HOUSTON—From El Paso to Texarkana and from Brownsville to Amarillo, Texans are fired up this summer about property tax bills. Property values in numerous counties have increased by double digits this year, resulting in big jumps in the taxes property owners are expected to pay, according to Rahul Patel, attorney and managing partner with Patel | Gaines, a local law firm.

“The appraised value from your local county appraisal district isn't the last word if you don't want it to be,” Patel tells GlobeSt.com. “Property owners across Texas had until May 31 to file an official protest of their property's value. In many cases, such a protest results in a lower valuation and, in turn, a lower tax bill.”

Appraisal review boards will be working all summer to resolve those protests. However, not every protesting property owner will wind up being satisfied with the review board's decision. Which leads to a final option: filing a lawsuit, says Patel.

“No one files a protest secretly hoping they'll end up suing their appraisal district,” Patel continues. “But with more than 1.8 million parcels of property to assess in Harris County alone, it's inevitable that some valuations are still going to end up off target after a protest and a hearing with the appraisal review board. Even the best property tax consulting firms out there don't win every protest.”

Especially in the case of many commercial and industrial properties, taking the appraisal district to court is the last hope of achieving a realistic and fair valuation. For a commercial property valued in the millions of dollars, a significant reduction in the valuation means big cuts in the final tax bill. Thousands of suits are filed against appraisal districts statewide each year and many produce major tax savings as values are reset to be fairer and more equitable.

And filing a lawsuit often is less time consuming and less costly than expected, Patel says.

“Essentially, the property owner argues that their property is simply valued too high for the market, or that comparable properties are valued lower and that this disparity is unfair,” he explains. “It's not unusual for a relatively simple lawsuit to result in a six-figure cut to a commercial property's final tax bill.”

Patel offers a critical point to remember: suits must be filed within 60 days of receiving the appraisal review board's final decision.

“Beyond 60 days, you're stuck with the review board's number,” he cautions. “So, if you filed a protest, do your homework and do the best you can to reduce your valuation to a fair level. But if you don't get the relief you believe you deserve, taking your appraisal district to court can be an effective way to remedy the situation. It's worth at least a discussion with a reputable real estate attorney.”

Patel is also a founder of Citizens for Appraisal Reform, a nonprofit organization devoted to legislative change, correction and improvement of appraisal practices, and an equal and uniform tax system for all property taxpayers–residential, commercial and personal.

Instant Insights /

Appraisals Don't Have to be Final Word

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