There’s Still Time to Save on Your Property Taxes This Year

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There’s no worse feeling than when you forget to do something – especially when it can save you money. Luckily, there’s still time to save on your commercial real estate property taxes this year, even if you missed out on filing a property tax appeal during the normal appeal cycle.

Thanks to a special provision in the Texas Property Tax Code, you can still protest your commercial property’s appraised value. This means that even if you missed the defined window to file a real estate tax appeal last year, you may not necessarily be obligated to fish out the amount stated on your property tax bill this year.

But how do you complete your late correction appeal? Below, we’ve outlined your step-by-step real estate tax guide.

  1. First, a commercial property owner can only file a late correction property tax appeal if his/her property’s value was not contested during the normal appeal cycle, which usually runs from the first of May through the middle of July of the current year.
  1. File your appeal on or before January 31, 2017. There is no fee for filing a late appeal.
  1. Owners must provide and/or present all necessary supporting evidence to the appraiser or ARB to justify the late adjustment. Depending on if it’s land, an owner-occupied building or an income-producing property, there are different questions you must ask and answer to support the correction you’re seeking.
  1. To qualify for a successful late correction appeal, the property’s assessed value as a result of the appeal must be reduced by at least 25 percent. For example, if a property’s value was originally assessed at $1,000,000, the appraisal district or Appraisal Review Board (ARB) must reduce the value to $750,000 or less.
  1. Additionally, owners must pay property taxes owed on the full amount or the portion of the property’s taxable value not under dispute prior to February 1, 2017.
  1. If and only if your appeal is successful, municipalities will charge a late correction fee equal to 10 percent of the adjusted taxes owed. For example, if taxes are adjusted from $35,000 to $25,000, the municipality will charge a $2,500 administration fee for correcting the appealed value on the tax roll.

Another bonus: there’s no fee or penalty for simply filing the late appeal. If – and only if – the appeal is successful will the appraisal district charge the 10% fee. So, there’s still time to fight property tax this year – with minimal risk!

If you have any other real estate tax questions, feel free to call us, and our property tax consultants can help guide you in the right direction to save you money this year. You’ve missed out once; don’t miss out twice this year!

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