Harris County Appraisal District assessed values can be appealed after the ARB hearing. For properties with an assessed value of $1,000,000 or less after the ARB hearing, you can choose binding arbitration to appeal market value or a judicial appeal (lawsuit in district court). For properties with a Harris County Appraisal District value in excess of $1,000,000, you can file a judicial appeal. Binding arbitration and judicial appeals share several characteristics:
- You must timely file a property tax protest regarding the Harris County Appraisal District value
- You cannot agree to a value at the informal hearing
- You must attend the appraisal review board hearing in person or by affidavit
- You must act by requesting binding arbitration or filing a lawsuit within 45 days of the date of you receive the formal notice of the ARB hearing results.
Steps 1 through 3 are often referred to as "exhausting your administrative remedies." Multiple court decisions affirm you must file a property tax protest and attend the ARB hearing to be entitled to file a judicial appeal. Advantages of using binding arbitration to appeal your Harris County Appraisal District value after the ARB hearing include lower cost, speedier decisions, an independent arbitrator who understands valuation and the opportunity to directly address the valuation problem outside of Harris County Appraisal District offices. Costs are lower because you do not need an attorney or an expert witness (likely to be necessary to seriously pursue a judicial appeal against Harris County Appraisal District). Costs of engaging an attorney and expert witness can be substantial, perhaps $3,500 to $20,000 for many real estate cases. For cases involving smaller properties, consider engaging a firm on a contingency fee basis. The Texas Comptroller expects binding arbitration cases to be resolved in 6 months while judicial appeals usually take 8 to 18 months. The arbitrator will be licensed appraisers or real estate agents/brokers and should understand real estate valuation. Even though the arbitrator is a real estate agent or appraiser, they may not be familiar with some types of commercial properties. Attempt to confirm your arbitrator is competent for the subject property. Disadvantages of binding arbitration include
- It currently (September 2006) only applies to market value for real estate. (i.e. you can't appeal for unequal appraisal for real estate).
- There is a $500 deposit required when you request binding arbitration, although $450 is returned if the property owner prevails. In this case, Harris County Appraisal District would pay the $450 arbitration fee. When setting the requested value on the arbitration form, consider not putting the lowest possible value you can request. Include a value for which you can provide impressive documentation.
- Binding arbitration can't be used for real estate with a Harris County Appraisal District value over $1,000,000 for unequal appraisal, business personal property and mineral interests.
Judicial appeals against Harris County Appraisal District are more expensive but offer more options. You can appeal market value and unequal appraisal for property with any value. Judicial appeals can be used for real estate, mineral interests and business personal property. They can also be used to appeal Harris County Appraisal District when "a property owner has been denied a hearing to which the property owner is entitled." While judicial appeals are more expensive, they offer more options and flexibility. Property owners should seriously consider appealing the Harris County Appraisal District assessed value after the ARB hearing. Most judicial appeals are successful.
Related Articles
Dallas Fort Worth Apartment Search Tips -- Getting the Best Deal
By: Patrick O'Connor | 13/05/2008 | Real Estate
Dallas Fort Worth apartments are expensive. But getting a great deal can make your Dallas Fort Worth apartment less expensive. This article provides tips on getting the best deal possible when leasing a Dallas Fort Worth apartment.
Business Tax Deduction Tips
By: Patrick O'Connor | 21/01/2008 | Taxes
Tax tips and tax help to assist taxpayers by describing options for tax reduction and tax cuts through lawful tax deductions.
Tax deductions contribute to national prosperity by providing capital to business. Tax deductions reduce taxable income.
Tax Deductions Tips for Individual Real Estate Investors
By: Patrick O'Connor | 31/01/2008 | Management
Tax deductions are not the top priority for most individual real estate investors. They often work out of their home with no employees, other than those on-site at the property. Challenges (aside from tax deductions) include selecting what property to purchase, screening tenants, repairs, managing expenses, obtaining financing, and deciding when to sell. This articles addresses tax deductions sometimes over-looked by real estate owners.
