How to prepare for a property tax protest

Homeowners in North Texas have a few more days to protest the proposed property tax valuations. Setting the value now is the first step in determining what a taxpayer ultimately pays in property taxes later in the year.

Each appraisal district handles the process a little differently. Dallas, Denton, and Collin Appraisal Districts’ protest deadline is Wednesday, May 15. The Tarrant Appraisal District pushed its protest deadline for homeowners back to May 24.

Read on for expert information on the evidence to collect and the common mistakes to avoid if you plan to protest.

“I WAS NOT ENTHUSIASTIC”

After Ian Jones’ 2024 appraisal notice arrived, he said he got to work on his protest of the appraisal district’s proposed market value for his home in Wylie.

“We got our appraisal notice in the mail and, let's just say, I was not enthusiastic,” Jones told NBC 5.

Jones said he believes the market value, the price an appraisal district believes someone would pay for a property, should be lower. Of the last six times he’s filed a protest, Jones said he succeeded once.

“I have done this multiple times before. This would not be the first time,” said Jones. “This time, I feel like maybe we got a really good shot.”

INFORMATION TO REVIEW, GATHER

Appraisal districts say certain facts about your home carry more weight.

“The condition is going to always be the biggest,” said Brian Swanson, Collin Central Appraisal District Deputy Chief Appraiser.

Swanson explained: under the tax code, an appraisal district must re-appraise a property at least once every three years. In Collin County, there are around 435,000 pieces of property.

“That's a lot divided by just a handful of appraisers that go out and look. So, we're not going to see everything every year,” Swanson said.

Taxpayers may have more information about their property. For example, appraisers don’t see the inside of your house. Swanson said they’re particularly interested in big repairs needed - like the foundation, HVAC system, roof or windows.

“Major items like that,” Swanson said. “We ask that you bring us copies of the quotes that you've received from various contractors that you would talk with.”

Appraisers have access to local permits pulled for your address. Swanson said the taxpayer can bring more information about whether the repairs are done.

“We can kind of tell what may be happening property to property, but we don't know if it's been fixed,” said Swanson. “Has any of this been done?”

When it comes to condition, Cheryl Jordan with the Dallas Central Appraisal District said it is focused on what is not typical for homes, like yours, in your neighborhood. You’d want to share if your home needs more repair work than similar homes.

“A lot of people are able to sell their house as is,” Jordan explained.

Jones said a real estate agent can help and many offer to pull comps for homeowners at no charge.

“Ask a realtor: What do you think my property is worth? Even tell them, 'Hey, I want to fight the appraisal district on my value. Ask them to give you some comps of what properties similar to yours are selling for in your neighborhood,” said Jordan.

Closely match the neighborhood code – as defined by the appraisal district. You can find the code for each address on an appraisal district’s website.

If you’ve decided to protest the value, you have to file a written notice by the deadline. The Dallas, Denton, Collin and Tarrant Appraisal Districts offer an electronic filing option on their websites.

After a cyber-attack this year, Tarrant Appraisal District announced its online protest portal is back up.

HOW TO ASSEMBLE EVIDENCE PACKETS

Protest forms include the option to protest based on market value and unequal value. For many typical home value protests: checking the box for both opens the door to presenting the widest range of evidence.

Include what you think your value should be. You may go through an informal process first with the local appraiser who will consider the value you proposed when you filed your written protest. The appraiser may contact you via email to make an offer.

If that happens and you disagree with the offered value, your protest may go to an appraisal review board where the appraisal district and homeowner each lay out their case.

“The burden of proof is on the appraisal district to prove up the value,” said Senior Property Tax Consultant at Will Wiggins North Texas Property Tax Services.

Still, Wiggins explained the property owner is expected to bring convincing evidence. To gather evidence, Wiggins said to review the information the appraisal district used to determine your value.

“I would ask to see the district’s evidence of value first and know what you're up against,” Wiggins said.

A property owner is entitled to see a copy of the information the appraisal district plans to introduce at your appraisal review board hearing.

In addition to pulling sales comps, Wiggins said a homeowner should look at other appraised values for neighbors who have homes like yours. You can go to your appraisal district website to see your neighbors’ assessed market value. The information is public. Be sure and account for differences like pools, building materials and square footage.

“Take a look at other appraisals on properties that are like yours,” explained Wiggins. “They should be in line with yours. If not, then you need to report that.”

Put together an evidence packet with photos, receipts and quotes for repairs, sales price comps, appraised values for similar homes and an independent appraisal – if you have one. If you’re going to an appraisal review board hearing, bring enough copies for each member, the appraisal district and yourself.

Wiggins said to keep the evidence and your arguments strictly focused on facts supporting your opinion of your home value.

“I think, primarily, one of the biggest mistakes I see is people come in and they want to talk about their taxes. I always advise people to stay away from that,” Wiggins said.

Entities like school districts, cities and counties set tax rates. Appraisal districts do not.

Wiggins said the ARB would want to know about your current value. Use sales comps as close to January 1, 2024, as possible.

“Another common mistake is to talk about last year's value or how the value went from this to this. That's not as relevant as the current value,” said Wiggins. “All that matters is the value that's in play this year.”

Homeowners can hire a consultant to handle the protest. Consumers may pay a flat fee, a contingency, or a combination of the two. Read the fine print and understand if the cost helps your tax situation.

If you have exemptions, like a homestead exemption that caps how much of your value is taxable, find out if the market value protest could reasonably lower the taxes you would pay.

You can read more about the cap on homestead value increases here. You’ll also find information about the new “circuit breaker” limitation in effect for other properties.

The appraisal district can’t increase the value because you’ve protested its appraisal. If you succeed in lowering the appraisal, it wouldn’t impact your home’s sale price if you later put it on the market.

Homeowners should also ensure they are taking the exemptions they are eligible to take. That may be homestead, disabled veteran or over 65 exemptions. You don’t have to pay anyone to file the exemption for you. Contact your local appraisal district. It’s often a one-page form to fill out – along with supporting documentation of eligibility. Find a list of available exemptions here.

You can find links to information about what to expect during the protest process and options if you disagree with the outcome here.

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