So, how did you like your 2022 property tax appraisal? It is akin to sitting on not just one thumbtack but a slew of thumbtacks and instead of thumbtacks, they are nine-inch nails with real sharp points that are going straight into your tush. That is a pretty accurate description from the majority of Texans that opened their property tax appraisal notice this month.
“The Texas real estate market is growing as fast as we have ever seen it in the state’s history,” said Alvin Lankford, president of the Texas Association of Appraisal Districts.
Now before you head down to your local appraisal district with pitchfork in hand, it is important to remember that the appraisal district only sets the market value of your property. They do not set the tax rate. The tax rate is set by your respective city and county taxing districts.
The silver lining is that you can protest your appraisal but there is a hard deadline to do so. You have 30 days from the postmark of your appraisal notice to file a Notice of Protest. If you do not file that Notice of Protest then whatever the appraised value the district set for your property will be what determines your property taxes for the year.
The Notice of Protest form was included along with your tax appraisal. You can also file your intent to protest by logging onto your appraisal district’s website which gives you the option of filing your protest electronically.
So, you have filed your notice of protest, now what?
The first thing you want to do is make sure you have all the exemptions you are entitled to on your home. With a homestead exemption, the appraised value can only increase a maximum of 10 percent from the prior year. If you are 65 or older or disabled you are eligible for another exemption. Those two exemptions could equal thousands of saved dollars so make sure your exemptions are listed with your property.
The next step is to attack the market value. The market value is what the appraisal district estimates your property would sell for on January 1st. This is the value you are disputing when you file an appeal. Your goal is to drop it below the appraised or assessed value.
The good news is there are several ways you can lower your market value.
You can ask your local real estate agent to run some “comps” or comparable sales of other homes near your property. You want to use the ones that have sold for less than what the appraisal district said is your home’s market value. If you can’t find any good comps that help, then you want to scrutinize if those homes had updates or repairs that your home does not have. For example, do those homes have a new HVAC system, new windows, or was it completely remodeled? If so, then just because you may have the same number of bedrooms and bathrooms it does not mean your homes are comparable.
The other thing you can do is look at your home with a really critical eye and take photos. If you have a water stain on the ceiling, flooring that needs to be replaced, cracks in your sheetrock from a foundation shift, your driveway or sidewalk has cracks or need to be replaced, your appliances are more than five years old and so on, then take plenty pictures because that will be what you submit to the appraisal district to dispute your market value.
Along with photos of needed repairs, it is also helpful if you get estimates on how much it will cost to replace the leaky roof or new air conditioner.
There is nothing to lose by filing a protest and taking an afternoon to gather the information you need to prove your case for a lower appraisal. Even if your appraisal is dropped by two or three percent, that will be a lower starting point for your 2023 property appraisals.
Do not delay in filing your protest. That is the first step in getting your appraisal down and saving yourself some money.
