By SABOR.com
Wednesday, 20 May 2009 13:45
How To Contest Your Property Taxes
No one looks forward to getting a property tax assessment in the mail. Texas places a heavy reliance on property tax and, as a result, has one of the highest property-tax rates in the nation. As we do during every legislative session, Texas REALTORS® support bills that make property taxes more fair and less of a burden on homeowners.
Now, high tax rates are one thing, but what if your bill is further increased because your property is assessed higher than its true value? What recourse do you have?
How property taxes are calculated
Property taxes have two main components: the tax rate and the assessed value of your home. The appraisal district is responsible for assessing the value of your property. Each local taxing authority—like the school district, the city, and the county—sets its own tax rate. The tax rate is expressed as a certain amount of tax per $100 of property.
So, for example, a tax rate of 47 cents per $100 on a property assessed at $150,000 would yield a tax of $705 for that taxing authority.
Other factors that affect your tax
The assessed value of your home may be reduced by certain amounts for each taxing authority, if you applied and qualify for any exemptions. Most property owners qualify for a homestead exemption on their primary residence. Other exemptions are available to people 65 and older and disabled veterans.
Another factor that may affect your property tax is the appraisal cap. Though the appraisal district attempts to appraise your property at market value, the maximum amount your assessed value can go up for taxation purposes is 10 percent per year. So, if your property was assessed at $100,000 last year, and the appraisal went up to $123,000 this year, your tax rate will be applied only to an assessed value of $110,000.
What if your assessment is out of line?
If you think your property-tax assessment is too high, you can protest it. But you need to act quickly. You must file written notice that you intend to protest your assessment by May 31 (or 30 days after the appraisal district mailed your appraisal if the notice was mailed after May 1). You will then receive notice of a hearing date at least 15 days in advance.
Protests are heard by the appraisal review board (ARB). The ARB is an impartial panel that listens to evidence from the property owner and the chief appraiser before making a decision on the protest. The key word here is evidence. Your chances for success are extremely poor if you simply state that your assessment is too high. Remember, too, that the appraisal review board has no role in setting tax rates or policy.
The following kinds of evidence can be effective during an ARB hearing:
•Proof that the appraisal district’s description or measurements of your property are incorrect
•Evidence of defects in your property or other conditions that would diminish its value
•Records or information that other similar properties in your area are valued lower than yours
Most appraisal districts post property records online, which makes it easy to research appraisals on other properties. Your San Antonio REALTOR® may also be able to help you gather information to assist your effort. If you support your case with information about recent home sales, sales closest to the beginning of the year work best. You should collect sales data on homes near yours that are comparable to your home in size, quality and age.
You might also benefit from an appraisal performed by an independent real estate appraiser.
Sometimes, discussing your concerns directly with the appraisal district will yield results. For example, if you bought your house close to the beginning of the year and the tax assessment is higher than your purchase price, you probably can get your appraisal lowered to your purchase price. Even if you plan to contact the appraisal district directly, you should still file your notice of protest in case you don’t come to a resolution.
What if you disagree with the ARB
After your ARB hearing, you will receive a copy of the panel’s findings by certified mail. If you disagree with the appraisal review board’s decision, you have 45 days to appeal the decision to a district court in the county where the property is located.
As an alternative, you have the right to appeal the board’s decision through binding arbitration.
For more information about contesting your property taxes, visit the Texas Comptroller's Web site at www.window.state.tx.us. For consumer-friendly information about real estate in the San Antonio area, I encourage you to visit SABOR.com
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