25 Reasons You SHOULD Protest Your HIGH Property Taxes…
Twenty-Five Reasons Why Texans Should Protest Property Taxes Annually
◦ 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. ◦ Property tax is ad valorem. Ad valorem means based on value. So, you eventually get to pay the right value for your property as tax. ◦ Reasonable people can disagree on value. ◦ Subjective valuation factors include quality of construction, condition, upgrades if any, etc.
Twenty-Five Reasons Why Texans Should Protest Property Taxes Annually ◦ You can protest market value and unequal appraisal. ◦ You can also protest any action of the appraisal district or the appraisal review board that applies to the and negatively effects the property owner. This could include errors in grade, class, flood status, property type, and other factors. ◦ The combination of iffy noticed values and large volumes of property tax protests improve settlement circumstances. ◦ The number of appeals in 2018 (1,809,439) was much larger than the number of appraisers hired by appraisal districts (2,221). On average, each appraiser is involved in 814 settlement attempts during a 3 to 6-month period. ◦ In Texas statewide in 2018, 59% of property tax protests were resolved in the informal hearing process, with 80% of these settlements involving a reduction in value.
Twenty-Five Reasons Why Texans Should Protest Property Taxes Annually ◦ In Texas statewide in 2018, 59% of property tax protests were resolved in the informal hearing process, with 80% of these settlements involving a reduction in value. ◦ The results were about 50/50 at the appraisal review board (ARB). Of the 418,000 ARB hearings in 2018, 223,000 involved a reduction or 53%. ◦ Whether you settle at the informal or continue to the ARB, your chance of success is 53 to 80%! Those are excellent odds. And you can and should do this every year. ◦ Assume a $300,000 home, a 4% reduction and a 2.7% tax rate yields $324 in year one tax savings. Final value $288,000. ◦ Next year the appraisal district does not revalue; value remains at $288,000. Taxes are starting at $324 less than last year and you can still protest.
Twenty-Five Reasons Why Texans Should Protest Property Taxes Annually ◦ Next year’s value is increased to $350,000, a shocking increase. Your maximum assessed value is now $316,800. Without the appeal two years ago and a base of $300,000, the maximum assessed value would be $330,000 ($300,000 x 110%). ◦ You can obtain a FREE hearing evidence package from the appraisal district. Starting in the 2020 tax year, the appraisal district has to mail it to you without cost, even if it is available on their website. ◦ Requesting this free hearing evidence package limits what the appraisal district can present at the ARB hearing. ◦ If you are over 65, you should protest for two reasons: 1) it affects your city, county and MUD assessments. The ISD (school) property taxes are frozen when you turn 65; but not the county, city, and MUD. Reason 2) It helps to avoid having unreasonably high tax assessments in the area. Accounts that are never appealed can become local outliers providing fodder for the appraisal district in arguing higher values for your neighbors because your value is excessive. ◦ Some years the appraiser at the informal hearing will be open-minded and focused on finding a win-win settlement. Other years it will be virtually impossible to settle at the informal hearing regardless of the quantity or quality of evidence due to an intransigent and inflexible appraiser.
Twenty-Five Reasons Why Texans Should Protest Property Taxes Annually
◦ Same for the appraisal review board. Some years will be reasonable. However, there are appraisal review board panels in some areas that vote for the appraisal district 99% of the time; two of these adjacent to Harris County. This is true. If you want a real-life “Twilight Zone” experience, spend an hour or a day with us at one of these biased ARB panels. The new staff is shocked beyond belief that an ARB panel votes with the appraisal district in every hearing unless the appraisal district appraiser recommends a reduction. ◦ The hearing evidence provided by the appraisal district will in some years provide everything you need to support a meaningful reduction. ◦ However, in other years the hearing evidence will appear to provide a case without hope; all the sales are higher than your property. But you can still appeal on unequal appraisal. ◦ You cannot get the hearing evidence package unless you protest. It is the law. ◦ You do not know the contents of the hearing evidence package and whether it is helpful until you protest.
◦ Why O’Connor? ◦ Please let O’Connor do the work for you. Don’t try to guess which years will be successful. We can’t do it and don’t believe it is possible for you to do it. All 40+ of our property tax consultants agree with the need to appeal annually. ◦ O’Connor brings a team of over 100 professionals with over 500 combined years in property tax consulting. Our “Core Focus” is improving the lives of property owners through cost-effective tax reduction. ◦ Your interests are aligned with our interests. We don’t get paid unless we reduce your property taxes. ◦ O’Connor is passionate about what we do and clearly more aggressive than any other property tax consultant in pursuing all levels of appeal. ◦ You can protest on your own and this website provides all the tips and tricks of the process. However, most owners do not protest consistently (every year). This sharply diminishes the effectiveness since you never know which years will be good. You can also get our book Cut Your Texas Property Taxes, by Patrick O’Connor, by emailing fchiaravallo@poconnor.com.
You do not have to hire us to protest your property taxes to be effective. However, you do have to protest annually on market value and unequal appraisal to be effective.
Thank You
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