Protesting Residential Property Appraisals

Darlene Sullivan, Gilbert Davila & Kevin Sullivan

Popp, Gray and Hutcheson, LLP

March 19, 2009

The Protest Process

Here is a quick overview of the legal aspect of the property tax appeal

process.

25.19 Notice of Appraised Value

Section 25.19 (a) By April 1 or as soon thereafter as practicable if the property is a single-family residence that qualifies for an exemption under Section 11.13 (Residence Homestead), or by May 1 or as soon thereafter as practicable in connection with any other property, the chief appraiser shall deliver a clear and understandable written notice to a property owner of the appraised value of the property owner’s property if:

(1) the appraised value of the property is greater than it was in the preceding year;

(2) the appraised value of the property is greater than the value rendered by the property owner; or

(3) the property was not on the appraisal roll in the preceding year.

41.41 Right of Protest

Section 41.41 (a) A property owner is entitled to protest before the appraisal review board the following actions:

(1) Determination of the appraised value of the owner’s property

(2) unequal appraisal of the owner’s property

(4) denial to the property owner in whole or in part of a partial exemption

(9) any other action of the chief appraiser, appraisal district, or appraisal review board that applies to and adversely affects theproperty owner.

41.412 Person Acquiring Property After January 1

Section 41.412 (a) A person who acquires a property after January 1 and before the deadline for filing notice of the protest may pursue a protest under this subchapter in the same manner as a property owner who owned the property on January 1.

(b) If during the pendency of a protest under this subchapter the ownership of the property subject to the protest changes, the new owner of the property on application to the appraisal review board may proceed with the protest in the same manner as the property owner who initiated the protest.

41.44 Notice of Protest

File your protest before May 1 or not later than the 30th day after the date that notice to the property owner was delivered to the property owner as provided by Section 25.19, if the property is a single-family residence that qualifies for an exemption under Section 11.13, whichever is later;

or

File you protest before June 1 or not later than the 30th day after the date that notice was delivered to the property owner as provided by Section 25.19 in connection with any other property, whichever is later

11.13 Residence Homestead

EXEMPTIONS:$3,000 of Appraised Value (County)$15,000 of Appraised Value (School District)If disabled or 65 or older:

$10,000 of Appraised Value (School District)

Section 23.23 Limitations of Appraised Values of Residence Homestead

Market Value10% of appraised value for the prior year

Application for Homestead Exemption

Section 11.43 File application before May 1File in each county the property is locatedOnce granted do not need to reapply, unless there is a change in ownershipLate application: Section 11.431

(a) The chief appraiser shall accept and approve or deny an application for a residence homestead exemption after the deadline for filing it has passed if it is filed not later than one year after the delinquency date for the taxes on the homestead.

Remedies

There are two main ways to argue your case

Market Value

Equal and Uniform

Market Value1.04 Definitions

(7) “Market value” means the price at which a property would transfer for cash or its equivalent under prevailing market conditions if:

(a) exposed for sale in the open market with a reasonable time for the seller to find a purchaser;

23.01 Appraisals Generally(a) except as otherwise provided by this chapter, all taxable property is appraised at its market value as of January 1.(b) The market value of property shall be determined by the application of generally accepted appraisal methods and techniques…The same or similar appraisal methods and techniques shall be used in appraising the same or similar kindsof property. However, each property shall be appraised based upon the individual characteristics that affect the property’s market value.

Site-Specific Issues

Verify the information the District has for your property

SizeYear BuiltSwimming Pool?

Condition of homeNeeded repairs

Get EstimatesPictures are worth1,000 words

Site Specific Issues (continued)

External influences can affect value

Determining Market Value

Know your marketTexas is a non-disclosure state

Finding sales to determine value can be difficultYour local realtor may be able to helpCurrent home listings can give you an idea about value

Realty websites are a good source of informationhttp://www.realtor.com/

Market Summary

Keep copies of any comparable listings

This will give you a date stampThe closer to January 1st the better

Having an idea about the market value of your house gets you a step ahead!

Equal and Uniform

Section 41.43Comparable criteria is important

Find houses in your neighborhoodKeep a narrow age rangeKeep a narrow size rangeSimilar features

www.bcad.org

Equal and Uniform Preparation

Equal and Uniform Grid

Summary

You know you property better than anyone. Let the District know what issues you have.Talk to a realtor and research the market.How do you compare to neighboring properties?

Before the Formal Hearing

You will have an opportunity to meet with an appraiser before your formal hearing

Arrive preparedYou may be able to settle!

Bexar County Appraisal District

Formal Hearing

Useful Websites

Bexar County Appraisal Districtwww.bcad.org

Texas Comptroller

www.window.state.tx.us/Realty Websites

www.realtor.comwww.sanantoniohomesearcher.com/San_Antoniowww.sanantoniohomesearch.com