How to Minimize the Property Tax Assessments Set by the Harris County Appraisal District
By: Patrick O'Connor | 04/02/2008 | Taxes
Harris County Appraisal District estimates the market value for 1.6 million parcels of real estate with a staff of about 150 appraisers. That's an average of over 10,000 parcels per appraiser per year! While they value a large number of properties annually, you can focus intense attention on reducing the value of your property.
More Tax Deduction Means Tax Reduction
By: Patrick O'Connor | 20/02/2008 | Taxes
Most commercial real estate owners are paying excess federal income taxes because they are not depreciating their property as quickly as they should. A cost segregation study allows property owners to both defer and reduce federal income taxes. Cost segregation increases depreciation (a non-cash deduction) for commercial real estate owners.
Insurance Valuation
By: Patrick O'Connor | 27/02/2008 | Insurance
Insurance Valuation can guarantee the property owner has adequate insurance and is not paying for excessive coverage.
Single Family Litigation Support
By: Patrick O'Connor | 04/03/2008 | Management
Single-family litigation support and expert witness testimony assists legal counsel and the property owner in obtaining a reasonable and just settlement. Providing an initial assessment of the strengths and weaknesses of a case provides insights into the strategy that is appropriate for the fact situation.
1031 Exchange - How You Can Indefinitely Defer Income Taxes
By: Patrick O'Connor | 12/03/2008 | Real Estate
1031 Exchanges are excellent tools to reduce income taxes. Known both as "tax free exchanges" and "1031 exchanges" (based upon the enabling section of the federal income tax code) this tool allows investors to sell real estate without paying income taxes (at the time of sale).
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Deducting job search related items
By: uma | 30-06-2008
Are job search related items deductible?
Controversial JCPenny Commercial
By: Oshi | 30-06-2008
Why has this commercial caused so much controversy?It's not as if anyone's really surprised young people are "doing it", right?
Can anybody recommend a tax return software?
By: cleverclogs | 13-06-2008
I am a self employed hairdresser and need to find a software which will help me track my income and expenditure through the year. Can anyone recommend one?
Cost Segregation, what is it and can I save tax dollars?
By: Mike | 08-06-2008
What are the benefits of doing a cost segregation study on my commercial property?
If I open a graph in Powerpoint, the axis font ...
By: Lindah | 22-04-2008
If I open a graph in Powerpoint, the axis font changes to bold and a bit "thicker". Have checked all "auto" settings, defaults, font types, s/w versions, etc. When the same presentation if opened on another computer, it returns to its previous state.
I am a F2 visa, can I chenge my status?
By: rmmp | 20-04-2008
I am a F2 visa; after 3 years living here I want to appy for a EAD or H2, can I do that, and keep my F2 visa?
Q&A Powered by:
Latest Taxes Articles
How to Stop IRS Levies
By: Neil Lemons | 17/07/2008
The IRS can get very aggressive with tax defaulters. They also have very wide powers of recovery and will not hesitate to use it particularly when tax dues are large. However, many tax payers are caught unawares by the levy action. Learn How to Stop IRS Levies.
What to do in an IRS Audit
By: Neil Lemons | 16/07/2008
For most taxpayers, filing of return is the end of their engagement with the IRS for the year. In most cases, if the return is correctly filled up. What do you do in an IRS audit? Find out.
How To Remove Federal IRS Tax Liens
By: Neil Lemons | 16/07/2008
IRS liens are hard on a family's life, health, as well as financially; they can cause a financial loop that's very difficult to get out. Read more information on how to remove federal IRS tax liens written by one expert.
How to Survive an Irs Audit and the Irs Recordkeeping Requirements
By: Christy Pinheiro, EA | 15/07/2008
Every day, clients complain that the IRS’ recordkeeping requirements are cumbersome, outdated, and difficult to understand. On one hand, the IRS requires taxpayers to substantiate their expenses, but makes it difficult for taxpayers to comply. This requirement is especially tricky for business taxpayers, who must devote precious time, energy, and money to retain and log even the smallest business expenses for fear of an IRS audit.
