When taxpayers hear this question, the initial reaction is "well of course they should have to follow the law!" Consider the following example. You are driving 80 mph on a highway with a 55 mph speed limit. The police officer pulls you over and reminds you the speed limit is 55 mph. However, he does not give you a ticket since it is not a crime to ignore the speed limit. This strange example is analogous to the laws applicable to Texas appraisal districts.

Texas laws govern the rules for appraisal districts to set assessed values and for appraisal review boards to conduct property tax protests. In general, these rules are taxpayer friendly. The laws regarding property tax hearings are the only portion of the Texas property tax code which is friendly to the taxpayer. The appraisal district is allowed to estimate the initial assessed value for each property each year. It is incumbent upon the property owner to protest timely if they do not agree with a value. (If they do not protest on time, they lose most of their rights for the year.) The property owner must show up on time for the property tax protest hearing. If they are late, their appeal can be dismissed. If the appraisal district is running late, they will ask you to wait. However, from a practical perspective, there is no penalty for appraisal review boards or appraisal districts which disregard these rules. In some cases, it is clear the appraisal district is knowingly ignoring the law. In other cases, the violations appear to result from appraisal review board members not being informed regarding the law. The consequences for not complying with the Texas property tax laws are not reciprocal. If a property owner does not timely render, file a protest or show up for the property tax protest hearing, they lose many rights. However, if an appraisal district or appraisal review board does not timely comply with the law, there is no consequence.

For example, a Texas homeowner files a property tax protests based upon unequal appraisal. There are a number of options for appealing property taxes in Texas including protests for market value and unequal appraisal. An appeal regarding market value contends that the assessed value for the property exceeds its market value. An appeal regarding unequal appraisal contends that the subject property is unfairly assessed in relation to similar properties. He prepares information showing that his home is over assessed in comparison to similar homes in his neighborhood. At the informal hearing, the staff appraiser says he can not consider unequal appraisal. The appraisal review board hearing is sometimes referred to as the formal hearing. At the appraisal review board (ARB) hearing, the three-member ARB panel acts puzzled that the taxpayer is presenting information on unequal appraisal. They tell him, we are here to consider market value. We don't consider unequal appraisal.

The above example is repeated hundreds or thousands of times every year in virtually every county in the state. Unfortunately, there is no practical remedy for the homeowner unless the discrepancy merits hiring an attorney to file a lawsuit and an expert witness to provide testimony.

The attorneys for the Harris County Appraisal District and the Harris County Appraisal Review Board contend this is what is intended. Property owners should have no remedy regarding systematic problems with the appraisal review board hearing process. Their contention is you have the right to file a judicial appeal if you are not satisfied with the results of the appraisal review board hearing. Incredibly, attorneys for the Harris County Appraisal District contend that district court judges do not have the authority to compel them to follow Texas law.

It is outrageous that a governmental entity designed to serve the public adopts this self-serving position. Yes, the homeowner in this example can file a judicial appeal. However, it is not financially feasible for 95% of homeowners to pursue a judicial appeal. If there is a systematic problem with the appraisal review board hearing process, they are out of luck! In addition, the burden of proof is reversed when the appeal proceeds to state district court.

The appraisal district has the burden of proof at the appraisal review board hearing. The taxpayer has the burden of proof in a district court appeal.

Comments on the following questions are encouraged:

1. Do you find it incredible that attorneys for Harris County appraisal District are taking the position that the Texas district courts and appeals courts do not have the authority to require them to obey the law?
   
2. Should appraisal districts and appraisal review boards be required to follow the law?
   
3. What remedy is reasonable and appropriate to sanction appraisal districts and appraisal review boards which do not comply with Texas law?
   

 

Add Comment(Comments will not appear until approved.)

Links & Resources