Texas Property Tax Value Arbitration
The 2005 Texas legislature gave property owners a new tool for the tax protest process - legally binding arbitration. House
Bill 182 and Senate Bill 1351 now give property owners the option of appealing an Appraisal Review Board order through arbitration rather than state district court.
If a property owner disputes their property's appraised value, they can appeal it to their local ARB. The ARB must deliver notice of the binding arbitration option and a copy of the form when it delivers notice determining a protest. Provided that the ARB's determination is $1 million or less, then the property owner can take the case and go to an independent Arbitrator for resolution.
By law, the Texas Comptroller's office administers the arbitration program but takes no part in the Arbitrator's final decision. The arbitrator can consider only disputes concerning appraised values and market values. The decision of the selected Arbitrator is binding and must be accepted by the property owner and the appraisal district.
Property owners submit the necessary paperwork for binding arbitration along with a $500 deposit to the appraisal district. The appraisal district completes the form and sends everything to the Comptroller's office for processing. Property owners must file the request for binding arbitration and deposit with the county appraisal district not later than the 45th day after
the date the property owner receives notice of the order. A property owner must choose binding arbitration or an appeal to district court, not both.
For more information regarding arbitration or to select an Arbitrator from the Comptroller's Registry, please contact me or the Texas Comptroller's Property Tax Division at ptd.cpa@cpa.state.tx.us or 1.800.252.9121.
Bill 182 and Senate Bill 1351 now give property owners the option of appealing an Appraisal Review Board order through arbitration rather than state district court.
If a property owner disputes their property's appraised value, they can appeal it to their local ARB. The ARB must deliver notice of the binding arbitration option and a copy of the form when it delivers notice determining a protest. Provided that the ARB's determination is $1 million or less, then the property owner can take the case and go to an independent Arbitrator for resolution.
By law, the Texas Comptroller's office administers the arbitration program but takes no part in the Arbitrator's final decision. The arbitrator can consider only disputes concerning appraised values and market values. The decision of the selected Arbitrator is binding and must be accepted by the property owner and the appraisal district.
Property owners submit the necessary paperwork for binding arbitration along with a $500 deposit to the appraisal district. The appraisal district completes the form and sends everything to the Comptroller's office for processing. Property owners must file the request for binding arbitration and deposit with the county appraisal district not later than the 45th day after
the date the property owner receives notice of the order. A property owner must choose binding arbitration or an appeal to district court, not both.
For more information regarding arbitration or to select an Arbitrator from the Comptroller's Registry, please contact me or the Texas Comptroller's Property Tax Division at ptd.cpa@cpa.state.tx.us or 1.800.252.9121.
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