9 Summertime Tax Tips From the Roni Deutch Tax Center®
By: Roni Deutch | 15/07/2008
Summer months land right in the middle of the tax year, therefore it is a great time to review your finances and prepare a tax strategy for the rest of the year. Follow these 9 helpful summertime tax tips from the Roni Deutch Tax Center® tax professionals, and you will be extra prepared for tax season come this January.
The Tax Lady Roni Deutch Compares the Tax Views of Presidential Hopefuls Obama and Mccain
By: Roni Deutch | 15/07/2008
In November, either Sen. John McCain or Sen. Barack Obama will likely be elected as the next Commander-in-Chief of our Nation. The economy is changing and in the next five months, the economic conditions are likely to get even worse. Therefore, it is crucial to understand their tax views now so that we can begin to plan for the future of our country’s economy. In the article below The Tax Lady Roni Deutch compares and contrasts the views of each candidate to help taxpayers determine whom their t
Starting a Llc
By: Nick Braun EA PhD | 15/07/2008
LLC stands for Limited Liability Company and the owners are called members. The LLC is a relatively new type of business structure. It was only in 1996 that most states had recognized them.
Setting Up an S Corporation
By: Nick Braun EA PhD | 15/07/2008
We will take a close look at the drawbacks and S corporation advantages, also known as S corps. S corps offer limited liability and simple tax treatment. They’re pass-through entities which means the profits of the business pass through to the owners personal tax returns.
More from Patrick O'Connor
Real Estate Valuation
By: Patrick O'Connor | 30/05/2008 | Real Estate
The Approaches to Establishing Property Value
Dallas Fort Worth Apartment Search Tips -- Getting the Best Deal
By: Patrick O'Connor | 13/05/2008 | Real Estate
Dallas Fort Worth apartments are expensive. But getting a great deal can make your Dallas Fort Worth apartment less expensive. This article provides tips on getting the best deal possible when leasing a Dallas Fort Worth apartment.
Houston Apartment Search Tips - Finding a Low Total-move-in-cost Houston Apartment
By: Patrick O'Connor | 09/05/2008 | Management
Austin apartments come in many shapes and sizes. You can usually find a Austin apartment with a very low total move-in cost. Total move-in cost includes the application fee, deposit, and first months rent. Before focusing on the move-in costs, review whether the total move-in-cost is the most important issue in selecting a Austin apartment.
Finding a Quiet Houston Apartment
By: Patrick O'Connor | 15/04/2008 | Real Estate
Houston apartments can offer quiet idyllic conditions. However, many Houston apartments are not quiet. This article provides insights into finding a quiet Houston apartment at an affordable price.
Hud Rent Comparability Studies
By: Patrick O'Connor | 09/04/2008 | Business
Requirements for preparing HUD Rent Comparability studies are voluminous and strict. HUD Rent Comparability Studies require adjustments for a large number of factors including:
Apartment Tips -- Find a Great Apartment in Austin in One Week
By: Patrick O'Connor | 01/04/2008 | Real Estate
Apartment shopping in Houston is easy when you organize the process. This article will help you find a great Austin apartment at a great price. It will also make the Houston apartment shopping experience less stressful.
Harris County Appraisal District - Tips for a Successful Property Tax Protest
By: Patrick O'Connor | 25/03/2008 | Real Estate
Harris County Appraisal District assesses property and that value sets your property tax amount. Reducing your property taxes is relatively simple but requires a modest commitment of time. Your other option is to hire a property tax consultant.
Expert Witness Testimony for Real Estate
By: Patrick O'Connor | 18/03/2008 | Real Estate
Expert witness analysis and testimony provides both the parties information to settle prior to the actual judicial proceeding. When settlement negotiations are not successful, expert witness testimony provides the trier of fact (judge or jury) information to consider in making their decision.
Finance 
