How Does the Tax Appeal Process Work?

William Ryan Dec 09, 2021
3 min read
How Does the Tax Appeal Process Work?

Notice of Value: The Start of an Appeal

In Texas, property owners are issued annually a Notice of Value from the Central Appraisal District (CAD) where their property is located. These notices of value are the CAD’s determination of a property’s market value and will influence a property’s tax liability in the coming year. Taxpayers have the option to appeal this value if they believe it to be too high. To do this, taxpayers or agents must fill out Form 50-132 from the Comptroller’s Office and file it with the CAD that issued the Notice of Value before the indicated deadline. 

Informal Meetings and Appraisal Review Board Hearings

Following a successful filing of an appeal, the taxpayer is then able to meet informally with the CAD and attempt to reach a settlement. Reach out to your local CAD if you have filed a protest and ask for a time to meet informally. Most cases settle at this informal stage. If a settlement cannot be agreed upon with the CAD informally, the taxpayer and the CAD will then go before an Appraisal Review Board (ARB) for a hearing on the dispute. Both sides will present their case in a 15-minute hearing, and the Board will issue a decision.

Post ARB Hearing Options

Following an ARB hearing, taxpayers have yet another option to seek tax relief. If a taxpayer is not satisfied with their property’s value after an ARB hearing, the taxpayer may file a lawsuit against the CAD in court. However, it is important to note, litigation is only available to those that have “exhausted their administrative remedies” before filing to court. This means that a taxpayer can only file a lawsuit concerning their noticed value if they have filed an appeal and had an ARB hearing as stated above. Of important note, certain properties also qualify for arbitration with the CAD. This can be quicker and cheaper than litigation but requires certain, specific factors exist before taxpayers may seek relief in this manner. Please consult a Texas property tax expert in determining if your property qualifies for arbitration.

This process happens every year and many property owners have little understanding of this process and their rights. If you are a multifamily property owner in Texas, please reach out to one of our specialists so that we can help navigate you through this process and get you the tax relief you need.

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