How to Appeal a Property Tax Assessment

If you want to know how to appeal a property tax assessment, you’ve likely just received a letter. Or, you’re reviewing your property taxes online. It comes straight from the official source. So, there’s no doubting (or believing) it’s true. Just how did the assessor come up with this figure and what can you do to dispute it?

Generally property taxes are calculated by multiplying the home’s assessed value by the local property tax rate. Now, that sounds both obvious and confusing, but if you work the numbers, you’ll begin to uncover the formula.

How to Appeal a Property Tax Assessment

If you’ve just received a letter from the local property appraiser or tax collector and believe that it’s incorrect, re-read the entire document carefully. Don’t scan it -- peruse it and be sure to check the back. More than likely, you have 30 days to challenge the assessment and the steps for doing so are probably included. However, if the procedure isn’t spelled out or it’s not clear, here’s how to appeal a property tax assessment:

●      Consider the “hassle factor” first. Before you invest real time and effort with the process be sure that’s it’s actually worth pursuing. Run the numbers and look carefully at the results. If you save a good portion, then proceed. But, if it’s negligible, then it’s probably not worth the time and effort.
●      Check the data. Next, go over the information provided. Is it accurate? Look for the number of bedrooms and bathrooms, living square footage, the lot size, et cetera. If something is off, this might be the culprit.
●      Get information on comparable properties. If the information is accurate, you need to know about nearby comparable properties. You can find comps through a CMA provided by a local real estate professional. Or, pay for a formal assessment.
●      Present your case. Once you have the information, you can then ask for a review and present your case. Provide the evidence to the tax collector or property appraiser.
●      File an appeal. If you aren’t successful, you can file an appeal, usually for a small fee.


It’s important to note, this process isn’t without risks. It is possible bringing the data under more scrutiny might have a negative consequence in a reverse effect. It could cause more of a tax increase due to the examination. Also, if you are successful, remember you are essentially devaluing your home. (That’s particularly bad if you’re about to list it for sale.)

Article Courtesy of the Proactive Lending Group, your best choice for Texas Commercial loans.

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