Additional Appeals

Hotel Tax Consultants, LLC strives to settle appeals either informally or at the ARB so that our clients receive any tax savings as soon as possible. However, there are times when further appeals are justified and necessary in order to receive a fair value. Additional property tax appeal options are similar in many states. The following is a summary of the options available for Texas hotels.

After the appraisal review board issues its order of determination, property owners have three appeal options:

1) within 30 days after receiving the order the property owner can file a SOAH appeal, 2) within 45 days after receiving the order the property owner can file a request for binding arbitration, and; 3) within 60 days after receiving the order the property owner can file a request for litigation.

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The Texas property tax code also has other remedies available to property owners whose situations meet certain criteria. Section 25.25 (c) allows property owners to appeal any clerical errors found on their account. And Section 25.25 (d) allows property owners to file an appeal after the normal appeal deadline if their property is over-assessed by more than 1/3^rd.

SOAH APPEAL

A SOAH, or state office of administrative hearing, appeal is available if the appraised value on the ARB order of determination is over $1 million. The appeal is required to be filed within 30 days of receiving the order. A $1,500 deposit must also be filed with the chief appraiser within 90 days. If an agreement is reached before the hearing, the $1,500 will be refunded. The $1,500 will also be refunded if the judge sets the value closer to the property owner’s value than to the appraisal district’s value. The property owner will not be required to pay any other costs in this scenario. However, if the judge sets the value closer to the appraisal district’s value, the cost to the property owner is $1,500 plus the judge’s billed time at $100 per hour plus any other travel and/or miscellaneous expenses.

Hotel Tax Consultants, LLC does not typically recommend a SOAH appeal as arbitration and litigation are usually more cost-effective options.

BINDING ARBITRATION

Binding arbitration is another option available to property owners if they believe they have not received a fair value from the appraisal review board. A request for binding arbitration must be filed within 45 days after receiving the ARB’s order of determination. Arbitration deposits vary based on the property value indicated on the ARB order:

Appraised Value	Deposit	Arbitrator Fee
≤ $1M	$500	$450
> $1M and ≤ $2M	$800	$750
> $2M and ≤ $3M	$1,050	$1,000
> $3M and ≤ $5M	$1,550	$1,500

If the arbitrator sets the value closer to the property owner’s value than the ARB’s value, the property owner will receive a refund of their deposit less $50 in administrative costs, which the Texas Comptroller keeps. On the other hand, if the arbitrator sets the value closer to the ARB’s value, the property owner will not receive a refunded deposit. The arbitrator’s fee will be paid from the property owner’s deposit.

If we believe you did not receive a reasonable value from the appraisal review board, we will contact you and let you know whether we recommend pursuing binding arbitration. If you decide to pursue arbitration, all we will need from you is the required deposit. No attorneys are involved. We will file all paperwork, and prepare and present the case to the arbitrator. There is usually no need for you to attend the arbitration. Hotel Tax Consultants, LLC does not charge any additional arbitration-related fees.

LITIGATION

Unlike arbitration, which limits filings to properties valued less than or equal to $5 million, in property tax litigation there are no value restrictions.

If we believe you did not receive a reasonable value from the appraisal review board, we will contact you and let you know whether we recommend pursuing litigation. If you decide to pursue litigation, we will connect you with an attorney. Hotel Tax Consultants, LLC will prepare the case. And the attorney will file all the appropriate paperwork. Hotel Tax Consultants, LLC and the attorney will present your case. There is usually no need for you to attend litigation negotiations. Hotel Tax Consultants, LLC does not charge any additional litigation-related fees. We charge on a net savings basis. So any legal fees you pay will be deducted from our fee. Most lawsuits are settled in informal negotiations without ever going to court.

§ 25.25 (c)

Section 25.25 (c) of the Texas property tax code allows property owners to file an appeal for any clerical errors made by the appraisal district that affect the property’s value. An example of this type of error would be if the district accidentally typed a 9 instead of a 6 when entering the year built, room count, or building area. Mistakes in judgment or reasoning, on the other hand, cannot be corrected in a 25.25 (c) appeal. A § 25.25 (c) hearing can correct clerical errors for the past 5 years.

§ 25.25 (d)

Section 25.25 (d) of the Texas property tax code allows property owners to file an appeal if they believe their property is over-assessed by more than 1/3^rd. The deadline to file an appeal is January 31st of the following year. The property could not have already been the subject of an appeal during the regular property tax season. A 25.25 (d) hearing can only address the property value for 1 tax year.