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Not All Assessments Are Correct
Even though appraisal authorities endeavor to value property
accurately and fairly, the simple magnitude of their assignment
insures they can not achieve acceptable accuracy on every
parcel.
Inasmuch as they tend
to concentrate on high profile and high-value properties, using
assumed “typical” income, expense and cap rates, their processes
assure a number of erroneous valuations.
In many instances,
property assessments can still be negotiated, even if they have
been approved by appraisal appeal boards. The Texas Tax Code
makes provisions for substantial error and joint motion appeals.
Substantial Error Appeals
To qualify for a Substantial Error Appeal, the subject property
must be over-assessed by at least 33 percent and there must be
no previous appeal filed during the assessment year in question.
There is a 10 percent
penalty imposed if the Substantial Error Appeal is successful.
This is meant to discourage the use of this appeal over the
regular pre-roll and protest procedure.
The Substantial Error
Appeal can be filed up to January 31 for the preceding year’s
assessment.
Joint Motion Appeal
Owners whose properties have been overassessed but do not
qualify for the Substantial Error Appeal have the option of
filing a Joint Motion to Correct Value. This motion may also be
filed up to January 31 for the preceding year’s assessment.
These appeals are
especially useful to owners who purchase property after the
appeal deadline or who inadvertently miss the deadline.
It is imperative that
all appeal opportunities be pursued in times of rapidly rising
property tax assessments. Failure to act in a timely manner
often results in a value being “assumed” to be correct. This
makes future attempts to correct an erroneous value much more
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