Property owners have another tax protest tool: binding arbitration
Tax protest process continues
July 24, 2024, Wilson County News
Texas property owners who protested their property taxes before the Appraisal Review Board (ARB) may take yet another step in the property tax protest process. That step is binding arbitration.
After the ARB hearing, the property owner receives the results by certified mail. Property owners — if they are dissatisfied with the decision — then have 60 days to file for binding arbitration.
Binding arbitration The Texas Legislature created the binding arbitration option in 2005 to provide an additional opportunity for remedy in the protest process. It is an alternative to appealing an ARB order to district court.
Steps and information about filing for binding arbitration are included with the ARB’s notice to the property owner.
In addition to completing the request for binding arbitration, a deposit is required. For example, for a residence homestead appraised at $500,000 or less, a deposit (cashier’s check or money order payable to the Texas Comptroller of Public Accounts) for $450 is due with the request for binding arbitration. If the property owner gets the appraised value reduced, the Comptroller refunds all but $50 of the deposit.
The form explains, “The deposit minus the Comptroller’s fee will be refunded to the property owner if the arbitrator determines that the value is nearer to the property owner’s opinion of value stated in the request for binding arbitration than the value as determined by the ARB.”
Submit a request for binding arbitration
The “Request for Binding Arbitration” form available from the Texas Comptroller’s office is used “… to file a request for binding arbitration with an appraisal district concerning a dispute of an appraisal review board (ARB) order of determination. As an alternative to filing an appeal to district court, a property owner is entitled to appeal through binding arbitration an ARB order that only determines a protest concerning the appraised or market value of property if:
(1) the property qualifies as the owner’s residence homestead under Tax Code Section 11.13, or the appraised or market value of the property as determined by the appraisal review board order of determination is $5 million or less; and
(2) the protest was filed under Tax Code Section 41.41(a)(1) (appraised or market value) or Tax Code Section 41.41(a)(2) (unequal appraisal).”
The form continues with instructions on when to file, and what to file. “A property owner or agent must file the following with the appraisal district not later than the 60th day after the date the property owner receives notice of the final ARB order:
(1) a completed request for binding arbitration using this form;
(2 ) a deposit in the required amount … by cashier’s check or money order payable to the Texas Comptroller of Public Accounts (a deposit is required for each request for arbitration);
(3) a copy of the ARB order determining protest for the property for which binding arbitration is requested;
(4) Form 50-791 if an agent is filing on behalf of a property owner.”
Resources
•Texas Comptroller of Public Accounts website, comptroller.texas.gov/ taxes/property-tax/
•Facebook group “Wilson County Taxpayers Association”
•Wilson County Taxpayer’s Association website, www.wilsoncountytaxpayersassociation.com
•Wilson County Appraisal District, 830-393-3065, wilson-cad.org
•Michael Berlanga, CPA and certified property tax consultant, texastruetax.com
July 24, 2024, Wilson County News
Texas property owners who protested their property taxes before the Appraisal Review Board (ARB) may take yet another step in the property tax protest process. That step is binding arbitration.
After the ARB hearing, the property owner receives the results by certified mail. Property owners — if they are dissatisfied with the decision — then have 60 days to file for binding arbitration.
Binding arbitration
Steps and information about filing for binding arbitration are included with the ARB’s notice to the property owner.
In addition to completing the request for binding arbitration, a deposit is required. For example, for a residence homestead appraised at $500,000 or less, a deposit (cashier’s check or money order payable to the Texas Comptroller of Public Accounts) for $450 is due with the request for binding arbitration. If the property owner gets the appraised value reduced, the Comptroller refunds all but $50 of the deposit.
The form explains, “The deposit minus the Comptroller’s fee will be refunded to the property owner if the arbitrator determines that the value is nearer to the property owner’s opinion of value stated in the request for binding arbitration than the value as determined by the ARB.”
Submit a request for binding arbitration
The “Request for Binding Arbitration” form available from the Texas Comptroller’s office is used “… to file a request for binding arbitration with an appraisal district concerning a dispute of an appraisal review board (ARB) order of determination. As an alternative to filing an appeal to district court, a property owner is entitled to appeal through binding arbitration an ARB order that only determines a protest concerning the appraised or market value of property if:
(1) the property qualifies as the owner’s residence homestead under Tax Code Section 11.13, or the appraised or market value of the property as determined by the appraisal review board order of determination is $5 million or less; and
(2) the protest was filed under Tax Code Section 41.41(a)(1) (appraised or market value) or Tax Code Section 41.41(a)(2) (unequal appraisal).”
The form continues with instructions on when to file, and what to file. “A property owner or agent must file the following with the appraisal district not later than the 60th day after the date the property owner receives notice of the final ARB order:
(1) a completed request for binding arbitration using this form;
(2 ) a deposit in the required amount … by cashier’s check or money order payable to the Texas Comptroller of Public Accounts (a deposit is required for each request for arbitration);
(3) a copy of the ARB order determining protest for the property for which binding arbitration is requested;
(4) Form 50-791 if an agent is filing on behalf of a property owner.”
Resources
•Texas Comptroller of Public Accounts website, comptroller.texas.gov/ taxes/property-tax/
•Facebook group “Wilson County Taxpayers Association”
•Wilson County Taxpayer’s Association website, www.wilsoncountytaxpayersassociation.com
•Wilson County Appraisal District, 830-393-3065, wilson-cad.org
•Michael Berlanga, CPA and certified property tax consultant, texastruetax.com