The following questions and answers primarily aim to assist commercial property owners and managers with their commercial property tax protests and appeals activity

What if I miss the protest deadline?

In Texas, the statewide deadline for protesting property tax valuations is May 31, 2016. If you fail to file a protest on time, your options are limited. However, late protests are allowed for certain special circumstances. The ARB decides whether you have good cause warranting a protest extension.

Do I need to hire a tax professional or agent?

There are several resources available to assist you through the protest and appeals process, with tax agents being one. However, with help from the appraisal district’s staff and free online resources, you can get through the protest process on your own.

Tax agents certainly qualify as one of the best resources, as they possess very specific skills and expertise in valuation, knowledge of protest procedure and negotiation skills that aid in informal and formal protest hearings. Plus, they will generally attend informal and formal protest hearings for you.

On what grounds can I protest?

The Texas Tax Code allows each property owner or lessee to protest on the grounds of either an unequal appraisal or an excessive appraisal.

• Unequal Appraisal
If on unequal appraisal grounds, you will have to show that the appraisal district has appraised your property for a higher value than similarly situated and similarly located properties.

• Excessive Appraisal
If on excessive appraisal grounds, you will have to show that the appraisal district has appraised your property for a higher value than its market value.

What documentation will I need to support my claim?

While the first hearing is an informal process, it will be your first opportunity to provide detailed information about your claim, so it is important to be prepared with some or all of the following:

Commercial Owner Occupied:

• Three years’ operating expenses
• Any sales contract or listing brochure
• Evidence of deferred maintenance, plus documented cost to cure
• Appraisals for purchase, financing or other reasons
• Market Analysis or Highest and Best Use Studies
• For new construction: construction costs
• For upgrades: cost of remodeling

Income Producing Properties:

• Detailed rent roll
• Lease abstract for new leases with detail on tenant improvements
• Detailed three years’ income
• Detailed three years’ expenses, itemized as to tenant and landlord obligations
• Any sales contract or listing brochure
• Rent information on any vacant space
• Evidence of any deferred maintenance, plus documented cost to cure
• Appraisals for purchase, financing or other reason
• Market Analysis or Highest and Best Use Studies
• For new construction: construction costs
• For upgrades: cost of remodeling

Can I See the Appraisal District’s Evidence?

Yes. You have the right to inspect the information that the Appraisal District plans to introduce at your hearing. However, once you have protested, you need to actively request it from the appraisal district.

What If I Am Unsuccessful But Still Believe the Appraisal District Is Wrong?

You have a right to appeal the Appraisal Review Board’s value determination order through litigation. The appeal allows you the chance to start afresh–even adding more evidence as ammunition to your value argument, which makes your protest even stronger than presented during the initial protest process.

This is where our law firm can help. For more information about our protest appeals litigation services, click here.