- I bought my home in 2005, and forgot to file a Homestead Exemption for 2006. Is it too late to claim a Homestead Exemption for 2006 and obtain a refund?
- The appraisal district has incorrect information regarding the size of my home. Can I get a refund for prior years?
- I forgot to file a property tax protest by May 31. However, my property is assessed at twice its actual market value. Is there anything I can do?
- I'm 75 years old. I just sold my prior home and purchased a new home. There was a deep discount for school taxes at the old home, but there is no discount for school taxes at the new home. Is the Over-65 Homestead Exemption portable?
- Is it worth filing for a homestead Exemption?
- I appealed my property taxes last year, and my value did not change. However, my value still seems high compared to the value of neighboring properties. Can I protest this year?
- What is unequal appraisal?
- I protested my property taxes including attending the ARB hearing (Appraisal Review Board). (This is sometimes referred to as the formal hearing, Value Adjustment Board or Board of Equalization, depending on the state.) However, I still believe the market value for my property is much less than the assessed value set by the appraisal review board. What are my options?
- I have not heard about binding arbitration. Please explain it.
- Appealing my property taxes seems very complicated. How do I get started?
- I never received my notice of assessed value in the mail. Therefore, I did not protest. However, my assessed value increased sharply. Are there any options to appeal?
- I did not receive the notice for my property tax hearing. The appraisal district says they mailed it and there is nothing they can do. Do I have any recourse?
- I bought a house three years ago. However, the appraisal district still only values my property as a vacant lot even though they have given me a Homestead Exemption. What should I do? Am I legally required to tell them they have not assessed my property?
- My parents died last year and gave me their house. The property taxes are very low because of the Over-65 tax exemption and the low school taxes which occurred 20 years ago. The appraisal district has not changed ownership for the property even though a deed was filed at the courthouse. Should I just pay the lower level of taxes?
- What are the benefits of an Over-65 Homestead Exemption?
- I run a small business. I have business personal property worth about $3,000. However, the appraisal district committed a gross error and estimated the value of my personal property at $100,000. It was such a ridiculous error, that I did not bother to address it. However, now a law firm is suing me for over $20,000 in taxes, penalties and interest. How can I fix this stupid mistake?
Q: I bought my home in 2005, and forgot to file a Homestead Exemption for 2006. Is it too late to claim a Homestead Exemption for 2006 and obtain a refund?
A: You may be able to obtain a retroactive Homestead Exemption depending on the rules in your state. For example, in Texas you can still obtain a Homestead Exemption for 2006 provided the request is filed by January 31, 2008 (1 year after the delinquency data for the taxes).
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Q: The appraisal district has inaccurate information regarding the size of my home. Can I get a refund for prior years?
A: It depends on the amount of the error. You can certainly correct it for the current year and you can likely correct it for prior years depending on the rules in your state. Call you local tax assessor or a property tax expert.
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Q: I forgot to file a property tax protest on time. However, my property is assessed at twice its actual market value. Is there anything I can do?
A: Perhaps. The laws vary by state. There is no provision for late filings in some states. Texas has one of the more progressive options in this area. You can file a substantial error correction appeal (2525d) provided it is filed by the tax delinquency date. This is typically January 31 of the following year.
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Q: I'm 75 years old. I just sold my prior home and purchased a new home. There was a deep discount for school taxes at the old home, but there is no discount for school taxes at the new home. Is the Over-65 Homestead Exemption portable?
A: It depends on rules in your state. For example, Florida has excellent rules regarding portability for all Homestead Exemptions. But while California has a strict cap, it is not portable.
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Q: Is it worth filing for a Homestead Exemption?
A: Yes, it typically reduces your property taxes by about 20%, depending on the state. For example, in Texas and Florida, the Homestead Exemption is substantial. In Nevada, having a Homestead Exemption limits property tax increases to 3% per year. The homestead cap invokes the well-known Prop 13 cap in California, but the Homestead Exemption itself is not material.
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Q: I appealed my property taxes last year, and my value did not change. However, my value still seems high compared to the value of neighboring properties. Can I protest this year?
A: In most states you can protest your property taxes each year regardless of whether the tax assessment changes. Each year you can protest market value and unequal appraisal, if unequal appraisal is lawful in your state.
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Q: What is unequal appraisal?
A: Unequal appraisal is when you are assessed at a higher level than similar properties. You can obtain information regarding similar properties from the appraisal district web site for most counties in Texas. Most states do not allow appeals on unequal appraisal.
