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With the June 2 protest deadline approaching, Texas taxpayers
must understand that appeals cannot legally challenge the value
of land and improvements separately. Appeals based on uniform
and equal treatment must focus on the entire property value.
Supreme Court
to Rule
A lawsuit filed by a Williamson County taxpayer
challenged only the land portion of his property assessment. The
Williamson County Appraisal District (WCAD) responded by filing
a special exception, alleging the tax code does not provide for
unequal appraisals based solely on the land of an improved
property.
The trial court granted WCAD’s special exception
and ordered the taxpayer to replead the case based on an unequal
appraisal of the entire property. When the taxpayer refused to
replead, the trial court dismissed the case.
The taxpayer then took his argument to the Third
Court of Appeals in Austin. He claimed that since the
Legislature amended the tax code requiring value notices to
include separate listings of the land and its improvements, then
appeals could be based only on the land component.
The Court of Appeals rejected this argument as
reflected in its opinion:
Although the land and improvement values may present
contestable issues, we hold that the total improved property
value--which includes both the land and improvement
components--is the only appraised value that the taxpayer may
appeal.
The petitioner then asked for a review by the
Texas Supreme Court.
This link gives the most up-to-date information on the case.
POER
Recommends
This case establishes a firm basis for appeals
made under the equal and uniform provisions of the tax code.
However, by demonstrating that one of the components of the
overall value (land or improvements) is the contributor to an
inequitable total value, a solution is offered by the courts. It
is clear from this ruling that the central argument must revolve
around the combined value of the property.
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