As the weather turns cold, Texans are not only prepping for the winter but are also preparing their finances. While the Holidays are always a huge drain on the pocketbook, all property owners know that January 31 is the last day to pay property taxes in Texas before penalties and interest begin piling up. For the most egregious of errors, you have a chance to use a correction of the appraisal roll. This method of lowering property taxes is somewhat obscure, even in the already esoteric world of tax appeals. Though it is not well known, it can produce substantial savings in the right conditions. It can also be used retroactively, for up to five years, allowing flexibility not seen with other methods. O’Connor will discuss a brief overview of corrections and how they can be used to decrease your tax burden.
What is a Correction of the Appraisal Roll?
Also known as a section 25.25 correction, these motions are a tool you can use to fix blatant errors in your appraisal. These cannot be used to lower the taxable value on a property like standard appeals or lawsuits. Instead, corrections target basic details about your property that may have been incorrectly recorded. Such issues include clerical errors, nonexistent property, multiple appraisals, ownership issues, or assessments that are inflated by over a quarter of the true value of a property.
If one of these issues is noticed, you must file a 50-771 form with your appraisal district. Once received, the correction is then sent to the ARB, which will review the motion and hold a hearing to decide its validity. These hearings are relatively rare, only happening once a month. This means that there can be a backlog and a lengthy wait time, though this varies between counties. If the ARB sides with you, the rolls will be corrected. This is not a typical ARB hearing, however, and the only metric being contested is a singular error that was discovered. Anything outside of that scope will be ignored.
The tax year being corrected cannot be delinquent, meaning the motion must be for taxes that have yet to come due or those that have already been paid. This means that if you are looking to correct their current taxes, you must do so before January 31. Otherwise, they will have to pay the full amount and wait for the ARB to determine the actual amount due at a later date. You should be vigilant when looking over their assessments and taxes. Thanks to the potential wait time and the hard cut-off date in January, the holiday season is actually the perfect time for you to strike.
Clerical Errors
Clerical errors are the most common reason for a correction and are usually easily resolved. Clerical errors can be basic issues, such as the wrong measurements for a property, an incorrect classification, or other blatant mistakes. This can also include errors in transcription, calculations, writing, or other similar issues. Since these are all easy to rebut, the only real obstacle impeding you is waiting for the ARB. It always helps to have evidence and bringing pedigree documents will go a long way. For errors of measurement, an independent appraisal or survey could help as well, though it might be a bit overkill. While a simple fix, addressing clerical errors can bring in some outsized savings and can be a true boon to your bottom line.
Multiple Appraisals
This is an incredibly easy problem to correct, but one that could prove disastrous if not caught. Essentially, the home or business appears twice on the tax rolls. This means double the taxes owed. As only one property at a singular address can exist, this is quite easy to prove to the ARB and the district. Again, it is just a matter of filing the paperwork and making the hearing that is the impediment, as there should be no other issue in proving your case.
Nonexistent Property
This is where you are appraised and taxed for something that does not exist. While this could be the result of a truly grievous error by the appraisal district, this is usually for a property that was destroyed in a fire, flood, or other disaster. These can sometimes cling on as functioning properties, acting as a major drain on your finances if not corrected. Again, this is relatively easy to prove, once it has been brought to the attention of the ARB. Despite how simple it may seem, this error can easily occur in places with massive disasters, such as hurricanes or wildfires. This can also apply to improvements that do not exist, such as swimming pools, additions, or garages. This tends to be one of the more insidious reasons for a correction, as those coming from false improvements can sneak onto a tax bill, possibly costing you thousands of dollars.
Ownership Errors
Through sales, transactions, transfers, estate cases, or just good old-fashioned paperwork errors, you may be left holding the bag for properties you do not even own. Being told that you are on the hook for a large factory or home that you have never seen is quite the unpleasant surprise. In the event of transactional errors, corrections can help correct open issues that might have otherwise gone unnoticed. This can also complicate things like Homestead exemptions, making getting a fix a high priority. Exemptions are one of the primary reasons for a correction on ownership grounds. You can benefit strongly by using corrections to retroactively fix exemption issues, as several years of homestead or over 65 exemptions can potentially bring in thousands of extra dollars. Sales records, deeds, and other such documents are key to proving your case.
Substantial Valuation Error
Often linked to nonexistent property or ownership issues, there is limited room to contest value. However, this must be in the extreme, not the typical property tax appeal. If the property is a homestead, the value must exceed the true worth of a property by one fourth. If the property is not a homestead, then the value must exceed the actual number by one third. These corrections require the most evidence to prove, especially those going back a few years. Despite the effort involved, proving such a case would be a major windfall for you. This is the only scenario where your taxable value can be directly challenged, giving you one final chance at a property tax appeal.
Retroactivity and Flexibility
It should be apparent that most corrections cases are quite obvious. Anything requiring more finesse would instead be relegated to administrative appeals or lawsuits. One of the biggest pluses for corrections is that they can be retroactively used, up to five years in the past. This cannot be done with standard appeals, making them a vital tool in your toolbox if you are serious about lowering your taxes. Getting a homestead exemption applied to a previous year alone could bring in a bonanza of savings. These cases can help claw back taxes that you erroneously paid in the past, something no other technique can achieve.
December is Vital for Corrections
December is a key time for corrections for a few reasons. Firstly, a well-timed correction filing can head off a high tax bill in 2026. The correction must be filed before the taxes become delinquent on January 31, so getting the correction done in a timely fashion is a must. Second, if you are attempting to correct a past error, you have five years to do so. As January 1 marks a new tax year, any errors from 2020 must be addressed before the new year. While corrections can be filed any time after July, December is usually the final chance that you have for the year. Due to the relative obscurity of corrections, very few taxpayers or even tax professionals explore their use. Knowing about this semi-hidden technique gives you an edge, especially in the waning months of the year.
O’Connor Can Help You Save
We at O’Connor have been helping Texans lower their taxes for over 50 years. Based in Houston, we know the ins-and-outs of how to deal with appraisal districts and the ARB. We have connections with boards across the state and are familiar with the evidence they require. We are also one of the largest property tax consulting firms in the nation, giving us national resources and local expertise. While we tend to pursue administrative appeals and lawsuits, we also have a focus on cost segregation and corrections of the appraisal roll.
When you enroll with O’Connor, we will bring our full might to your case. We will review your assessment, run analytics on your values, compare your property to the sales of others using our proprietary database, and represent you with appraisers, the ARB, and even in court for lawsuits. We also review your taxes annually and can often catch the errors that need to be taken to corrections early, saving you time and hassle. If you do need a correction, we will file the paperwork for you, gather evidence, and represent you at the ARB. Best of all, you will not be charged a dime unless your taxes are lowered. Start 2026 off right by landing the perfect corrections campaign with O’Connor.
