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Property Tax Property After January 1 41.412

Section 41.412 – Person Acquiring Property After January 1

People who acquire property after January 1 are often uncertain whether they can appeal, particularly if they purchase the property after a property tax protest is filed but before the property tax protest hearing. This section of the Texas Property Tax Code provides clear guidance on both issues. Even though January 1 is the key date for most Texas property tax issues, persons acquiring property after January 1 have the same right to file a timely property tax appeal (the appeal date doe not change nor is a new appeal option opened because of the purchase). For example, if John Jones purchases property in March, he can still file a property tax protest in April. However, if he purchases properly invoiced property in September, he cannot file an appeal under Section 41.41. However, he may be able to appeal under section 25.25.

Purchasing a property after a timely property tax protest is filed and before the property tax hearing does not alter the ability to appeal. Further, either the buyer, seller or tax consultant for either can attend the hearing. For the purchase of a home, the purchaser would most likely attend since he would benefit from the property tax reduction. For large commercial properties, the responsibility for the property tax appeal and allocation of savings is typically a contractual matter between buyer and seller.

Recent purchases of property should consider filing an appeal even if the assessed value is less than the purchase price. Property tax appeals on unequal appraisal are often successful and are a good defense for “sales chasing” (selective reappraisal of recently sold properties).

Sec. 41.412. Person Acquiring Property After January 1.

(a) A person who acquires property after January 1 and before the deadline for filing notice of the protest may pursue a protest under this subchapter in the same manner as a property owner who owned the property on January 1.

(b) If during the pendency of a protest under this subchapter the ownership of the property subject to the protest changes, the new owner of the property on application to the appraisal review board may proceed with the protest in the same manner as the property owner who initiated the protest.

Added by 1987 Tex. Laws, ch. 451, Sec. 1.

Cross References:
Right of protest, see Sec. 41.41.
Protest of failure to give notice, see Sec. 41.411.
Deadline for filing protest, see Sec. 41.44.

Notes:
The subsequent purchaser of property is not barred from contesting the property’s value under Section 25.25(d) when the previous owner had timely filed a protest of the property’s value and then withdrew the protest because of the pending land sale. Jim Sowell Construction Company, Inc. v. Dallas Central Appraisal District, 900 S.W.2d 82 (Tex. App.-Dallas 1995, writ denied).

Bank foreclosed on property May 4, 1983. Required notices were sent in June of 1983 to the January 1 owner of the property. Bank did not get notice of appraised value until it received its tax statement in the fall of 1983. Court of appeals held that bank was denied due process because the Tax Code did not give him an opportunity to protest. Bank of America National Trust & Savings Association v. Dallas Central Appraisal District, 765 S.W.2d 451 (Tex. App.-Dallas 1988, writ denied). (Note: Sec. 41.412, adopted in 1987, addresses this issue.)

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

  • Denton County
  • Bexar County
  • Harris County
  • Williamson County
  • Fort Bend County
  • Galveston County
  • Tarrant County
  • Starr County
  • Nueces County
  • Scurry County
  • Walker County
  • Marion County
  • Andrews County
  • Webb County
  • Comanche County
  • Hays County
  • Angelina County

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

  • Lumber storage
  • Car wash facility
  • Discount store
  • Multifamily
  • Amusement park
  • Regional mall
  • Single-tenant retail
  • Mobile home park
  • Retail
  • Night club

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

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