Texas Property Tax Tips
    Advice and suggestions to help property owners achieve fair & equal assessments and reduce property taxes.
New Avenue to Appeal Your
Property Taxes: Binding Arbitration

Homeowners have several avenues to appeal property taxes. If the homeowner declines the appraiser's offer at the informal hearing, the next step is an Appraisal Review Board (ARB) hearing. If the ARB hearing does not generate an acceptable value, the property owner has the option to request binding arbitration within 45 days of receiving the ARB order determining the protest.

Effective September 1, 2005, the Texas Legislature amended the Texas Property Tax Code to allow property owners the option of appealing an ARB decision for a property with a value of $1 million or less using binding arbitration. The arbitrator can only consider market value at a binding arbitration hearing, but not unequal appraisal.

According to Texas Comptroller Carole Keeton Strayhorn, "By Comptroller Rule 9.804, "binding arbitration" in the context of property value disputes means a forum in which each party to a dispute presents the position of the party before an impartial third party who is appointed by the Comptroller as provided by Tax Code, Chapter 41a, and who renders a specific award that is enforceable in law and may only be appealed as provided by Civil Practices and Remedies Code, 171.088, for purposes of vacationing an award."

The following appraisal disputes qualify for arbitration:
  • The property in dispute is real property;
  • The county ARB has issued a written determination on the appraised or market value of the property;
  • The disputed property's value as determined by the ARB does not exceed $1 million;
  • Taxes have been timely paid; and
  • A lawsuit, under Chapter 42, has not been filed in district court
When compared to a judicial appeal, advantages of binding arbitration include a lower cost, informal process, speedier resolution and the loser pays provision. Also, the property owner does not have the burden of proof at a binding arbitration hearing. And, the arbitrators will be independent, while the appraisal district hires and pays the ARB members.

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Property Tax Tips

  • Protest every year, and use all steps in appeal process when necessary


  • Protest both market value and unequal appraisal


  • Obtain data to prepare for hearing


  • Be aggressive; demand results

About O'Connor & Associates

As Texas' largest property tax consulting firm, O'Connor & Associates has the expertise and the manpower to help you lower your property taxes. Last year O'Connor reduced our clients' assessed values by $1.1 billion, cutting their taxes by more than $33 million. This year our firm's appeals against properties in more than 100 counties increased by 66% to 70,000 protests. O'Connor charges no flat fee and no cost to the client unless property taxes are reduced. To hire O'Connor & Associates to reduce your property taxes, please visit www.cutmytaxes.com.