There are seven States with no income tax. (1) Of course, Texas is one of them and this is one of the reasons why many people want to move to Texas. However, this doesn’t mean that there are no other taxes involved. Unfortunately, Texas has one of the highest property taxes in the United States. The tax rate for this tax is 1.94% on average. (2) However, it turns out that many of these property tax bills are not accurate and individuals have the right to appeal their property taxes.
Why appeal?
Let’s take an example. If your property is assessed at $200.000 and your property tax is cut by 5% this means that your assessed value is reduced by $10.000 which can save you around $200. Of course, it all depends on the property tax rate and the value of your property. So, in case you believe that your property has been valued higher than it is, there is a chance to appeal to the tax authority. People can file a property 30 days after they have received the appraisal district notice or until May 31st.
Property Tax Appeal in Texas – How to File One?
Just to be clear – you have to disagree with the appraisal deliver by the authorities in order to file an appeal. This protest must be delivered to the appraisal review board. In most cases, you will be called to a meeting and in the majority of cases, the issue will be resolved during this informal session. Every meeting ends with a written notice that you can use later in the process. If you are unable to resolve this issue during this meeting there is a complex legal procedure.
How to get the most from appealing your personal property taxes?
There a few things that every taxpayer can do to get prepared for their appeal. For instance, it’s a smart move to talk to a district appraiser in your area and get information about the appraisal process. It’s also wise to analyze the appraisal. Every measurement and the description, in general, should be correct. Sometimes, a small technical error can lead to huge problems and an unrealistic appraisal.
The appraisal should include the defects that are not clearly visible as outdated and improper plumbing or damages to the foundation or under the roof. Use an independent appraiser or a simple photograph to provide evidence for these defects.
Experienced tax experts like TaxPM will advise you to check the appraisal information about similar real estates in your area. Of course, your property must be treated in the same way as these properties. Using an independent appraisal provided by a real estate expert in this field can also be very useful. Finally, analyze the expenses that you can expect for appealing this decision and compare them to the potential savings.
Hopefully, this blog post will help you understand when and how to appeal personal property taxes in Texas.
(1) https://www.usatoday.com/story/money/personalfinance/2014/04/26/these-states-have-no-income-tax/8116161/
(2) https://smartasset.com/taxes/texas-property-tax-calculator