Property Tax Determination Protest 41.47

Property Tax Protest – Appraisal Review Board Shall Issue a Written Decision

Section 41.47 – Determination of Property Tax Protest

The appraisal review board (ARB) panel typically makes its decision and verbally announces it at the end of the property tax appeal hearing. After the complete ARB meets to affirm the decision, the ARB send, by certified mail, written notice of its decision. Receipt of the written notice of the results of the property tax protest triggers a 45-day period during which the property owner can further appeal the results with a judicial appeal or binding arbitration (for market value for properties with a value of $1 million or less after the ARB hearing).

One disputed issue is whether the ARB must provide multiple decisions if there are multiple bases of property tax protests. While it is clear several decisions are necessary if the owner appeals market value and a homestead exemption, most appraisal districts claim only one appeal is necessary when both market value and unequal appraisal are appealed.

Sec. 41.47. Determination of Protest.

(a) The appraisal review board hearing a protest shall determine the protest and make its decision by written order.

(b) If on determining a protest the board finds that the appraisal records are incorrect in some respect raised by the protest, the board by its order shall correct the appraisal records by changing the appraised value placed on the protesting property owner’s property or by making the other changes in the appraisal records that are necessary to conform the records to the requirements of law. If the appraised value of a taxable property interest, other than an interest owned by a public utility or by a cooperative corporation organized to provide utility service, is changed as the result of a protest or challenge, the board shall change the appraised value of all other interests, other than an interest owned by a public utility or by a cooperative corporation organized to provide utility service, in the same property, including a mineral in place, in proportion to the ownership interests.

Text of subsection effective until January 01, 2022

(c) If the protest is of the determination of the appraised value of the owner’s property, the appraisal review board must state in the order the appraised value of the property:

(1) as shown in the appraisal records submitted to the board by the chief appraiser under Section 25.22 or 25.23; and

(2) as finally determined by the board.

Text of subsection effective on January 01, 2022

(c) If the protest is of the determination of the appraised value of the owner’s property, the appraisal review board must state in the order the appraised value of the property, listed separately in the case of real property as the appraised value of the land and the appraised value of any improvement to the land as allocated by the chief appraiser:

(1) as shown in the appraisal records submitted to the board by the chief appraiser under Section 25.22 or 25.23; and

(2) as finally determined by the board.

(c-1) If, in the case of a determination of eligibility for a refund requested under Section 23.1243, the appraisal review board determines that the dealer is entitled to a refund in excess of the amount, if any, to which the chief appraiser determined the dealer to be entitled, the board shall order the chief appraiser to deliver written notice of the board’s determination to the collector and the dealer in the manner provided by Section 23.1243(c).

(c-2) The board may not determine the appraised value of the property that is the subject of a protest to be an amount greater than the appraised value of the property as shown in the appraisal records submitted to the board by the chief appraiser under Section 25.22 or 25.23, except as requested and agreed to by the property owner. This subsection does not apply if the action being protested is the cancellation, modification, or denial of an exemption or the determination that the property does not qualify for appraisal as provided by Subchapter C, D, E, or H, Chapter 23.

(d) The board shall deliver by certified mail:

(1) a notice of issuance of the order and a copy of the order to the property owner and the chief appraiser; and

(2) a copy of the appraisal review board survey prepared under Section 5.104 and instructions for completing and submitting the survey to the property owner.

Text of subsection effective on January 01, 2022

(d-1) This subsection applies only to an appraisal district established in a county with a population of 120,000 or more. The requirements of this subsection are in addition to the requirements of Subsection (d). On written request submitted to the chief appraiser, the chief appraiser shall deliver by e-mail, in the manner provided by this subsection, a copy of the notice of issuance of the order and a copy of the order required by Subsection (d) if the property subject to the order is not the subject of an agreement under Section 1.085. A request under this subsection may be submitted only by the property owner whose property is subject to the protest for which the order is issued, an attorney representing the property owner, or an individual designated by the property owner under Section 1.111. A person may include in a single request more than one property owned by the same property owner or multiple properties owned by multiple property owners. A person may submit more than one request. A person submitting a request must indicate in the request that the chief appraiser must make the delivery to the property owner, an attorney representing the property owner, an individual designated by the property owner under Section 1.111, or a combination of those persons. A person must submit a request before the protest hearing relating to each property included in the request. The chief appraiser shall deliver, as provided by this subsection, a copy of the notice of issuance of the order and a copy of the order required by Subsection (d) not later than the 21st day after the date the appraisal review board issues the order.

