Fundamental Truths of Property Tax Valuation in Texas

1. The lowest achievable value is generally not attainable without litigation.

2.The purchase price of a specific commercial property is usually not "market value" under certain definitions and interpretations of the Texas Property Tax Code.

3.The components of economic value - rent, occupancy, expenses, reserves, and cap rate—are often definable at rates substantially below or different from actual property conditions. There are many influences on rent which must be considered intangible and the value indicated as non-taxable. There must be a balance among all economic indicators.

4.An equity analysis case can be complete and effective only after all competitive properties have been assessed at final values (and properly adjusted)—sometimes a year or more after the assessment date. You have to file suit to get to that point.

5.You can pursue and win lower property values after filing deadlines have passed and, sometimes, after it appears that all administrative remedies have been exhausted. You can go back up to five years to win relief.

6.There is such a wide range of personalities, policies, and capabilities within each CAD that your chance of getting a fair valuation is diminished without the best representation.

7.Not all property tax consultants are created equally. Just as with lawyers, architects, professional athletes, and doctors, there is always someone who is best; paying a lower rate or fee does not equate to lowest net tax savings.

8.You get five or more chances to win your case if you take advantage of all opportunities—if you miss one, you may not have the same chance at the next. Failing to make a specific case early may diminish your subsequent rights. A well-prepared case presented at the first opportunity should be the same case you take to trial.

9.You don’t have to pay all of the taxes you are billed in order to be in compliance; there are rights and privileges afforded taxpayers which can benefit those with the knowledge afforded by the best representation.

10.It takes skill and power, determination and courage, time and money to win the lowest achievable value. Once you get the lowest imaginable value, you need to stretch your imagination to an even lower value.