One of your most important rights as a taxpayer is your right to protest your property taxes. If you are dissatisfied with the value of your property, you have the right to protest your property taxes. Depending on the type of the property, you may be able to appeal to the state’s district court in the county in which your property is located.
Real and personal property taxes can be a financial burden for most of the business owners in Texas. Over 50 percent of all state and local tax revenue comes from property taxes, because Texas has no income taxes. However, with intervention, this can be reduced.
Reasons Why You Should Protest Your High Property Taxes
The 2021 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..
- 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.
- Reasonable people can disagree on value.
- Appraisal districts use mass appraisal models that depend on accurate property data for all 20,663,600 parcels in Texas and accurate value and adjustment factors for cost, depreciation, etc.
- You cannot get the hearing evidence package unless you protest.
- There is no cost to protest.
- You can protest every year regardless of whether the appraisal district raised, lowered or did not change the value.
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
For each property, the appraisal district in your county will have a record card. The card contains lot size, building size, amenities and much more information. To get the complete record of your property, you will need to go to the district office and so you will be having a nominal charge.
Step 3. Establish Property Value
When granting reductions in property tax assessments, to determine the market value, there are three different approaches in the Texas appraisal district. Those approaches are,
- Sales comparison approach
- Income approach
- Cost approach
In addition, to recognize the Uniform and Equal Approach (unequal appraisal) to value the property as provided in the Texas Property Tax Code, the recent court rulings have paved the way.
Step 4. Journey through the Legal Avenues
Once the protest has been filed, you will be notified of a date and time to attend a hearing. The hearing will be conducted with an appraiser at the appraisal district office. At its conclusion the appraiser will notify whether he can or cannot make an adjustment or he will offer to settle by establishing lower assessments.
Thus, there are four steps to reduce your property value annually.