Property Tax Inquiries Call 713.290.9700

Protest Property Tax Leasing Property 41.413

Section 41.413 – Protest by Person Leasing Property

A person leasing property sometimes pays property taxes. This could include a person leasing a car, copy machine, single-tenant office building or a 1000 square foot tenant in a regional shopping mall.

This section of the Texas Property Tax Code allows a person leasing property (the lessee), who pays the property taxes, to protest if the owner (leaser) does not file a protest for the property. While the owner maintains the right to protest the property, this provision allows the lessee to protest the property taxes. Lessees should discuss whether the leaser plans to handle the property tax protest.

Since the lessee pays property taxes, it is logical for the lessee to handle the property tax appeal (or engage a property tax consultant). However, in some cases the lessee does not actively appeal property taxes on an annual basis. In this situation, the owner (leaser) may want to handle the property tax protest for the lessee. Although the owner does not directly benefit during the period when the tenant pays the property taxes, he will benefit by having a lower assessed value when the lease terminates.

Sec. 41.413. Protest by Person Leasing Property.

(a) A person leasing tangible personal property who is contractually obligated to reimburse the property owner for taxes imposed on the property is entitled to protest before the appraisal review board a determination of the appraised value of the property if the property owner does not file a protest relating to the property.

(b) A person leasing real property who is contractually obligated to reimburse the property owner for taxes imposed on the property is entitled to protest before the appraisal review board a determination of the appraised value of the property if the property owner does not file a protest relating to the property. The protest provided by this subsection is limited to a single protest by either the property owner or the lessee.

(c) A person bringing a protest under this section is considered the owner of the property for purposes of the protest. The appraisal review board shall deliver a copy of any notice relating to the protest and of the order determining the protest to the owner of the property and the person bringing the protest.

(d) The property owner shall timely send to the person leasing the property a copy of any notice of the property’s reappraisal received by the property owner. Failure of the owner to send a copy of the notice to the person leasing the property does not affect the time within which the person leasing the property may protest the appraised value.

Added by 1995 Tex. Laws, p. 3378, ch. 581, Sec. 1.

Cross References:
Appeal to district court by person leasing property, see Sec. 42.015.
Notice of appraised value to property owner, see Sec. 25.19.
Notice of change in records to property owner, see Sec. 41.11.
Notice of certain matters before protest hearing, see Sec. 41.461.
Notice of protest hearing, see Sec. 41.46.
Protest deadline, see Sec. 41.44.
Protest determination, see Sec. 41.47.
Protest right, see Sec. 41.41.

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

  • Brookside
  • Duke
  • Meadows Place
  • Jarrell
  • Pelican Bay
  • Balch Springs
  • Oak Ridge North
  • Universal City
  • Addison
  • Southlake
  • Seabrook
  • Lake Jackson
  • Porter Heights
  • Timberwood Park
  • Hudson Bend
  • Onion Creek
  • Westlake
  • Farmersville
  • Bacliff
  • Fairchilds

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

  • Airplane hangar
  • Office building
  • Student housing
  • Multifamily
  • Convenience store
  • Hospital
  • Single-tenant retail
  • Warehouse
  • Community shopping center
  • Auto service garage

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

Sign up to have O’Connor & Associates protest your commercial or residential property taxes.
You pay NOTHING unless we reduce your taxes!

Flooded by Harvey?

You may qualify for an IRS tax refund.

Click here to get the details!
This program is only for properties within the state of Texas