Appealing taxes for your home - The Basics
Below is a MRR and PLR article in category Finance -> subcategory Taxes.
A Guide to Appealing Property Taxes in Texas
Save on Your Home Expenses
Texas homeowners face an average annual property tax of about $3,600. However, by reviewing and appealing property taxes each year, they can potentially reduce this significant expense. While success isn't guaranteed, a survey by O'Connor & Associates reveals that 70% of appeals succeed.
Understanding Property Taxes
Typically managed by mortgage companies, property taxes can become a hidden expense. Homeowners pay a combined amount for taxes and insurance monthly, but the specific tax component might only become evident if a deficit arises in the escrow account.
Why Don't More Homeowners Appeal?
Despite the high success rate, only 7% of homeowners appeal annually. The main reasons include:
1. The process seems daunting.
2. Doubts about success.
3. Belief that the home's assessed value is fair.
4. Lack of awareness about appealing unequal appraisals.
5. A busy lifestyle and the belief that "you can't fight city hall."
The Benefits of Appealing
For instance, if your $150,000 home's assessed value is reduced by 5%, you could save $225 on taxes. With appeal hearings generally lasting under an hour, the savings for your time are significant. Regularly appealing may also help you maintain a lower assessed value than your neighbors. Most appeals are resolved at the initial informal hearing.
Steps to Appeal Your Property Taxes
1. File a Written Notice: Send a notice to the appraisal review board (ARB) in your county before May 31st. This applies even without receiving an assessed value notice. Reasons to appeal annually include potential mail issues, minor value increases, and yearly appeal opportunities.
2. How to File: Use the Comptroller’s form at www.cutmytaxes.com or send a letter to the ARB, specifying your property and the appeal basis. It's advisable to appeal on both market value and unequal appraisal grounds.
3. House Bill 201 Request: Submit a request to the chief appraiser for data they plan to use at the hearing. This data is affordable and can limit what the appraisal district can present, giving you an advantage.
Why Use House Bill 201?
House Bill 201, part of the Texas Property Tax Code, mandates the chief appraiser to inform property owners about the data they will use at hearings. This provision, added in 1991, has been underutilized, and some appraisal districts still neglect it. However, it offers several benefits:
1. Access to crucial data about your property's market value and unequal appraisal.
2. Insight into the appraisal district's information on your home.
3. Minimal cost.
4. Knowledge of the data your opponent will use.
5. Restriction on the appraisal district's use of data not shared in advance.
6. A possible default win if required data isn't provided.
7. Often supports a lower valuation.
Preparing for the Hearing
Once you receive the information, check the appraisal district’s description of your home for accuracy, particularly the year built and property amenities. Any overstatements can be grounds for reducing your property taxes.
Filing a 2525c Appeal
If the district overstated your property size by over 5-10%, consider filing a 2525c appeal to adjust the assessed value for both the current and previous years.
For further details on preparing for the hearing process, visit [O’Connor & Associates](http://www.poconnor.com).
You can find the original non-AI version of this article here: Appealing taxes for your home - The Basics.
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