(e) The notice of the issuance of the order must contain a prominently printed statement in upper-case bold lettering informing the property owner in clear and concise language of the property owner’s right to appeal the order of the board to district court. The statement must describe the deadline prescribed by Section 42.06(a) for filing a written notice of appeal and the deadline prescribed by Section 42.21(a) for filing the petition for review with the district court.

(f) The appraisal review board shall take the actions required by Subsections (a) and (d) not later than:

(1) the 30th day after the date the hearing on the protest is concluded, if the board is established for an appraisal district located in a county with a population of less than four million; or

(2) the 45th day after the date the hearing on the protest is concluded, if the board is established for an appraisal district located in a county with a population of four million or more.

(g) The chief appraiser and the property owner or the designated agent of the owner may file a joint motion with the appraisal review board notifying the board that the chief appraiser and the property owner or the designated agent of the owner have agreed to a disposition of the protest and requesting the board to issue an agreed order. The joint motion must contain the terms of the disposition of the protest. The board shall issue the agreed order not later than the fifth day after the date on which the joint motion is filed with the board. The chief appraiser and the property owner or the designated agent of the owner may provide in the joint motion that the agreed order is appealable in the same manner as any other order issued by the board under this section.

(g-1) The chief appraiser and the property owner or the designated agent of the owner may file a joint motion with the appraisal review board notifying the board that the chief appraiser and the property owner or the designated agent of the owner have agreed to a disposition of the protest and requesting the board to issue an agreed order. The joint motion must contain the terms of the disposition of the protest. The chairman of the board shall issue the agreed order not later than the fifth day after the date on which the joint motion is filed with the board. If the chairman is unable to issue the agreed order within the five-day period, the board shall issue the agreed order not later than the 30th day after the date on which the joint motion is filed with the board. The chief appraiser and the property owner or the designated agent of the owner may provide in the joint motion that the agreed order is appealable in the same manner as any other order issued by the board under this section.

Acts 1979, 66th Leg., p. 2307, ch. 841, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 172, ch. 13, Sec. 140, eff. Jan. 1, 1982; Acts 1985, 69th Leg., ch. 504, Sec. 3, eff. June 12, 1985; Acts 1987, 70th Leg., ch. 145, Sec. 1, eff. Jan. 1, 1988; Acts 1987, 70th Leg., ch. 773, Sec. 2, eff. Jan. 1, 1988; Acts 1987, 70th Leg., ch. 794, Sec. 2, eff. June 18, 1987; Acts 1989, 71st Leg., ch. 2, Sec. 14.03, eff. Aug. 28, 1989.

Amended by:

Acts 2011, 82nd Leg., R.S., Ch. 322 (H.B. 2476), Sec. 6, eff. January 1, 2012.

Acts 2011, 82nd Leg., R.S., Ch. 771 (H.B. 1887), Sec. 12, eff. September 1, 2011.

Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.001(42), eff. September 1, 2013.

Acts 2019, 86th Leg., R.S., Ch. 699 (S.B. 2531), Sec. 1, eff. January 1, 2020.

Acts 2019, 86th Leg., R.S., Ch. 944 (S.B. 2), Sec. 65, eff. January 1, 2020.

Acts 2021, 87th Leg., R.S., Ch. 644 (H.B. 988), Sec. 19, eff. January 1, 2022.

Acts 2021, 87th Leg., R.S., Ch. 915 (H.B. 3607), Sec. 21.001(66), eff. September 1, 2021.

Cross References:
Delivery of notice, see Sec. 1.07.
Filing a notice of appeal, see Sec. 42.06.
Filing a petition for judicial review within 45 days, see Sec. 42.21.
Appraisal review board record requirement, see Rule Sec. 9.803.

Notes:
The notice of the appraisal review board determination was insufficient to comply with statutory requirements of delivery of notice because the notice (1) identified the property only by docket number, not by legal description or a taxpayer account number, and (2) the parent corporation and not the property subsidiary corporate owner was listed. State law treats subsidiary corporations and parent corporations as separate entities and entitles each to notice sufficient to meet the minimum requirements of the Tax Code and due process. It did not matter that the taxpayer’s agent was present at the hearing when the review board made its decision. Receiving the notice, not attending the hearing, triggers the 45-day period for the taxpayer to file in district court. Valero South Texas Processing Co. v. Starr County Appraisal District, 954 S.W.2d 863 (Tex. App. — San Antonio 1997).

