Momentum - Business to Business Online Magazine MOMENTUM April 2018 | Page 15

Taxing Matters
Appraisal notices will soon be mailed. If the property value is
too high:
1. No later than May 15th call to request an informal
meeting with CAD appraiser and present case
2. Unsuccessful? Request formal hearing
with ARB
3. Unhappy with ARB decision? File lawsuit
OR request binding arbitration
Multiple articles have been written and over a hundred classes
have been presented by me about protesting your property
value. An option little discussed due to the complexities is
binding arbitration. This option is gaining popularity due to the
perception that Appraisal Review Boards (ARB) are not impartial
thus it is time to shed some light on this option. First and
foremost, do your homework and don’t go it alone the first time
around.
After an unsuccessful ARB hearing, your choices are to give up
(until next year), file a lawsuit in State District Court (a great
option for those with an attorney in the family) or apply for
binding arbitration. Although this is a costly alternative if you are
not successful, the potential benefits may outweigh the cost. In
binding arbitration, an impartial, independent third party (the
arbitrator) hears and examines the facts from both the property
owner and CAD then makes a decision that is binding on both. It
works like this…
The ARB will provide an order of determination notice after the
formal hearing. If the disputed value does not exceed$5M
(except for residence homesteads for which there is no limit), the
taxes have been paid and you have not yet filed a lawsuit, you
are eligible for this option. A request for arbitration form, along
with a money order or cashiers check made payable to the
Comptroller of Public Accounts (fees range from $450 to $1,550
depending upon the value and property type) must be mailed or
delivered to the CAD within 45 days of receiving the ARB order.
The CAD must certify the application and forward the request,
payment and ARB order to the Comptroller within 10 days.
After receiving the application for arbitration, the Comptroller
will contact you to select an arbitrator from an approved list. The
list will include information such as the counties the arbitrator
participates in and their profession (lawyer, realtor, surveyor,
etc.). You and the appraisal district can agree on up to three
arbitrators. If not, the Comptroller will decide. The selected
arbitrator will contact you to set up the arbitration which could
be in person, by teleconference or via written documentation
(both you and the CAD must agree to submission of
Binding Arbitration
A Viable Option To
Lower Property Value
By: Cheryl E. Johnson,
PCC Galveston Co.
Tax Assessor Collector
documents). A property owner from Friendswood
recently requested that his arbitration hearing be held
at the local library although the CAD wanted a
teleconference. Make some suggestions to the
arbitrator that are agreeable to you and at locations
where you are comfortable. The CAD had the
upperhand with the ARB hearing in its offices so the
location choice should be between you and the
arbitrator.
As in the ARB hearing, you will present your case and
the CAD will present the ARB case. Time constraints in
an arbitration are not as restrictive as in the ARB
hearing so take your time and lay out the entire case.
Prepare. Bring evidence and explain why your value is
more appropriate than the ARB value. You have the
right to hire a property tax consultant, attorney, a real
estate broker or agent, appraiser or CPA to attend the
hearing with you or on your behalf (if on your behalf, a
designation of agent form must be submitted). Having
a professional onboard is a good decision if this is your
first experience with the process.
The arbitrator will take all of the information presented
under advisement and notify you at a later date of the
decision. The value could be lowered but not
sufficiently to reduce the fee. It could also be left at the
ARB value. Winning in arbitration means the value
determined is nearer your opinion than the ARB’s. In
that case, all but $50 (retained by Comptroller to cover
administrative costs) will be refunded to you and the
CAD pays the balance of the arbitration fee.
The decision of the arbitrator is final and binding on
both parties (unless fraud, corruption or willful
misbehavior occurred).
MOMENTUM / April 2018
14