Property Tax Protest Do’s and Don’ts

My research covers a wide variety of land- and property-related topics. When I’m out in the field talking with landowners, almost everyone has the same concerns about their property: Should I protest (or appeal) my property tax assessment? How do I protest my property tax assessment? What should I submit in my protest? What should I say?  

As you might have guessed, property taxes are important to Texans. 

As stated on the comptroller’s website, “One of your most important rights as a taxpayer is your right to protest to the appraisal review board (ARB). You may protest if you disagree with the appraisal district value or any of the appraisal district’s actions concerning your property.”  

I have worked in and studied the property tax systems of many states. In my opinion (and in that of many multi-state tax professionals), Texas has one of the most taxpayer-friendly property tax codes in the country. Still, we’re naturally intimidated by what we don’t know. Furthermore, not every assessor’s staff member or every ARB member knows or does the right thing every time, which leaves the taxpayer feeling helpless and confused. So, it is all the more important to understand your rights.  

‘Tis the Season 

Before we get into methods, let’s talk about timing. The annual deadline to file a protest is May 15th or 30 days following the assessment notice, whichever is later. If you are considering an appeal, you should file your protest form as soon as possible to protect or preserve your rights. If you miss the deadline, you lose your right to protest the annual assessment. So, even if you don’t know what your case will be but think you may have one, timely file the protest and submit or update your opinion of value and evidence soon. Then, as soon as practically possible, determine your position. If you decide the appeal is not worthwhile, withdraw your protest as soon as possible.

If you received an assessment notice, it likely came with a protest application. If not, you can find it () under the heading “Appraisal Review Board Protest” on the page referenced in the end notes below. Alternatively, check your assessor’s website for the option to file online. In section 3 of Form 50-132, notice that the first box allows you to protest based on market value “and/or” unequal appraisal (commonly referred to as “equity” or “uniform and equal” appraisal). This allows you to cover either or both bases, market and assessment factors and comparisons. For example, even if the appraised market value seems reasonable, you may take issue with how your assessed value compares to those of similar properties.

Build Your Case 

No one knows your property like you do, so think about what you know about your property, including your neighborhood, that the assessor may not know. 

Look at the Market  

Look at sales activity. Find recent sales prices of similar properties along with basic information such as lot size and square footage. Use sales that occurred closest to the assessment date, which is Jan. 1 each year.  

Don’t be afraid to ask your neighbors and friends, who may have recent knowledge of sales prices; maybe you can reciprocate. If you have a real estate agent, ask them if they would provide a list of recent sales comparables (aka “comps”).  Additionally, look online at list prices and time on the market. While list prices are not applicable as comps in an appraisal, they may help you set an upper limit on your opinion of value. For example, let’s say there are comps that have been on the market longer than usual, and let’s say the price has been reduced over time. That is a good indication that the market value is less than the list price as of the assessment date.  

Last year, I used the fact that two new homes, like mine, on our block had been listed for nearly two years with successive list price reductions and remained unsold. This illustrated market weakness and that market value was significantly less than we thought the year before.  

Look at Your property  

What about your property would you fix or change if you were going to list it for sale? Think about anything that needs repair that hasn’t been done yet (“deferred maintenance”). Make a list, take pictures of anything that, as is, would negatively affect the sale price. For example, any water damage, chipping paint, unusual or excess wear and tear, roof damage or a roof that may need replacement soon, evidence of foundation settling, cracks in the walls, doors that stick, outdated fixtures or appliances, etc. Get estimates for repairs not completed before Jan. 1, or receipts of repairs completed after Jan. 1. 

Prepare to explain anything about the property or the market that may cause it to be less valuable than it would be otherwise. This could include what appraisers refer to as “functional obsolescence,” like design flaws or features that are out of fashion. Finally, consider any “external obsolescence,” or things that negatively affect value that are out of your control, such as changing traffic patterns or roads that affect access or safe ingress/egress, or an oversupply of similar properties in the market (usually resulting in lower rents and value). External obsolescence could also be something like unattractive neighboring properties or neighborhood blight.  

The Protest 

Make all your communications genuine and kind. Being accusatory or brash won’t serve your interests. Assume the best about the intentions of the other party.  

Once you have developed your opinion of value, include in (or update) your protest with your value opinion along with a concise explanation of the facts as you see them. Submit or upload your evidence package (e.g., photos, estimates, receipts). This will provide the assessor’s office with an opportunity to review your case and potentially make a settlement offer before your hearing date.  

There are three potential phases of a protest: informal administrative, formal ARB hearing, and arbitration or lawsuit. Administrative remedies must be exhausted (mainly ARB hearing and Board orders issued) prior to pursuing either of the latter options.  

After your protest application is processed, you should receive a hearing date notice. The period between your protest filing and the hearing date is an opportunity for informal discussions and negotiations, which could lead to a settlement agreement and an end to the protest. Not all central appraisal districts (CADs) offer informal review. If you receive a settlement offer that is acceptable, it is typically best to sign it before the ARB hearing date and forego the formal hearing. In fact, the settlement offer may expire if not agreed to prior to the hearing date, such that it would be “off the table” in the hearing. The ARB is not obligated to approve a settlement offer previously offered.  

If you proceed to the formal ARB hearing, here’s the way it usually goes: opening questions (basis of appeal, market or equity or both), presentation of evidence, appraisal district response, board deliberation, final decision issued by the ARB chair. The entire hearing may be limited to 15 minutes, so it’s important to be concise and focus on your opinion of value and your primary supporting documentation. Your hearing could be in person, over the phone, or by video conference. Prepare accordingly. Even if you submitted evidence beforehand, I recommend bringing four copies of the evidence you plan to present (one for the assessor’s staff and one for each ARB member). 

The binding arbitration and lawsuit options are more expensive but may be necessary. Most cases are settled at the administrative level. However, if you are not satisfied with the Board’s decision and want to continue your appeal, you will need to file your arbitration or lawsuit within 60 days of the Board’s written order. For more information on these options, visit the .  

What Not To Do 

Notice I did not say anything about your tax bill, the tax rates, or your ability to pay. That is because these factors are not relevant to this process. The assessor only sets your value; they have no say in the tax rates (and ultimate tax bill) set by your county, city, and school board. Furthermore, there are statutory rules in place that govern how much the taxing entities can increase revenue on existing properties, thus limiting rate changes.  

Bring your concerns about tax rates and amounts to the rate setting meetings of your local governments. If total assessed values on existing properties increase by more than 2.5 percent (for ISDs) or 3.5 percent (for cities and counties), it is likely that their tax rates will need to be reduced unless local voters approve of the additional increase in revenue.  

Stand Up For Your Rights 

If you are unsure whether you should appeal or not, you most likely should. You cannot get what you don’t ask for and, at the very least, you will learn things through the experience. While it can be intimidating and even frustrating at times, keep your cool and stay focused on the issues that affect value, market value, and taxable value.  

Regarding taxable value, be sure you apply for and receive any exemptions available to you. For example, homeowners are eligible for a homestead exemption on their primary residence, and those over age 65 are eligible for additional exemption and a freeze on their taxes. Applying for exemptions is not part of the value protest process. More information on exemptions is available .  

Do not hesitate to contact your local appraisal district (assessor’s office) with questions about procedures, processes, forms, or value. They are there to help. Additionally, each appraisal district has a  who can be of assistance. To find your assessor’s contact information and website, .  

Views expressed on The 338 are those of the authors and do not imply endorsement by the Texas Real Estate Research Center, Division of Research, or Texas A&M University.