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Options for continuing an appeal of your Galveston Central Appraisal District assessed value after the appraisal review board (ARB) hearing
Galveston Central Appraisal District assessed values can be appealed after the ARB hearing. For properties with an assessed value of $1,000,000 or less after the ARB hearing, you can choose binding arbitration to appeal market value or a judicial appeal (lawsuit in district court). For properties with a Galveston Central Appraisal District value in excess of $1,000,000, you can file a judicial appeal.
Binding arbitration and judicial appeals share several characteristics:
- You must timely file a property tax protest regarding the Galveston Central Appraisal District value
- You cannot agree to a value at the informal hearing
- You must attend the appraisal review board hearing in person or by affidavit
- You must act by requesting binding arbitration or filing a lawsuit within 45 days of the date of you receive the formal notice of the ARB hearing results.
Steps 1 through 3 are often referred to as "exhausting your administrative remedies." Multiple court decisions affirm you must file a property tax protest and attend the ARB hearing to be entitled to file a judicial appeal. Courts want property owners to attempt to resolve disputes through the administrative appeal process. This is good public policy since it reduces the burden on the judicial system.
Advantages of using binding arbitration to appeal your Galveston Central Appraisal District value after the ARB hearing include lower cost, speedier decisions, an independent arbitrator who understands valuation and the opportunity to directly address the valuation problem outside of Galveston Central Appraisal District offices. Costs are lower because you do not need an attorney or an expert witness (likely to be necessary to seriously pursue a judicial appeal against Galveston Central Appraisal District). The Texas Comptroller expects binding arbitration cases to be resolved in 6 months while judicial appeals usually take 8 to 18 months. The arbitrator will be licensed appraisers or real estate agents/brokers and should understand real estate valuation.
Disadvantages of binding arbitration include
- It currently (September 2006) only applies to market value for real estate. (i.e. you can't appeal for unequal appraisal for real estate). For disputes involving unequal appraisal for accounts under $1,000,000 consider engaging a firm on a contingent fee basis. This provides you with an upside and no downside.
- There is a $500 deposit required when you request binding arbitration, although $450 is returned if the property owner prevails. In this case, Galveston Central Appraisal District would pay the $450 arbitration fee. When setting the requested value on the arbitration form, consider not putting the lowest possible value you can request. Include a value for which you can provide impressive documentation.
- Binding arbitration can't be used for real estate with a Galveston Central Appraisal District value over $1,000,000 for unequal appraisal, business personal property and mineral interests.
Judicial appeals against Galveston Central Appraisal District are more expensive but offer more options. You can appeal market value and unequal appraisal for property with any value. Judicial appeals can be used for real estate, mineral interests and business personal property. They can also be used to appeal Galveston Central Appraisal District when "a property owner has been denied a hearing to which the property owner is entitled." While judicial appeals are more expensive, they offer more options and flexibility.
Property owners should seriously consider appealing the Galveston Central Appraisal District assessed value after the ARB hearing. Most judicial appeals are successful.
Preparing for Binding Arbitration
Request for Binding Arbitration
More Information on Judicial Appeals
Hire O'Connor & Associates to appeal high property taxes. You pay NOTHING unless we save you money!
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