A bi-monthly insider guide to the confusing world of property taxation from BRUSNIAK TURNER. Providing insight and saving lawyers research time since 1981

HUNTING FOR ERRORS IN PROPERTY TAX BILLS AKA “WHERE'S WALDO?"

© John Brusniak 2023 

In my last newsletter, I covered last-ditch remedies for errors that aren't discovered until a property tax bill arrives. In this article, we'll talk about where to look for errors. The conversation with your client usually starts with, “This tax bill can't be right. Will you look at it?”

Where's Waldo?

Finding errors in a tax bill is like playing “Where's Waldo?” During the regular Spring protest season, the game is easy. Notices are sent to taxpayers alerting them to look for errors in their prospective bills. (Some notices are better than others. ) Remedies are explained and protest forms suggesting areas of disagreement are included. 

Did Waldo Disappear?

Once the actual bill is sent, Waldo becomes nearly impossible to find. The tax bill contains no hint of remaining fixes, and the verbiage is notoriously difficult to understand. No standard tax bill phrasing exists. Tax assessors choose their own wording and format. Some assessors use clear terminology and provide information and explanations. Others, not so much.

LOOKING FOR WALDO

Look in four places. Don't get distracted by what those places might be called.

1) THE APPRAISED VALUE This is the amount the property would have sold for on January 1 of the current tax year.

2) THE LIMITED VALUE This is the maximum value to which a property may be raised over the prior year's value.

3) SPECIAL VALUES This is a low tax value applied to certain favored property types. Examples: farms, ranches, timber production, golf courses, inventories of merchandise.

4) THE TAXABLE VALUE This is the amount on which the tax is calculated after (any) exemptions are deducted. 

The Most Likely Errors

Make sure the property's appraised value is not substantially wrong! As explained in my last newsletter, homesteads overvalued by more than 25% and all other properties overvalued by more than 1/3 are entitled to have their values cut. The deadline to request a correction is January 31. 

Limitations on Valuation Increases

The value of a homestead can only be raised by 10% a year regardless of how much its market value has increased. Verify that the appraisal district has properly classified the property as a homestead. Starting in 2024, a new 20% limit will apply to increases in the value of all other real property.

Special Values

Special valuations result in taxation at a tiny fraction of market value. Barring a notice problem, no late claims for special valuation are allowed. Remember to apply for them by April 30. 

Homestead Exemptions

All homeowners qualify for general homestead exemptions. Additional exemption amounts are available to: Persons 65 and older Persons with disabilities 100% disabled veterans Surviving spouses of: 100% disabled veterans military members and first responders who died on duty Homestead owners over the age of 65 or disabled receive an added benefit. Their future school district taxes are permanently frozen or locked. Other taxing units are allowed to lock their taxes down, too. Exemptions may be claimed up to two years in arrears. 

Other Exemptions

Churches, schools, and certain charitable organizations can claim exemptions up to five years in arrears. All others need to remember to apply for them by April 30. 

Don't Forget to Look For...

The silly errors. Bills for property not owned by your client or not owned on January 1. Property that was not located in the county that is taxing it. Property that was taxed more than once in the same tax year. Property that was taxed on miscalculations or on an erroneous rendition. (Yes. These things really happen.) 

Still Can't Find Waldo?

You can request property tax account records from the appraisal district. The Texas Public Information Act requires governmental entities to respond to written record requests (including online requests, if available) within 10 business days. Homestead owners are entitled to receive the records of comparable properties used during the valuation process. 

One Last Thought

Don't call or write to your tax assessor looking for help. The tax assessor is just a bill collector. You need to request relief in writing from the appraisal district or appraisal review board. Forms and manuals published by the Comptroller of Public Accounts to assists with filing protests, motions, and applications can be found here on our website. 

COMING UP NEXT Notices, claims, and forms. Oh my!