Property tax binding arbitration

When filing a property tax appeal you must have come across the word binding arbitration, but what is it all about. This article is all about it. Get to know what binding arbitration is, how to qualify for it, the arbitration rules, and a lot more.

What is binding arbitration?

It is nothing but an alternative to filing an appeal of the ARB decision to the district court. An arbitrator listens to the facts of your appeal and takes a decision accordingly.

How to qualify for binding arbitration?

Property owners can request for a binding arbitration only if the property is real or personal property. To qualify you must first file the Form AP-219, request for binding arbitration form along with the deposit payable to the comptroller’s office. This must be done within 60 days, from the time you receive an ARB order of determination.

The process

Once you submit the form, the appraisal district reviews the application and forwards the same along with the deposit made to the comptroller’s office within 10 days. An arbitrator is then appointed by the comptroller’s office to listen to your dispute. In the hearing property owners present their case and the county appraisal district will present the ARB case. Time constraints are less when compared to that of an ARB hearing and hence, you can take your time to lay out the entire case. Make sure you prepare and bring evidence along that explains why the value you mention is more appropriate than that of the ARB. Property owners also have the option to bring along with them an attorney, CPA, or even hire a property tax consultant to attend the hearing on your behalf or with you. If it is is the first time you are filing a binding arbitration then having a property tax consultant along is considered a better choice. The arbitrator takes into consideration all the information you present and notifies about his decision at a later date.

The value is either reduced or left the same as the ARB value. If you win it means the value is closer to what you had determined. If you win the case you will be refunded with $50 and the remaining arbitration fee will be paid by the county appraisal district. The arbitrator’s decision is considered final. Get to know in detail about binding arbitration here.


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