Protest Property Tax Leasing Property 41.413

Property Tax Protest by Lessee Responsible for Paying Taxes is OK if Owner Does Not Protest

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) An owner of real property shall send to a person leasing property under a contract described by Subsection (b) a copy of any notice of appraised value of the property received by the property owner. The property owner must send the notice not later than the 10th day after the date the property owner receives the notice. Failure of the property 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. This subsection does not apply if the property owner and the person leasing the property have agreed in the contract to waive the requirements of this subsection or that the person leasing the property will not protest the appraised value of the property.

(e) A person leasing real property under a contract described by Subsection (b) may request that the chief appraiser of the appraisal district in which the property is located send the notice described by Subsection (d) to the person. Except as provided by Subsection (f), the chief appraiser shall send the notice to the person leasing the property not later than the fifth day after the date the notice is sent to the property owner if the person demonstrates that the person is contractually obligated to reimburse the property owner for the taxes imposed on the property.

(f) A chief appraiser who receives a request under Subsection (e) is not required to send the notice requested under that subsection if the appraisal district in which the property that is the subject of the notice is located posts the appraised value of the property on the district’s Internet website not later than the fifth day after the date the notice is sent to the property owner.

(g) A person leasing property under a contract described by this section may designate another person to act as the agent of the lessee for any purpose under this title. The lessee must make the designation in the manner provided by Section 1.111. An agent designated under this subsection has the same authority and is subject to the same limitations as an agent designated by a property owner under Section 1.111.

Added by Acts 1995, 74th Leg., ch. 581, Sec. 1, eff. Aug. 28, 1995.

Amended by:

Acts 2017, 85th Leg., R.S., Ch. 332 (H.B. 804), Sec. 1, eff. September 1, 2017.

Acts 2021, 87th Leg., R.S., Ch. 598 (S.B. 1088), Sec. 2, eff. September 1, 2021.

Acts 2021, 87th Leg., R.S., Ch. 614 (S.B. 1421), Sec. 2, eff. September 1, 2021.

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.

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