SterlingResidential.com | Buying & Selling Residential Properties in Texas | Houses for Rent Houston Area | Humble Atascocita Kingwood & Spring Texas Realtors | Sterling Residential®, Realtors® | Real Estate Broker: Home owners lining up for property tax protests in Harris County

Home price appreciation in Harris County for the past decade has kept high property taxes a Hot Button topic for Texas homeowners. Texas consistently ranks among the top ten states for the highest property taxes in the nation, and many county home owners experienced a 50% increase in property taxes between 2000 and 2004. It’s not uncommon to stand in line at your local grocery store and overhear your neighbors’ conversation about the hurtful pinch of skyrocketing HCAD appraisal values. They’re not just talking in the grocery store; record numbers of property owners are making their voices heard in HCAD’s office. Paul Bettencourt, Harris County’s tax collector, reports that Harris County processed 350,000 property tax protests last year. As the deadline for filing your 2008 tax protest approaches, here are some tips to smooth your way through the tax protest process. Complete instructions are available at the HCAD website.

HCAD Property Tax Protest Quick Link Guide

• HCAD
• HCAD iFile and iSettle
• Harris County Tax Office
• HCAD Protest Guideline
• Comptroller Info
• Texas Tax Code
• Property Tax Forms

Tax protests are conducted throughout the year through informal and formal hearings at the District’s main office located at 13013 Northwest Freeway in Houston. Additionally, HCAD’s iFile and iSettle Systems allow individual homeowners to file protests electronically, view sales comparable evidence that HCAD will use at the protest hearing and, beginning in 2008, actually receive an online settlement offer from HCAD for a tax protest on eligible properties. Homeowners using the iSettle system have the option to accept HCAD’s online offer, or continue their protest with an in-person hearing before the Appraisal Review Board (ARB).

Generally, the protest process is designed to give taxpayers a voice about their property value, and knowing how to file a protest is an important first step. But in order to succeed at lowering your taxes, you must tell the HCAD appraiser or ARB panel why your taxes should be lowered. Your reasoned input and property value evidence can balance the computer-generated value assigned by HCAD, since it’s likely that a HCAD appraiser has not personally viewed your property.

Many experts suggest tax protests be done every year, ensuring a property’s taxable value is consistently assessed accurately. Fee-based tax protest services are widely available to those homeowners who feel overwhelmed by the system and want to hire an agent to handle the protest on their behalf. While successful protest results cannot be guaranteed, tax protest agents are familiar with the procedures and boast successful track records.

What are some of the issues you can protest about your property?

1. Your property may be appraised higher than the current market value of houses being sold in your area. Home buying and selling trends fluctuate, as do housing prices. Do houses near you take longer to sell than those in other area neighborhoods? Examine market comparables in your neighborhood of similar size, age, and construction that have sold in the past year for lower values to determine if you have cause to protest.

2. Market factors affecting your particular neighborhood, or your particular part of the neighborhood could lower your taxable value Present evidence of any unique variables that could affect HCAD’s valuation of your property. Proximity to commercial land, high traffic thoroughfares and airports, as well as economic market declines, are just a few of the variables that can affect your neighborhood value.

3. Your property may be appraised unequally with surrounding houses in your neighborhood or area. Obtain a copy of the comparable evidence HCAD used to determine your market value to see what homes and data your property is being compared to, and go look at those houses. Show evidence of any discrepancies in price per square foot, lot size, quality of construction, or home amenities.

4. Your square footage could actually be different than what is recorded by HCAD. Use an existing appraisal or survey to ensure your taxable square footage is correct, both for land and the improvements. Be sure square footage is categorized correctly. For example, an enclosed outdoor porch is not taxed on the same basis as your air-conditioned living room.

5. Needed major repairs can affect your market value to a willing buyer and, thus, may lower your taxable market value. If your home has a cracked foundation, termite damage, serious mold issues, damaged/old roof, or other serious repair issues, use photos and estimates to argue those value reductions. Historically, however, HCAD is less inclined to reduce valuation for cracked driveways, landscaping issues, deteriorating fencing, or other deferred maintenance items.

6. Undesirable traits of your home can affect your market value to a willing buyer. Point out and show evidence of those factors which will limit potential buyer appeal, and thus limit your market value. For example, major roadway noise, airplane takeoff or landing patterns, odd-shaped lot, floor plan irregularities, or home location within the neighborhood can affect values.

7. In addition to hard facts, like square footage, age, rooms, and amenities, HCAD grades properties on physical condition, which can raise or lower your taxes. Properties are valued by physical condition (i.e., Excellent, Very Good, Good, Average, Fair, Poor, Unsound). HCAD also judges the quality of workmanship and materials in your property, and assigns a building grade adjustment on a scale of AA (highest) to E (lowest). The benchmark condition is AAverage@ or AC. Is your property accurately graded to similar neighboring properties? A higher grade can increase your value per square foot in comparison to neighboring properties.

8. HCAD reevaluates property values and condition when building permits are issued for remodeling. However, remodeling doesn’t necessarily raise the immediate market value of a home or raise the existing quality of workmanship and materials. If your taxable value has increased due to remodeling, evaluate those changes assessed by HCAD. Evidence may show that updated features, changes, or colors may have been desired or necessary just to keep pace with the current market value, and do not immediately translate into dollar-for-dollar increased market value upon resale.

Property Tax Protest Tips for Success

• Before the hearing date, request a copy of the sales comparable evidence HCAD used to determine your market value — it’s available online after filing your protest or through in-person requests from HCAD’s offices.
• Take 5 copies of your documents and evidence with you to the tax protest hearing — 1 copy for yourself, 1 copy for the HCAD appraiser, and 3 copies for the ARB panel.
• Rehearse your case and know your evidence, presenting your case clearly and to the point. You have a limited time period to help the HCAD representative see the property value from your point of view.
• HCAD hearings are very structured, organized, and formal to allow time for all scheduled hearings to take place. Review and be familiar with the HCAD hearing procedural rules and follow their instructions.
• Take notes during the hearing. Bring a calculator and notepad so you can review any new numbers or evidence presented by HCAD during the hearing. You’ll have a chance to offer a rebuttal and ask questions.
• The protest process can be understandably frustrating for home owners, but it’s important to argue your case calmly and professionally — please be respectful of HCAD representatives working to hear your case.