 |
|
|
 |
|
|
||
|
Found Money: How to Protest Your Property Tax ValuationProperty owners in Texas pay property taxes each year that are approximately 3% of the value of the property, depending on its location. In the current economic climate, many taxing entities are looking to their local property taxes to offset significant downturns in their sales tax revenue. Consequently, property owners must be increasingly wary of the tax appraisal of their property and the tools they have to contest an inaccurate valuation. Section 41 of the Texas Property Tax Code gives taxpayers the right to protest the valuation of any property subject to taxation, including commercial, residential and business personal property. Lessees obligated to pay applicable property taxes are also given the right to protest, but only one protest per property is allowed (both the lessee and the property owner could not both bring a protest). The protest consists of a public hearing in front of three or more members of the appraisal review board. It may involve examination and cross-examination of witnesses, offering evidence, and arguments on the matters subject to the hearing. The statute requires that the hearing be as informal as practicable. In a protest, appraisal districts are given the burden of establishing the value of the property by a preponderance of the evidence presented at the hearing. The owner or owner's representative should come to a protest armed with as much data as possible to support the valuation he feels is correct. The factors generally considered by the appraisal review board include neighboring valuations and the sale of comparable properties. A protesting owner may introduce any evidence he chooses, but certain evidence may be more effective. Evidence of obsolescence, either external or functional, should be conveyed clearly and with statistics and/or photographs to emphasize the impact on the value of the property. External obsolescence are those factors which are beyond the owner's control, such as environmental, noise, poor access. Functional obsolescence stems from problems with a property that negatively impact its value, such as design flaws, lack of central air conditioning, or a lack of appropriate wiring. For example, if your property has a large, air conditioned space that cannot be leased, such as a waiting area or atrium, this unrentable square footage can be shown to diminish market value and increase operating costs, which will negatively impact its value. Once obsolescence or other defect has been established on the
property, the tax savings may be significant, and will continue each
year as long as the problem exists. For further information on this topic, please contact Matthew Marchant at matthew.marchant@strasburger.com or Beth Tiggelaar at beth.tiggelaar@strasburger.com.
|
|||
|
|
