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KEEP ME INFORMED |
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O'CONNOR REAL ESTATE EVENTS |
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- Office Forecast Luncheon
November 18th, 11:30 a.m. - 1:00 p.m.
Location:
Courtyard on St. James, 1885 St. James Place, Houston
Speakers:
Scott Ison, Axis Tenant Advisors
Jon Silberman, NAI Houston
Register Now!
- Apartment Forecast Luncheon
December 9th, 11:30 a.m. - 1:00 p.m.
Location:
Courtyard on St. James, 1885 St. James Place, Houston
Speakers:
Ed Nwokedi, Cushman & Wakefield of Texas, Inc.
Craig LaFollette, Holliday Fenoglio Fowler, L.P.
Register Now!
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Preparing for Binding ArbitrationAugust 1, 2006
Preparing for Binding Arbitration
This year, property owners have a new option to appeal their property taxes called binding arbitration. The 2005 Texas Legislature added this option to the Texas Property Tax Code (TPTC) for property owners who appeal at an appraisal review board (ARB) hearing and have property with a value of $1 million or less. The arbitrator can consider market value at a binding arbitration hearing, but not unequal appraisal.
Who qualifies for binding arbitration?
- The property in dispute is real property (not personal property or mineral interests)
- The property owner has received the ARB written determination on the appraised or market value of the property
- The property owner's value set by the ARB is $1 million or less
- The property owner has paid taxes timely
- The property owner has not filed a lawsuit in district court
How to request binding arbitration
The appeal for binding arbitration may only address market value for real estate. Click here to access Form AP-219, Request for Binding Arbitration. The form and a money order or a check issued and guaranteed by a banking institution in the amount of $500 made payable to the Comptroller of Public Accounts, must be delivered to the county appraisal district within 45 days of the receipt of the ARB order. Regardless of the outcome, $50 is retained by the Comptroller's office for administrative costs. If the property owner wins the dispute, the owner is refunded $450. If the arbitrator's assigned value is not nearer to the owner's opinion of value than the appraisal district's value, the arbitrator is paid from the property owner's $450 deposit.
Developing an Opinion of Value
One key element of the Comptroller's request for binding arbitration is the owner's opinion of value. This is the trigger mechanism that determines whether the property owner or the appraisal district pays for the cost of the arbitrator.
The property owner can include one opinion of value in the request for binding arbitration form and a lower opinion of value at the hearing. The lower opinion can be determined after the binding arbitration form is completed, when the owner can further research the analysis. For example, the owner may have time to obtain bids for items such as exterior painting, interior painting, roof replacement, landscaping, clients replacement, flooring replacement, wallpaper replacement, repairing tile, repairing painted stuck windows, pet odor, smoke odor, replacing fixtures, replacing doors and replacing the HVAC. If the property owner is not sure what value to request, it is suggested you err on a value in the high end of the range. Once the opinion is refined, the owner can reduce the value requested at the arbitration.
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