Introduction to Property Tax Protests
Property taxes can be a significant burden for homeowners, but many people are unaware that these taxes can be negotiated. In Texas, for example, 53% of homeowners do not know that they can protest their home’s property tax evaluation. This lack of knowledge can lead to homeowners paying more in taxes than they need to.
Understanding Property Tax Evaluations
Homeowners are taxed on the assessed market value of their home, which is determined by the local tax office. If the tax office over-appraises a home, the homeowner may end up paying too much in taxes. However, homeowners have the right to protest their property tax evaluation and negotiate a lower value. The appraisal reflects the value of the home on January 1 of each tax year.
The Protest Process
In Harris County, where most Houstonians live, the appraisal is made within the Harris County Appraisal District (HCAD), and the case will be heard by the Appraisal Review Board (ARB). Homeowners have until May 15 to submit a protest, which includes information about their proposed market value of their home. After submitting the protest, homeowners will need to present evidence in an informal meeting, hearing, or by affidavit.
What Homeowners Don’t Know
There are several reasons why homeowners may not be aware that they can protest their property tax evaluation. Their realtor may not have explained the process, or they may have forgotten about it in the midst of buying a home. Homeowners can find out about the protest process by reading mail from the county in detail, but sometimes mail delays or administrative accidents can prevent them from receiving the necessary information.
Hiring a Service to Help with the Protest
Homeowners can hire a service to help them with the protest process. These services, such as Ownwell, work on a contingency fee, which means that they only get paid if they are able to save the homeowner money. Ownwell claims an 86% success rate, and their fee is 25% of the amount saved. Other services, such as Tax Cutter and Gill, Denson & Company, also offer similar services with high success rates.
DIY Protests
Homeowners can also choose to protest their property tax evaluation on their own. This requires diligent research and attention to timelines and details. Homeowners can find information online, but it can be overwhelming and exhausting to sift through. It’s essential to talk to a realtor and gather data on comparable properties nearby to make a strong case.
Why First-Time Homebuyers Have an Advantage
First-time homebuyers have an advantage when it comes to protesting their property tax evaluation, especially if they closed on their house towards the end of the year. They have hard evidence of the market value of their home, which is the price they paid for it. This makes it harder for appraisers to argue that the house is worth more than the purchase price.
Conclusion
Protesting property tax evaluations can be a complex and overwhelming process, but it can also save homeowners a significant amount of money. By understanding the process and seeking help from a service or doing it themselves, homeowners can ensure that they are not paying more in taxes than they need to. Whether they use a service or go the DIY route, the benefits of protesting property tax evaluations far outweigh the effort. Learning about the process now can also make it easier for homeowners to navigate in the future.
