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| Preparing for Binding Arbitration
This year, property owners have a new option to appeal their property taxes called binding arbitration. The 2005 Texas Legislature amended this law into 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 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 to err on a value on the high end of the range. Once the opinion is refined, the owner can reduce the value requested at the arbitration. In the Next Issue: Attending a binding arbitration meeting Click here for FREE tips & tricks to reduce your property taxes Questions? E-mail O'Connor & Associates, or call 1-877-4-TAXCUT. Please help us! We are conducting a survey to educate legislators regarding problems with the property tax appeal process. You can help by taking 2 minutes to complete this survey. You will receive a copy of the survey and FREE tips on how to appeal your property taxes. Click here to take our survey. O'Connor handles administrative and judicial property tax appeals. You pay NOTHING unless we save you money!  Please send me periodic tips on reducing my taxes. O'Connor & Associates -- Your Key to Real Estate Value Corporate Office: 2200 North Loop W., Suite 200 Houston, TX 77018 1-800-856-7325 Dallas * Houston * Los Angeles * Newport Beach If you would like to be removed from this list and receive no future real estate information, click here to unsubscribe. |
Property Tax Tips
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