A wise man once said the difference between tax evasion and tax avoidance is the thickness of a prison wall. While paying commercial property taxes is inevitable, paying more than you should in taxes is unfair. Luckily, there’s a way to avoid overpaying the government. If you’re a property owner who’s tired of overpaying the government, we can help you with the process of lowering your commercial property taxes.
Check the appraisal district description of your property
The first thing to do is visit the appraisal district office for your county and pay for a complete record card for each assessed property in your specific region. This card will have relevant information including the size of the lot, all buildings on the lot, and the available amenities. While at it, be sure to check the appraisal district’s description of your commercial property to establish whether it’s being taxed at fair market value.
There are three varying approaches by which appraisal districts in Texas use to assess property value, the Sales Comparison Approach, the Income Approach, and the Cost Approach. Whichever approach is used by your appraisal district, ensure the information is accurate or at least does not inflate the quality or size of your property.
How you know you have a case to protest your property taxes
As you’ve compared your commercial property with all of the assessed properties in the area, if you see one of these three things, it’s time to think about protesting your property tax rates.
- You’re looking at an exaggerated assessed value on your property with no basis
- There’s a lack of consistency in your assessed property value compared to other comparable properties in your neighborhood
- There’s an erroneous error in your property description which has brought about the overvaluation
File a Protest
The next step is to file a protest, which involves filling out and submitting the tax protest form provided by your specific appraisal district. Alternatively, you can write a letter to the chief appraiser at your specific appraisal district stating your wish to protest your commercial property taxes. After filing your protest, you will receive a letter to notify you of the date and time for your informal hearing.