The 45-day limitation period for appeal of an appraisal review board decision only begins to run when proper notice is delivered to the appropriate party. Section 1.07(b) requires the tax official or agency to address the notice to the property owner, the person designated under Section 1.111(f) to receive the notice for the property owner (if that section applies) or, if appropriate, the property owner’s agent at his address according to the most recent record in the possession of the official or agency. If a property owner files a written request for notices to be sent to a particular address, the official or agency shall send the notice to the address stated in the request. The erroneous delivery of a notice and order does not serve to trigger the 45-day period for appeal. A specific statutory scheme sets forth the manner in which property tax representatives may be designated and the effect that designation has on a taxing authority’s obligation to deliver notice. The Texas Administrative Code provides that when an agent is an employee of a subsidiary of the owner, the owner is not required to provide documents supporting that agent’s authority. The agent designation form itself states only that the person naming a tax agent should attach documentation – a suggestion that is not mandatory. Harris County Appraisal District and Harris County Appraisal Review Board v. Drever Partners, Inc., 938 S.W.2d 196 (Tex. App.-Houston [14th District] 1997).

Property owner admitted the receipt of both notice of issuance of order of the appraisal review board determination and a copy of the order signed by current appraisal review board chairman. Sending the notice of appeal to former chairman of review board was insufficient to perfect appeal for judicial review. R. J. Underhill v. Jefferson County Appraisal District, 725 S.W.2d 301 (Tex. App.-Beaumont 1987, no writ).

If an employee of the property owner, but not the appointed fiduciary, receives the appraisal review board order and signs for the receipt of the notice as the property owner’s agent, the notice is presumed delivered. Personal, in-hand delivery to the appointed fiduciary is not necessary. Property owner must file written notice of appeal within 15 days of receiving notice. Copy of order determining protest met requirements sufficiently for sending order and notice of issuance of order, and two documents were not required to be sent. MCI Telecommunications Corp. v. Tarrant Appraisal District, 723 S.W.2d 350 (Tex. App.-Fort Worth 1987, no writ).

Taxpayer protesting an appraisal review board determination was barred from judicial review for failure to file notice within 45 days from receipt of the review board’s determination, the “final order” required by Section 41.47 of the Tax Code. Flores v. Fort Bend Central Appraisal District, 720 S.W.2d 243 (Tex. App.-Houston 1986).

A taxpayer’s notice of intent to file an appeal is proper if the chief appraiser forwards the notice of appeal to the review board during the 15-day filing period; although the taxpayer’s appeal was accomplished through an indirect means, it met the legislative intent of notice to the review board. Texas Conference Association of Seventh-Day Adventists v. Central Appraisal Review Board of Johnson County, 719 S.W.2d 255 (Tex. App.-Waco 1986, writ ref’d n.r.e.).

Where taxpayer was dissatisfied with his property appraisal his exclusive remedies under the Property Tax Code are that of administrative and judicial review within available grounds of protest. When a taxpayer’s protest to tax has been determined by the review board, he may then file suit for judicial review of the board’s decision, but the board’s decision is not a prerequisite to a suit by a taxing unit for delinquent taxes. The statute allows the appraisal board additional time to act by allowing a determination of all protests not only before appraisal records are approved, but “or as soon thereafter as practicable.” Valero Transmission Company v. Hays Consolidated Independent School District, 704 S.W.2d 857 (Tex. App.-Austin 1985, writ ref’d n.r.e.).

The grant of summary judgment in favor of an appraisal district is improper where a question existed pertaining to delivery of written order by the appraisal review board. Taxpayers were not required to comply with Sec. 42.06(a) because the appraisal district had not necessarily complied with Sec. 41.47 notice requirements, specifically, issuance of a written order, and delivery of notice of issuance and a copy of the order to the property owner and chief appraiser. Taxpayers’ failure to timely file notice of appeal under Sec. 42.06 under the circumstances did not deprive the court of jurisdiction to hear the appeal. Sec. 42.09 does preclude appellants from challenging the review board’s determination by any procedure other than the one prescribed by the code. Herndon Marine Products, Inc. v. San Patricio County Appraisal Review Board, 695 S.W.2d 29 (Tex. App.-Corpus Christi 1985, writ ref’d n.r.e.).
These codes affect property owners across the state, in both larger and smaller cities including:

• Anderson Mill
• Fairview
• White Settlement
• Garfield
• Lakeway
• Danbury
• Grapevine
• Justin
• Woodbranch
• Lincoln Park
• Aubrey
• Saginaw
• Selma
• Orchard
• Oyster Creek
• Trophy Club
• Irving
• Shady Hollow
• Granger
• Westworth

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

• Manufacturing/processing
• Bowling alley
• Night club
• Daycare center
• Hotel
• Supermarket
• Warehouse
• Car wash facility
• Regional mall
• Lodging

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

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