Property Tax Binding Arbitration 41A.03

Property Tax Arbitration Application Must be Filed within 60 Days from Receipt of Appraisal Review Board Hearing Result

Section 41A.03 – Request for Binding Arbitration

Property tax appeals are limited by strict rules. If you miss the appeal deadline, you lose your right to appeal. The same applies to filing a request for binding arbitration. You must timely file the application and $500 deposit or forfeit your right to binding arbitration.

The time limit for the application and $500 arbitration deposit is 45 days after the owner/tax consultant receives the appraisal review board (ARB) notice of the result of the property tax protest. The request for binding arbitration must be made on the form developed by the comptroller. Sending a letter or calling the appraisal district to request binding arbitration are not acceptable options. The comptroller’s completed form must be field with the appraisal district within 45 days. A request send by first-class mail, postmarked with the deadline date is considered timely delivery.

In addition to the properly completed form, you must include a $500 deposit, made payable to the Texas Comptroller. Personal and business checks are not acceptable. The deposit should be a money order or cashier check.

The property owner is entitled to binding arbitration if the owner delivers the properly completed form and $500 arbitration deposit within 45 days after the date on the ARB hearing received. At this point, the property owner has timely filled out a property tax protest form, prepared for the property tax hearing, attended the hearing, completed the comptroller’s form and timely delivered it with a certified check for $500. The appraisal district, by comparison, sent a computer-generated notice of assessed value and a computer-generated hearing and hearing results notice.

Binding arbitration for property taxes in Texas is available for market value issues for properties (real estate only) valued at $1 million or less. Property owners with market value disputes after the ARB hearing should seriously consider binding arbitration. The independent appraiser and real estate agents will understand market value arguments and evidence.

Sec. 41A.03. Request for Arbitration.

(a) To appeal an appraisal review board order under this chapter, a property owner must file with the appraisal district not later than the 60th day after the date the property owner receives notice of the order:

(1) a completed request for binding arbitration under this chapter in the form prescribed by Section 41A.04; and

(2) an arbitration deposit made payable to the comptroller in the amount of:

(A) $450, if the property qualifies as the owner’s residence homestead under Section 11.13 and the appraised or market value, as applicable, of the property is $500,000 or less, as determined by the order;

(B) $500, if the property qualifies as the owner’s residence homestead under Section 11.13 and the appraised or market value, as applicable, of the property is more than $500,000, as determined by the order;

(C) $500, if the property does not qualify as the owner’s residence homestead under Section 11.13 and the appraised or market value, as applicable, of the property is $1 million or less, as determined by the order;

(D) $800, if the property does not qualify as the owner’s residence homestead under Section 11.13 and the appraised or market value, as applicable, of the property is more than $1 million but not more than $2 million, as determined by the order;

(E) $1,050, if the property does not qualify as the owner’s residence homestead under Section 11.13 and the appraised or market value, as applicable, of the property is more than $2 million but not more than $3 million, as determined by the order; or

(F) $1,550, if the property does not qualify as the owner’s residence homestead under Section 11.13 and the appraised or market value, as applicable, of the property is more than $3 million but not more than $5 million, as determined by the order.

(a-1) If a property owner requests binding arbitration under this chapter to appeal appraisal review board orders involving two or more contiguous tracts of land that are owned by the property owner, a single arbitration deposit in the amount provided by Subsection (a)(2) is sufficient to satisfy the requirement of Subsection (a)(2). For purposes of this subsection, “contiguous tracts of land” means improved or unimproved tracts of land that are touching or that share a common boundary, as determined using appraisal district records or legal descriptions of the tracts.

(b) A property owner who fails to strictly comply with this section waives the property owner’s right to request arbitration under this chapter. A property owner who appeals an appraisal review board order determining a protest concerning the appraised or market value, as applicable, of the owner’s property under Chapter 42 waives the owner’s right to request binding arbitration under this chapter regarding the value of that property. An arbitrator shall dismiss any pending arbitration proceeding if the property owner’s rights are waived under this subsection.

Added by Acts 2005, 79th Leg., Ch. 372 (S.B. 1351), Sec. 1, eff. September 1, 2005.

Added by Acts 2005, 79th Leg., Ch. 912 (H.B. 182), Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 1034 (H.B. 4412), Sec. 1, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch. 1211 (S.B. 771), Sec. 5, eff. January 1, 2010.

Acts 2013, 83rd Leg., R.S., Ch. 488 (S.B. 1662), Sec. 1, eff. January 1, 2014.

Acts 2013, 83rd Leg., R.S., Ch. 1259 (H.B. 585), Sec. 23, eff. June 14, 2013.

Acts 2015, 84th Leg., R.S., Ch. 474 (S.B. 849), Sec. 2, eff. September 1, 2015.

Acts 2017, 85th Leg., R.S., Ch. 570 (S.B. 731), Sec. 2, eff. September 1, 2017.

Acts 2019, 86th Leg., R.S., Ch. 47 (H.B. 1802), Sec. 1, eff. May 17, 2019.

Acts 2019, 86th Leg., R.S., Ch. 659 (S.B. 1876), Sec. 1, eff. June 10, 2019.

Acts 2019, 86th Leg., R.S., Ch. 944 (S.B. 2), Sec. 69, eff. January 1, 2020.

These codes affect property owners across the state, in both larger and smaller cities including:

• Little Elm
• Ovilla
• Scenic Oaks
• Sanger
• Montgomery
• Manor
• Cockrell Hill
• Sugar Valley
• Windemere
• Converse
• Bacliff
• Olmos Park
• White Settlement
• Roanoke
• Granger
• Thrall
• Richmond
• Hollywood Park
• Highland Park
• League City

The Texas Property Tax Code applies to all property types in Texas including:

• Bar
• Fast food restaurant
• Truck terminal
• Department store
• Restaurant
• Warehouse
• Veterinary clinic
• Subsidized housing
• Medical office
• Community shopping center

O’Connor & Associates offers property tax services to all property owners of all land uses across Texas.

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