date and time to attend a hearing. This meeting is conducted with an appraiser at the appraisal district office. At its conclusion, the appraiser will either indicate whether  he can or cannot make an adjustment, or he will offer to settle by establishing lower assessment. Thus, these are some of the steps to protest and reduce your property value annually.


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