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Q: I protested my property taxes including attending the ARB hearing (Appraisal Review Board). However, I still believe the market value for my property is much less than the assessed value set by the appraisal review board. What are my options?
A: You can file a judicial appeal, appeal to the state board of equalization or a request for binding arbitration, depending on the state. For most homes, a judicial appeal is not financially feasible.
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Q: I have not heard about binding arbitration. Please explain it.
A: Binding arbitration is a new option for Texas taxpayers. The property owner files a request for binding arbitration within 45 days after receiving official notice of the appraisal review board's decision. The property owner completes a form, remits payment of a $500 deposit and lists a requested value. The appraisal district forwards the request for binding arbitration to the Comptroller. The Texas Comptroller facilitates selection of an arbitrator, who holds a binding arbitration hearing. There is an exchange of evidence prior to the hearing. Both the property owner and the appraisal district have an option to present evidence at the hearing. The arbitrator will make a final decision regarding the assessed value for the year.
If the value is less than the value set by the appraisal review board, the assessed value for property taxes will be reduced. The assessed value for property taxes will not be increased as a result of the binding arbitration hearing.
The Comptroller retains $50 for facilitating the binding arbitration process. If the arbitrator selects a number closer to the property owner's value, the appraisal district pays for the cost of the binding arbitration and the property owner receives a refund of $450 from the deposit. If the value selected by the arbitrator is closer to the appraisal district's value, the property owner does not receive a refund of any portion of the deposit. If the value is less than the value set by the appraisal review board, the value is reduced.
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Q: Appealing my property taxes seems very complicated. How do I get started?
A: File a property tax appeal prior to the deadline. You can obtain a copy of the form from the appraisal district web site in most cases. At the same time the property tax protest is filed, start seeking information to support a reduction. For houses, you will typically provide information regarding your property, comparable sales and information on unequal appraisal. Check the information regarding your property for accuracy. If it is not accurate, this is a great way to reduce your property taxes. Review the comparable sales data provided by the appraisal district. In many cases, some of the comparable sales will support a value lower than your assessed value. Document any deferred maintenance at your property. Also document any offensive properties that are proximate to your property.
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Q: I never received my notice of assessed value in the mail. Therefore, I did not protest. However, my assessed value increased sharply. Are there any options to appeal?
A: Maybe. Laws vary dramatically by state. Check with a local expert. The answer you receive from the appraisal district may not be reliable.
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Q: I did not receive the notice for my property tax hearing. The appraisal district says they mailed it and there is nothing they can do. Do I have any recourse?
A: Probably. Most states allow an appeal on this basis. However, it is hard to prove a negative! How can you prove you did not receive a copy of the hearing notice?
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Q: I bought a house three years ago. However, the appraisal district still only values my property as a vacant lot even though they have given me a Homestead Exemption. What should I do? Am I legally required to tell them they have not assessed my property?
A: In most states, you are not legally required to tell them they have not assessed your property. However, they can tax you for omitted property for a period of time which varies from state to state. If you do not correct the error, you need to be prepared to pay the current year's taxes and taxes for prior years.
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Q: My parents died last year and gave me their house. The property taxes are very low because of the Over-65 tax exemption and the low school taxes which occurred 20 years ago. The appraisal district has not changed ownership for the property even though a deed was filed at the courthouse. Should I just pay the lower level of taxes?
A: Most state laws provide full repayment of property taxes under paid due to an erroneously provided exemption. You may be asked to repay the taxes, and possibly penalties and interest in the future.
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Q: What are the benefits of an Over-65 Homestead Exemption?
A: It varies from state to state. In many cases, the amount of exemption increases and the taxes are frozen at the level when you become 65.
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Q: I run a small business. I have business personal property worth about $3,000. However, the appraisal district committed a gross error and estimated the value of my personal property at $100,000. It was such a ridiculous error, that I did not bother to address it. However, now a law firm is suing me for over $20,000 in taxes, penalties and interest. How can I fix this stupid mistake?
A: It is probably not possible to remedy the error at this point unless the appraisal district assessed you for property that does not exist. For example, if they assessed you for $90,000 of inventory and you do not have any inventory, you can probably get this part of the valuation stricken using a correction protest. However, even the ability to do this varies from state to state. Property owners are well advised to monitor property tax assessments on an annual basis. It is very difficult to correct errors for prior years.
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