The Importance of Challenging Property Taxes
Given that Texas has the seventh highest property tax rate in the country, actively appealing your property taxes could lead to significant financial savings over time. It's advisable to challenge your assessment yearly to mitigate any incremental increases.
Understanding Your Notice of Appraised Value. If you haven’t received your notice, it can be accessed through the property search feature on your county’s website.
- Market Value: The estimated selling price of your property as of January
- Assessed/Net Appraised Value: Adjusted value considering any homestead exemptions or limitations.
- Taxable Value: The amount upon which your property taxes are calculated after all exemptions
Discrepancy Between Tax-assessed and Market Value:
The tax-assessed value, intended to mirror the market value, often falls short as it is based on broader regional metrics rather than individual property assessments. This generalization can lead to significant discrepancies.
My best advice is to hire a professional to protest your taxes!!! Decide whether or not you need help, and if you do here are a few companies I'd recommend reaching out to.
If you decide to tackle this on your own here are some things you'll need to do:
1. File a Notice of Protest: Use Form 50-132 available from the County Appraisal District or online before the May 15 deadline.
2. Prepare for Your Hearing: Gather evidence such as a comparable market analysis, documentation of your home’s condition, or any factors that could detract from your property’s value, like proximity to heavy traffic. If you need help gathering more sales data please reach out to me!
At the Hearing: Presenting Your Case
- Demonstrate market value with recent sales of similar homes.
- Document any structural or maintenance issues that might devalue your property.
- Highlight location drawbacks and, if applicable, present a settlement statement that supports a purchase price lower than the appraised value.
Key Points for Your Hearing Day:
- Focus solely on disputing the appraised value, not the tax rate.
- Maintain professionalism and ensure all documentation is well-prepared.
- If dissatisfied with the initial outcome, you have the right to request a formal hearing.
Travis County offers webinars and extensive resources to help you navigate the protest process. So you don't have to feel all alone in this endeavor.
Protesting your property tax is not just a right but a necessary strategy to ensure you are only paying taxes on the fair market value of your property. This annual review can prevent unwarranted tax increases and protect your financial interests in one of the nation’s hottest real estate markets. Don't forget I am always here to offer advise and guidance, don't hesitate to reach out!
-Ami
