Texas property owners still have a last appeal path after ARB rulings

Texas property owners missed the May 15 property tax protest deadline, but some still have one more chance to fight their assessments. O'Connor outlines three post-administrative appeal options that can follow an appraisal review board ruling, including binding arbitration, SOAH hearings and judicial appeals.

Why it matters: - Texas property tax fights do not always end at the appraisal review board. - High-value properties can still seek a post-administrative appeal after an ARB decision, potentially lowering taxable value and taxes further. - The option matters most for expensive homes, businesses, ranches and farms, where added savings can justify litigation costs.

What happened: - The May 15 deadline for standard Texas property tax appeals has passed. - Property owners who filed informal protests or formal ARB protests are now mostly at the end of the normal appeal process. - O'Connor says certain property owners still have one final appeal path through post-administrative litigation.

The details: - Standard property tax protests in Texas must be filed by May 15 or within 30 days of a notice of appraised value, whichever is later. - Post-administrative appeals begin after the ARB issues a written determination. - Property owners have 60 days to file a post-administrative appeal if the ARB denies a reduction or the reduction is not enough. - These appeals are lawsuits, so an attorney is required. - Evidence must meet a higher standard than in informal or ARB protests. - Expert witnesses are often needed to support the case. - O'Connor breaks post-administrative appeals into three categories. - Binding arbitration is the most common option and is generally available for single-family residential properties worth under $5 million, with the cap removed for homesteads. - Binding arbitration uses an independent arbiter, usually an attorney or property tax expert, to decide between the taxpayer and the appraisal district. - The taxpayer pays a deposit tied to the property value. - If the taxpayer wins, the deposit is refunded and the appraisal district pays the fee. - If the taxpayer loses, the taxpayer forfeits the deposit. - Settlements are common before a binding arbitration hearing, especially when the taxpayer has strong evidence. - Binding arbitration ends the appeal process even if the case settles. - SOAH cases are the rarest appeal type in Texas and are reserved for single-family homes worth over $1 million. - SOAH has existed for about a decade, and in 2024 only 77 cases were heard statewide. - SOAH hearings are more formal than binding arbitration and are led by a judge. - Judicial appeals are full lawsuits in district court. - Judicial appeals usually require independent appraisers, expert witnesses and a larger legal team. - Judicial appeals are mainly used by businesses and by luxury homes, ranches or other high-value agricultural properties. - Judicial appeals are often aimed at cutting taxable value by an additional 10%. - In 2024, 93.72% of judicial appeals ended in a taxpayer-favorable settlement.

Between the lines: - The appeal system is built to reserve the most expensive and complex litigation for properties where the potential savings are large enough to make the cost worthwhile. - Rising home values and taxes across Texas have made binding arbitration more attractive for homeowners than it once was. - The very high settlement rate in judicial appeals suggests leverage often shifts toward the taxpayer once a case reaches district court.

What's next: - Property owners who received an ARB written determination still have a 60-day window to assess whether a post-administrative appeal is worth the cost. - Taxpayers considering these cases will need to weigh possible savings against attorney fees, evidence costs and expert support. - O'Connor is promoting its Property Tax Protection Program for owners seeking help with appeals.