subject: Appealing your Texas property taxes The Basics [print this page] Appealing your Texas property taxes The Basics
When your property is under appeal the County Board of Taxation can adjust your home's value to the common level. The taxpayer should know the average ratio in the municipality where the property under appeal is located before filing a tax appeal. Remember the ratio changes annually on October 1, for use in the subsequent tax year. Also, remember this adjustment to the common level is not used in the year of revaluation or reassessment when all properties have been brought to 100% of market value.
House Bill 201 is the industry jargon for a property owner's option to request information the appraisal district will use at the hearing, and to receive a copy 14 days before the hearing. The name House Bill 201 is derived from the bill used to enact the law. The details for House Bill 201 are located in sections 41.461 and 41.67d of the Texas Property Tax Code. When filing a protest, the property owner should additionally request in writing that the appraisal district provide a copy of any information the appraisal district plans to introduce at the hearing. The appraisal district will typically require the property owner to come to the appraisal district office to pick up the information and charge a nominal fee, typically $0.10 per page. While the cost for House Bill 201 requests are quite low (typically $0.50 to $2.00 per property for residential and commercial) the information is invaluable in preparing for the hearing. In addition, filing a House Bill 201 request is important because it limits the information the appraisal district can present at the hearing to what was provided to the property owner two weeks before the hearing.
The ARB hearing panel consists of three impartial citizens selected and paid by the appraisal district. The age of most ARB members ranges from fifty to eighty. There is an unfortunate bias in the system since the ARB members are selected and paid by the appraisal district, but most ARB members are reasonable people who want to make appropriate decisions.
With property taxes making up such a large percentage of operating expense, a commercial property owner I know was recently pleased when his consultant informed him that the company saved over $123,000 in property taxes. Some owners will realize less savings than those, but every little bit helps your bottom line.
When you pay your taxes you should make sure to receive a receipt. This is needed for your tax records as well as showing proof of payment if the community would ever say you still owe money on your taxes After paying your property tax bill, you can then claim it on that year's tax return.
Contesting tax assessments requires time and patience. In most cases, homeowners must schedule an appointment with a property tax representative. Homeowners should always retain previous years' tax bills in order to compare previously reported information. If mistakes are discovered, adjustments are reflected in future tax bills as opposed to providing refund checks.
What goes into a property assessment? There are some guidelines assessors use when determining the value of your home. By being acquainted with these, you will be more likely to understand why your home has been given a certain value. Here are the most common benchmarks taken into consideration when determining a home's value.Sale price of similar properties in the area: the assessor will know how much other homes in your immediate area are selling for, and will assess your house to reflect the value of the neighborhood. Property's historical value: records of the property's value through the years will help the assessor determine whether the home's value keeps with current trends, and whether the home increases in value over time as a general rule.
The property tax code further provides the chief appraiser the right to charge up to $15 for each residence, and up to $25 for each commercial property owner for this information. However, there are limits on the cost per page an appraisal district can charge. Practically speaking, the maximum charge is $1 to $2 for a residence. In Harris County, most homeowners can print this information from the appraisal district's web site once an appeal has been filed using the "I file" system.
To figure out your annual taxes you multiple the tax rate by the assessed value. For example take the assessed value of $400,000 x .020 (tax rate/millage rate) = $8,000 in annual property taxes.
In case a bank fails to withhold enough funds to pay the property tax, then it is your responsibility to pay the deficiency. There are also instances when mortgage lenders will not include property taxes in the home loan. In such cases, you are required to make the payments directly to the local tax office.
