Commercial property taxes can be confusing for any Texas property owner. At the Hegwood Group, we are a team of property tax consultants dedicated to answering the hard questions about state property tax.

If you have a property tax question, we’re here to help! Check out some of the most common questions we hear related to Texas property taxes.

How are Commercial Property Values Decided?

Your local Appraisal District examines properties according to their physical characteristics,

Commercial property taxes can be confusing for any Texas property owner. At the Hegwood Group, we are a team of property tax consultants dedicated to answering the hard questions about state property tax.

If you have a property tax question, we’re here to help! Check out some of the most common questions we hear related to Texas property taxes.

How are Commercial Property Values Decided?

Your local Appraisal District examines properties according to their physical characteristics, like size, construction type, location, and use. The district may look at a property yearly or at least once every three years.

Generally, the appraised value derives from a property’s fair market value. This figure represents what a property would sell for on the open market when the buyers or sellers are not under duress. Appraisers calculate this number by looking at sales data for similar properties in the area. Real estate professionals call this looking at comparables or “comps.”

Commercial property tax values do not always fit neatly into analyses of comparable transactions. For example, income generated by productive lands, like agricultural land, guides valuation instead of market value for the land. In other situations, a commercial property may not have anything comparable to it in the area.

Why Did My Commercial Property Tax Go Up?Co

The law obligates the Appraisal District to make decisions based on documented factors, such as:

How Do I Protest Property Tax in Texas?

Although commercial property tax is supposed to be based on objective factors, tax appraisals can be wrong due to errors or misinterpreting facts. You should receive your Notice of Appraised Value in late April or May.

Upon receiving a new value determination that you disagree with, contact your Appraisal District as soon as possible. The district grants a short window of time, mostly from May through July, to process protests before the new valuation becomes final.

Your first step is to discuss the issue with the district. The district may acknowledge a mistake and fix it.

If that fails, you need to file a Notice of Protest with the Appraisal Review Board (ARB). You may find it useful to speak with a property tax consultant in Dallas before making contact with the district.

How Does the ARB Make Decisions?

The people serving on the board must ensure that tax values are based on factual information and applied equally across all properties. They are private citizens who live in the district and are appointed by the district’s board of directors.

During your tax protest hearing, you or your representative present the reasons you found the valuation in error. Your presentation should be concise. The board may limit the time for each hearing. Be sure to focus on documented facts. You may show photographic evidence if it helps your case.

The district’s chief appraiser also presents the reasons for arriving at the valuation. The district is responsible for proving its valuation’s validity with the preponderance of the facts.

After considering both sides, the ARB issues a ruling. If the district appraiser has not met the burden of proof, the board is supposed to rule in the property owner’s favor. Regardless of the outcome, an ARB’s ruling applies only for one year.

Can I Appeal an ARB Ruling?

If the hearing does not go your way, you may continue your protest either in district court or through binding arbitration. You should weigh the expense of this continued action against the strength of the facts concerning your property.

Learn More About Property Tax in Texas With the Hegwood Group

The state operates under a complex set of rules for determining tax valuations. As a commercial property owner, ensuring a fair assessment is vital for your profits and protecting your commercial property investment.

At the Hegwood Group, a property tax consultant in Dallas,  we examine your current valuation and look for opportunities to challenge the decision of the Appraisal District. Contact us today to learn more about how we can help you save money on your annual property taxes.

Commercial Property Tax Misconceptions

Commercial property tax is a collective financial concern for business owners and investors. The expense is not stable because an appraisal district can alter your tax bill from year to year. 

This does not mean that your new taxable value is necessarily accurate. You have the right to protest the value assigned to your commercial property, but it’s important to avoid preconceived misconceptions about the process.

Taxing Entities Direct

Commercial Property Tax Misconceptions

Commercial property tax is a collective financial concern for business owners and investors. The expense is not stable because an appraisal district can alter your tax bill from year to year. 

This does not mean that your new taxable value is necessarily accurate. You have the right to protest the value assigned to your commercial property, but it’s important to avoid preconceived misconceptions about the process.

