Property Tax Receive Hearing 41.45f

Property Owner can Petition District Court for Property Tax Protest Not Scheduled for Hearing

Section 41.45(f) – Hearing on Property Tax Protest – What if You Do Not Receive a Hearing?

What happens if you file a property tax protest and the appraisal review board (ARB) declines to schedule a hearing? You cannot file a judicial appeal until you have exhausted administrative remedies (property tax protest at the ARB).

Property owners seeking property tax reductions may file suit if they are “denied a hearing to which the property owner is entitled”. The meaning of the language is somewhat ambiguous. Does it mean the owner is entitled to a hearing if no hearing was scheduled? Is the owner entitled to a new hearing if he protested on unequal appraisal and market value but the ARB panel only considered market value? Should a new hearing be scheduled if the owner protested market value and the ARB panel made a decision on market value but the appraisal district presented information not included in the HB201 package?

These issues are currently being litigated and should be resolved within two to three years.

Sec. 41.45(f) – Property Tax Receive Hearing

(f) A property owner who has been denied a hearing to which the property owner is entitled under this chapter may bring suit against the appraisal review board by filing a petition or application in district court to compel the board to provide the hearing. If the property owner is entitled to the hearing, the court shall order the hearing to be held and may award court costs and reasonable attorney fees to the property owner.

Acts 1979, 66th Leg., p. 2306, ch. 841, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 171, ch. 13, Sec. 138, eff. Jan. 1, 1982; Acts 1987, 70th Leg., ch. 794, Sec. 1, eff. June 18, 1987; Acts 1989, 71st Leg., ch. 796, Sec. 37; Acts 1991, 72nd Leg., ch. 836, Sec. 3.1, eff. Sept. 1, 1991; Acts 1995, 74th Leg., ch. 828, Sec. 2, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1039, Sec. 38, eff. Jan. 1, 1998; Acts 1999, 76th Leg., ch. 416, Sec. 3, eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 463, Sec. 2, eff. Jan. 1, 2000; Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(99), eff. Sept. 1, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 626 (H.B. 538), Sec. 2, eff. January 1, 2008.

Acts 2009, 81st Leg., R.S., Ch. 1267 (H.B. 1030), Sec. 4, eff. June 19, 2009.

Acts 2011, 82nd Leg., R.S., Ch. 771 (H.B. 1887), Sec. 11, eff. September 1, 2011.

Acts 2011, 82nd Leg., R.S., Ch. 924 (S.B. 1546), Sec. 1, eff. September 1, 2011.

Acts 2013, 83rd Leg., R.S., Ch. 1259 (H.B. 585), Sec. 21, eff. January 1, 2014.

Acts 2015, 84th Leg., R.S., Ch. 1201 (S.B. 1394), Sec. 1, eff. January 1, 2016.

Acts 2017, 85th Leg., R.S., Ch. 80 (H.B. 455), Sec. 1, eff. September 1, 2017.

Acts 2017, 85th Leg., R.S., Ch. 744 (S.B. 1286), Sec. 1, eff. September 1, 2017.

Acts 2019, 86th Leg., R.S., Ch. 944 (S.B. 2), Sec. 62, eff. September 1, 2020.

Acts 2021, 87th Leg., R.S., Ch. 533 (S.B. 63), Sec. 17, eff. September 1, 2021.

Acts 2021, 87th Leg., R.S., Ch. 644 (H.B. 988), Sec. 17, eff. January 1, 2022.

Acts 2021, 87th Leg., R.S., Ch. 965 (S.B. 1919), Sec. 1, eff. September 1, 2021.

Cross References:
Right to protest by taxpayer, see Sec. 41.41.
Determination of protest, see Sec. 41.47.
Notice of Protest Hearing, see Sec. 41.46.
Appraisal review board record requirement, see Rule Sec. 9.803.

Notes:
Appearance at appraisal review board hearing in person or by affidavit is a mandatory condition precedent to filing suit. Webb County Appraisal District v. New Laredo Hotel, Inc., 792 S.W.2d 952 (Tex. 1990).

Appraisal review board members perform quasi-judicial functions so that immunity did apply in barring claims against them in the performance of their duties. Three appraisal review board panel members were sued by a tax consultant claiming negligence in a value determination for not basing the value reduction on a preponderance of the evidence presented at the protest hearing. The members asserted the affirmative defense of judicial immunity. Sledd v. Garrett, 123 S.W.3d 592 (Tex. App.-Houston [14th Dist.] 2003, pet. denied).

An unadjudicated protest filed by a taxpayer does not bar a hearing pursuant to a motion for late correction under Section 25.25(d). Dismissal of a protest for failure to appear at a hearing is not an adjudication of the rights of the parties. The taxpayer was not entitled, however, to recover attorneys fees under Section 41.45 as a result of the denial of the hearing on the motion for late correction. Koger Equity, Inc. v. Bexar County Appraisal Review Board, 123 S.W.3d 502 (Tex. App.-San Antonio, 2003, no pet. h.).

Tax Code Section 25.25(c), subject to a five-year limitation, gives the appraisal review board the authority to change the appraisal roll on motion of the chief appraiser or a property owner. Section 25.25(b) does not contemplate the filing or presentation of any protest or authorize the appraisal review board to review the chief appraiser’s decision. Western Athletic Clubs, Inc. v. Harris County Appraisal District and Harris County Appraisal Review Board, 56 S.W.3d 269 (Tex. App. – Amarillo 2001, no pet.).

An appraisal review board exceeds its authority by having a written procedure that a taxpayer’s fiduciary authorization must be filed prior to the filing of a protest or motion. Tarrant Appraisal Review Board v. Martinez Brothers Investments, Inc., 946 S.W.2d 914 (Tex. App.-Fort Worth 1997, no writ).

A taxpayer is entitled to judicial review of the appraisal review board order – he is not required to meet his burden of proof or present evidence at the appraisal review board hearing. When the appraisal review board issues its order, the taxpayer has exhausted his administrative remedies. National Pipe and Tube Company v. Liberty County Appraisal District, 805 S.W.2d 593 (Tex. App.-Beaumont 1991, writ denied).
These codes affect property owners across the state, in both larger and smaller cities including:

• Rowlett
• Florence
• Wild Peach Village
• Blue Ridge
• Corinth
• Ovilla
• DeSoto
• Selma
• Addison
• Shenandoah
• Georgetown
• Sunset Valley
• Pine Island
• Hitchcock
• Manvel
• Deer Park
• White Settlement
• Cross Roads
• Santa Fe
• Marshall Creek

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

• Warehouse
• Office warehouse
• Motel
• Car wash facility
• Office building
• Daycare center
• Shopping center
• Skating rink
• Regional mall
• Strip shopping center

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

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