Both Texas and the United States as a whole are currently debating property taxes. As affordability becomes one of the main concerns for politicians and citizens alike, states from Georgia to Illinois are engaging in serious debates about property taxes and how they affect people from all walks of life. In Texas, there is a push to eliminate property taxes for homesteads when it comes to school districts, the largest tax Texans face. While the practicality of that can be debated, it does show how significant a strain these taxes have become.
With both federal income taxes in April and Texas property taxes being paid in January, it is easy to lose track of the upcoming appeal season. In fact, a good portion of Texans do not even know that property tax appeals exist. Appeals are not just a tax reduction technique but are guaranteed under the Texas Constitution. Regardless of any future legislation, property tax appeals remain one of the only ways Texans have to lower their taxes and values. In this article, we will go over this constitutional right and how it can be effective for you and your family now and in the future.
The Right to Appeal is Protected by the Texas Constitution
Texans are known for their independent spirit, and this is baked into the Texas Constitution itself. Under the constitution, you have a right to fight your appraised values, getting them to a fair and equal number. Property values are determined by your county appraisal district (CAD), which uses market forces to determine the value of homes and businesses. Appraisal is often closer to an art than a science; however, and there can be a fair amount of interpretation in these numbers.
Under the Texas Constitution, appraisals must be equal for properties in the same location, with similar characteristics. This means age, improvements, and square footage. Appraisals that violate these metrics can and should be appealed to bring them into balance. Appraisals must also accurately reflect what a piece of real estate would sell for on the open market. CADs can only estimate this by using studies of property sales and must resort to blanket values. Appeals can show what an individual property would actually be worth, setting the value to its proper figure.
How Appeals Benefit Property Owners
Appeals can be a potent weapon in your arsenal and act as the only bulwark against incorrect appraisals. Exemptions lower the taxable value, but only appeals can get the initial appraisal correct. Protests and exemptions work perfectly in tandem and are a must for any business or homeowner to use to their fullest. Tax rates cannot be changed in Texas through any mechanism by the taxpayer; property values can. By lowering and correcting these values with an appeal, you can then push your tax bill down. When used with exemptions, significant tax relief can be achieved. It should be noted that exemptions usually only counter school taxes, at least for homeowners, while appeals lower the base of all taxes.
The purpose of appeals is not just to lower tax bills, but to establish the true worth of a piece of real estate. By confirming what your home or business is worth, you are ensuring that you are only paying your fair share. This established value can also be used in the future, acting as a building block for future tax reduction efforts. Annual appeals offer a compounding effect, which tends to bring larger savings every year, which is why many businesses in Texas appeal annually as a matter of cost-cutting. Protests can also be used to remedy basic appraisal errors, such as incorrect square footage, missing exemptions, and the incorrect owner being listed.
Most Texans Overpay on Their Property Taxes
Although the right to appeal is protected by the constitution, only a small portion of the population takes advantage of it. In 2024, only 12.94% of parcels in Texas were protested. This is the second-most ever, being behind 2023’s 13.57%. This is still a major improvement from a decade ago, when only 6.53% of parcels were protested. More Texans are using this right every year, but it is still only a relative drop in the bucket. Most Texans are instead paying the highest taxes they have ever seen, thanks to taxable values going unchallenged. In 2024, over $125 billion in property taxes were levied across Texas, while informal and formal appeals managed to cut taxes by $5.37 billion.
Appeal Season Starts with Notices of Appraised Value
You have the right to appeal, but how do you know when to use it? This starts by looking over your notice of appraised value, which will be mailed out between late March and early April. Overlooking this document is a common mistake that many taxpayers make. This notice will give a breakdown of your property, along with the values that your CAD has appraised your home or business for. You need to look over the basic information first to ensure that it is correct and that you are not missing any exemptions. Any simple errors should be appealed with your CAD at once. Next, you should focus on the market, appraised, and taxable values displayed on your notice. If they seem incorrect, unequal with your neighbors, or show a large jump in value, then this issue should also be explored with an appeal.
Deadline for Property Tax Protests is May 15
The deadline to appeal your taxes is arguably the most important one in Texas. Once it passes, you give up the right to challenge your CAD’s value for the entire year, leaving you stuck with whatever values you were appraised with. This means that after you review your notice, you must be ready to file. May 15 is the typical deadline, but you actually have 30 days after your notice of appraised value was mailed, with whichever date is later serving as your deadline. You must gather your evidence and file before it is too late, which means you will be under a lot of stress to get everything ready in such a short window.
O’Connor Guarantees Your Rights
Texans also have the right to use professional representation for all appeal hearings. While simple errors can often be fixed on your own, it usually takes expert help to address issues that come with value. We at O’Connor are here to help you with every aspect of your property tax journey. We can analyze your appraisal for errors, file exemptions, gather evidence for your appeal, file the protest for you, and represent you at every hearing to help you land the best reduction.
For over 50 years, we at O’Connor have been helping Texans fight for their rights and their financial security. Based in Houston, we know Texas, its people, and its laws better than any national firm, while we have the resources to best your CAD at every level of the appeal ladder. We will push your case to the highest level possible and will not just settle for the bare minimum offer. There is no cost to join us, and you will only be charged a percentage of your winnings if we can lower your taxes. You will also be given a client success consultant who will be with you every step of the way. We can also send out a concierge visit to your home or business.
The Texas Taxpayer’s Bill of Rights
- You have the Right to Fair and Equitable Treatment
- You have the Right to Privacy and Confidentiality
- You have the Right to Understand the Taxes You Pay
- You have the Right to Pay Only What You Owe
- You have the Right to Representation
- You have the Right to Contest a Decision
- You have the Right to Request a Waiver of Penalties
- You have the Right to Simpler Tax Filing
- You have the Right to Courteous, Accessible Assistance from a Real Person
- You have the Right to Know How Government Spends Your Tax Dollars