Taxing Entities Direct Appraisal Districts to Raise Assessed Values

A big jump in your property tax bill, especially when not expected, makes it easy to think that your local governments have ordered the district to bump up everyone’s taxes. Although governments probably wish they could do this, they can do no such thing.

Property Tax Code 23.01 states that tax appraisers establish the market values of properties as of January 1st each year. The Uniform Standards of Professional Appraisal Practice outline the proper procedures for the process. The comptroller’s office is supposed to check a district’s methods for compliance at regular intervals.

Appraisal Districts Make Decisions Based on All Sales Data

Texas is a non-sales disclosure state, which means that districts do not have access to all information regarding property sales. No mechanism automatically feeds this data to them.

When calculating a commercial property tax, an appraiser relies on local brokers, realtors, and individuals who bought or sold the property to respond to an appraiser’s queries. As a result, most appraisals are not based on a complete picture of current sales activity. When possible, property tax consultants in Dallas provide an appraiser with additional data that could impact the property tax calculation.

Tax Owed is Subject of Property Tax Protest

Although the dollar figure on the tax bill prompts you to protest, you are actually protesting the appraised value of the property. When you or your representative approach the appraisal district, you raise questions about the current appraisal’s accuracy. The value is an important factor in the calculation of what you owe. The tax bill itself can only be altered if an adjustment of the value yields a different figure.

Payment of Tax Bills Delayed Until Protest Resolved

A tax bill cannot be paid late without consequences. If it looks like your protest will still be pending when the bill comes due, you need to pay it. Becoming delinquent on the tax could forfeit your right to continue the protest.

Property Value is the Sole Deciding Factor in Tax Assessments

Your tax bill derives from the market value minus exemptions multiplied by the tax rate. The tax rate could be just as influential on the tax owed as the market value.

Property tax consultants at the Hegwood Group can investigate your questions about your tax bill and manage the protest of your commercial property tax. Contact us today.

Taxes are one of life’s unavoidable necessities, and ensuring that you pay your federal, state, and property taxes on time is all part of being a responsible member of society. However, what if life got in the way and you let the property tax deadline slip by? Are you in trouble? Is there a way […]

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Taxes are one of life’s unavoidable necessities, and ensuring that you pay your federal, state, and property taxes on time is all part of being a responsible member of society. However, what if life got in the way and you let the property tax deadline slip by? Are you in trouble? Is there a way […]

The post What to Do if You’ve Missed the Property Tax Deadline? appeared first on The Hegwood Group.

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Everyone wants to save money on taxes, and one of the best ways to do so as a commercial real estate owner is to take advantage of important deductions and other tax strategies that will make next year’s tax season less stressful. Whether you are a new commercial real estate owner or an experienced taxpayer […]

The post Real Estate Tax Strategies to Take Advantage of in 2022 appeared first on The Hegwood Group.

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The post IRS Safe Harbors to Remember This Tax Season appeared first on The Hegwood Group.

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Commercial property taxes are something that every business owner wants to save money on whenever possible. It’s the biggest reason we see so many property tax protests and thoroughly review early assessments for our clients. While property tax protests are a great way to save money on commercial property taxes, there are many tax exemptions […]

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Even though property taxes are our livelihood at The Hegwood Group, we know that no one loves to pay them. While the ever-increasing annual property tax in Texas may seem a burden to most people every year, the truth is that property taxes greatly benefit the social and economic aspects of communities.  As we move […]

The post 6 Reasons to Be Thankful for Property Taxes appeared first on The Hegwood Group.

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Commercial property owners have enough responsibilities on their hands. Worrying about overpaying on property taxes every year shouldn’t have to be one of them. Fortunately, there are property tax abatement programs that can help property owners save money every year on their real estate taxes and set themselves up for a lucrative sale when the […]

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The post How to Survive a Commercial Property Tax Audit appeared first on The Hegwood Group.

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Sales tax may seem like a minor inconvenience for business owners to track. However, failure to properly keep tabs on a few cents per product over the years can add up and result in devastating circumstances for your business. Unfortunately, sales tax errors are common and several entrepreneurs find themselves in the federal hot seat […]

The post How to Avoid Common Sales Tax Mistakes appeared first on The Hegwood Group.