The concept of commercial property tax appeals can be daunting for a property owner. Not only does the process require gathering one’s courage to go before the county appraisal district (CAD), but it takes time and energy to compile the evidence needed for a quality argument. In addition, the protest’s outcome often has substantial impacts for commercial property owners’ bottom line, altering what’s owed by thousands of dollars.

At Lane Property Tax Advocates, we believe a clear understanding of the process is the best way to ease property owners’ minds while also helping them build confidence and look out for their best interests. Here, we’ll take a closer look at the steps that make up commercial property tax appeals and what’s required of property owners like you.

What is a Commercial Property Tax Protest and How Does it Work?
The commercial property tax protest is the act of fighting back against overinflated property taxes by presenting a case that illustrates to CAD representatives that one’s assessed value is too high — and ideally persuades them to lower that value to something more reasonable. The process involves a number of steps:

• Filing: The first step in your commercial property tax protest is to alert the proper individuals of your intention to protest. Once you’ve notified your CAD, it will respond with written notice regarding the date, time and place for the next step in the process, your informal hearing.
• The Informal Hearing: Similar to mediation during legal proceedings, the informal hearing involves the commercial property owner (or firm representing them) and a staff appraiser meeting one-on-one to discuss a property’s appraised value and the prospect of lowering that value to something more accurate.
• The Formal Hearing: If no agreement was reached at the last stage, the commercial property tax protest moves on to a formal hearing during which the property owner (or firm representing them) goes before the appraisal review board (ARB) to argue their case. The CAD’s staff appraiser will do the same, and the ARB will make its decision once it’s listened to both sides.
• Arbitration or Litigation: If the second hearing fails to result in an agreement, a commercial property owner has 60 days to begin arbitration or litigation efforts. Arbitration is a more relaxed approach akin to mediation, while litigation is a more formal proceeding that has the potential to move on to trial. The chosen route will depend on specifics surrounding the affected commercial property.

What’s Required of You When Appealing Property Taxes?
The process of appealing property taxes is more than the commercial property owner’s word against that of the CAD. A quality protest is driven by data and hard facts. As such, it takes time and research to formulate a quality case that can shift an argument in one’s favor.

The amount of work required of you, the property owner, will vary depending not only on your property portfolio, but whether you opt to protest alone or with help from a professional firm. Let’s take a look at your potential responsibilities based on your chosen path.

When Appealing Property Taxes on Your Own

• Initial Information Gathering: Your CAD and its ARB need evidence of your current property holdings and the condition that they’re in. We recommend pulling everything from current photos to prior appraisal records and documentation of completed improvements together into one place. If your property has experienced vandalism or needs repairs, be sure to include repair estimates and related documentation.
• Sales & Market Research: Most CADs use mass appraisal systems to place valuations on multiple properties at once. Although this method saves time, it also introduces inconsistencies to the mix. You’ll want to perform in-depth analysis into market values for properties of similar size, use and condition in your region. It’s also helpful to dig into recent sales data to better understand the area’s current conditions.
• Case Preparation: Merely gathering the requisite data is just half the battle. You must then transform hard facts into a compelling argument capable of swaying your audience into lowering your property’s appraised value. We recommend preparing an outline to go by when the time comes to present your case at informal and, if necessary, formal hearings. Preparing written answers to questions you’ll likely be asked, such as timelines related to various repairs, can also help you keep a calm head while presenting quality information.
• CAD Communications: Clear communication is key for any property owner looking to get in front of an ARB to plead their case. Secure your protest appointment(s) early, as CAD schedules fill up quickly during protest season, and respond promptly to any requests for information. If you fail to come to an agreement following formal and informal hearings, be sure to file your litigation or arbitration request within the allowable timeframe. Strict adherence to deadlines is crucial when protesting commercial property taxes.
• Attendance at Formal and Informal Hearings: Hearings provide you the opportunity to present evidence supporting your belief that your commercial property valuation is overinflated and unfair. Although hearings themselves average about 30 minutes, it’s best to block out extra time in case your CAD is running behind or the ARB has more questions to ask than anticipated.
• Attendance at Arbitration and Litigation Proceedings: As we’ve already mentioned, in instances where CADs and commercial property owners fail to see eye to eye after their hearings, the process will move on to arbitration or litigation. Whichever route best suits your circumstances will require multiple in-person meetings and additional preparation to ensure your case is as iron-clad as possible.

When Appealing Property Taxes with a Professional Firm
This approach to the protest process takes much of the work off your plate as the property owner, albeit not all. Here is what is required of you.

• Initial Information Gathering: Your protest team needs a general understanding of your properties before digging in and building a quality case in your favor. Gather tax records, prior appraisal information, repair estimates, photos and other applicable information and send it to your team as early as possible in the season. The more information they have, the better able they are to represent you.
• Quality Communication: Your tax protest team can handle most of the legwork on its own, but sometimes questions arise. If you receive phone calls or emails asking for additional information, respond as quickly as possible to keep the process moving forward unimpeded.

The good news is, when you trust professionals to appeal your commercial property taxes, they’ll pair evidence provided by you with in-depth market research to build a case that places your argument in the best possible light. Your team will then put its expertise to work, attending formal and informal hearings on your behalf and guiding you through arbitration or litigation proceedings if the need arises. There’s little to no additional time or effort required from you once initial information has been submitted.

Lane recommends for property owners to protest their property taxes annually in order to keep property values and their accompanying tax bills in check. If you have questions about the intricacies of property tax appeals or whether such an undertaking makes sense for your properties, feel free to reach out to Lane at any time. Our experts are passionate about our work, and they’re here to unburden your business.