Texas appraisal districts have become much more aggressive and are regularly increasing property taxes. The best option for taxpayers to reduce their property tax burden is to appeal their property tax assessment each and every year. This applies even when the assessed value does not change or it decreases. This article discusses why annual property tax appeals are beneficial.

Let's start with the basics - it's your money! Even though government budgets are regularly increasing at 10% per year, government has an insatiable appetite for more money. There are always programs which look good on paper. However, there needs to be limits to government spending. By protesting your property taxes, you are doing your part to help put government on a fiscal diet.

For example, in Harris County about 75% of all property tax appeals are successful. Property tax savings are substantial. Average Harris County property tax savings are over $400 for a house and over $5,000 for commercial properties.

With O'Connor & Associates, there is no cost to appeal your property taxes. Homeowners save an average of $400, about 75% are successful and there is no out-of-pocket cost to appeal your property taxes. To file a property tax appeal, prepare for the hearing, and attend the hearing only takes about 2-3 hours. Is saving $400 in property taxes worth 2-3 hours of your time?

In rare circumstances, the assessed value can increase at the hearing. However, this probably occurs at less than one in every 10,000 protests.

You can appeal on both market value and unequal appraisal. An appeal on market value documents your property is assessed at above its fair market value. (Fully 50% of Harris County homes are assessed at more than 100% of their fair market value based on a study conducted by O'Connor & Associates.) An appeal on unequal appraisal is effective when some similar properties have a more favorable level of assessment.

The next reason could be call a "secret". You can obtain the information the appraisal district will use at the hearing 14 days ahead of the hearing. The requirement is not reciprocal; you do not have to give the appraisal district your evidence 14 days before the hearing. The appraisal district's evidence package is sometimes referred to as a "House Bill 201 package" (based on the bill number) or a "41.461 package" (Texas Property Tax Code section which ensures it is available to property owners.)

To obtain the appraisal district's evidence 14 days before the hearing, just include a written request with your property tax protest. There is a nominal cost for the information (typically $0.10 per page or about $0.50 to $2.00 per property).

You are required to file a property tax protest to obtain a copy of the appraisal district's evidence for your property. This is because of House Bill 2188 which passed in 2007.

The appraisal district's evidence package usually contains information which supports a reduction in your property taxes. Even if you were not planning to file a property tax protest, file a property tax protest so you can obtain the appraisal district's evidence package. You can always elect not to attend the hearing if the information is not useful.

Obtaining the appraisal district's "record card" (description of your property) is another excellent reason to file a property tax protest. In almost all cases, at least a portion of the appraisal district's information regarding your property is inaccurate.

In some cases the appraisal district overstates the size of your home or lot. In other cases they understate it. In some cases the appraisal district overstates the quality, condition, level of finish, or site features. In other cases they understate them.

Fixing an error which increases the level of your assessment will reduce your property tax assessment for years. In addition, for errors which overstate the size of your site or building you can reduce your taxes for the current year and four previous years!

Real estate values go through cycles of appreciating and declining. As this article is being written in March 2008, real estate values are declining in more locations than they are increasing. Historically, appraisal districts are quicker to increase appraised values in an appreciating market than to reduce them in a declining market. If real estate values are declining, you will probably need to protest your property taxes to get a fair value.

Property tax reduction is an iterative process. Appraisal district staff and ARB (appraisal review board) members are fond of saying, "each year stands on its own." However, this is not true. Appraisal district staff and ARB members consider the previous year's value when addressing the current year. Annually appealing property taxes generates substantial savings in excess of just appealing every 4 or 5 years.

It IS your money and the government wants MORE of it! To protect your pocketbook, protest your property taxes annually. Your family can make better use of the tax savings than the government. It only takes 2-3 hours of time, hearings are successful and savings average over $400 for homeowners.