The commercial property tax appeal process can feel like unfamiliar territory — one that’s time-consuming, confusing and full of unknowns. There’s the worry of overpaying, the discomfort of introducing conflict into routine operations and the uncertainty of what the process even involves. At Lane Property Tax Advocates, part of our promise to unburden your business is helping to eliminate that uncertainty.
We believe that understanding what’s ahead is the first step toward a smoother, more successful appeal. While every case is unique, certain elements come into play time and again. Here’s a high-level overview of what you can expect when beginning a commercial property tax appeal and how partnering with the right team can make all the difference.
Commercial property tax payment and protest processes follow specific timelines set by the state government. In Texas, for instance, payments for the prior year’s taxes are due by January 31, while May 15 marks the deadline to submit a protest for the current year’s assessed values. Other dates, such as deadlines for corrections and split payments, enter the mix, too.
Remember, missed property tax deadlines are more than a minor inconvenience. In many instances, they can spell the end of your protest for that year — or costly fees and penalties. Taking an organized approach from the start is the best way to keep your protest on track and deadlines top of mind. When you work with a professional firm such as Lane, they take on that work for you.
Lane Team Tip: A complete tax calendar is available on our Resources page. Click through to download your copy!
It isn’t enough to allege that your assessed property value is too high. The county appraisal district (CAD) will want to see hard evidence that backs up your claim. From images of the property to recent inspection reports or repair estimates, market data and receipts for completed maintenance work, the better able you are to prove your point, the stronger your case will be.
Gathering necessary paperwork can be time-consuming, but it’s a crucial element of your commercial property tax appeal. We recommend trusting the work to a professional firm. Not only do professionals have the time it takes to research your case — and research it well, but they often have access to resources and market data not available to most people.
An informal hearing is typically the first “official” step of the property tax appeal process. At this stage, the property owner (or the team representing them) presents their case — and the appraiser does the same. After information is presented, if the two parties come to an agreement, they sign off and the process is complete. Unfortunately, that isn’t always the case.
In the event that the initial tax hearing does not result in an agreement, the process moves on to a formal hearing before an appraisal review board (ARB). This formal tax hearing works much like a court case, with a verdict being rendered at the end of the meeting. Remember, although additional hearings do mean extra time out of your schedule, if you’ve hired a professional firm to handle your appeal, they can attend for you.
Although the tax hearing process detailed above is often enough to get a property owner’s assessed value lowered, additional steps are sometimes required. In certain instances where the formal hearing fails, the process can move on to arbitration or litigation.
A property owner has 60 days following receipt of the ARB’s final value decision to formally begin the arbitration or litigation process. Their specific path forward will largely depend on the property’s assessed value and value discrepancy. As with the formal and informal hearings, if a property owner has hired a professional firm to appeal for them, that firm will continue to manage arbitration or litigation proceedings.
The property tax protest process is rarely cut and dried. Because so much relies on a commercial property’s location and condition, the area’s current market and a wealth of related factors, too, it can become easy to get swept up in the minutiae. For anyone who doesn’t regularly deal with such work, it can become overwhelming.
At Lane we encourage commercial property owners to hire a professional property tax team that can guide them through every stage of the process. Doing so positions your case for optimal success — and maximum savings — because professional firms deal in this work each day. Not only do they understand the applicable laws and deadlines, but they often have experience with the very tax professionals who will be hearing your case. In addition, they have the time and resources it takes to thoroughly research and argue your case. It’s all about placing your mind at ease while saving you time and money.
The commercial property tax appeal process doesn’t have to be intimidating. With a bit of preparation and a quality team by your side, it’s possible to make this just another annual to-do on your list.
If you have questions about any of the above, or if you’re interested in learning how Lane can help make sure you’re only paying what’s fair on your commercial property taxes, feel free to contact our team at any time. We’re here to help, and we look forward to working with you!
