Appealing Texas Property Tax Bills with 25.25c and 25.25d

By: Grant Pennington | Senior Manager – Property Tax

With Texas property tax bills starting to roll out, a lot of taxpayers will begin seeing higher amounts due than anticipated as a result of notable assessment increases over the previous year. Though the regular Texas appeal deadline passed back in the Spring, there may still be appeal avenues available to assist taxpayers in lowering their property tax burden.

The Texas Property Tax Code allows property owners the ability to file an appeal after the deadline has passed under certain circumstances. These are outlined in Chapter 25, Section 25 of the tax code. The two most notable “late” appeal avenues for taxpayers to file are sections 25.25c and 25.25d.

Filing an Appeal Under Section 25.25c

The most common property tax “late” appeal opportunity is under subsection (C) of the Texas Property Tax Code. An appeal under 25.25c can impact the tax roll for the preceding five years in order to correct the following issues:

  1. Clerical errors that impact the property owners tax liability
  2. Multiple appraisals of a property in a single tax year
  3. Inclusion of property that does not exist in the form or location described in the appraisal roll
  4. Error in ownership as of the lien date, January 1st

A few examples of issues that could be grounds for an appeal under 25.25c could be:

  1. Mis-keyed assets onto the wrong schedule (clerical)
  2. Businesses moving and both locations remaining active on the tax roll (multiple appraisals)
  3. Inventory being assessed to a location that has no inventory, or closed location not being removed from the appraisal roll (inclusion of property that does not exist)

Filing an Appeal Under Section 25.25d

In Texas you can qualify for a 25.25.d “late” appeal if a regular appeal was not filed by the May 15th deadline. To qualify for appeal, the taxpayer’s opinion of value and final Assessor decision must determine that the inital notice of value was over assessed by at least 1/3 (33%). When trying to establish the threshold for a non-homestead property, the quick easy way to remember is to multiply your notice value by 75%. If you can prove your value is equal to or less than that threshold, you may have grounds for an appeal.

If approved by the Assessor, the taxpayer will incur a 10% late correction penalty. The deadline to file a 25.25.d is January 31st of the following year.

Things to Consider

When considering “late” appeals it is extremely important to remember, per section 25.26 of the Texas Property Tax Code, Forfeiture of Remedy for Nonpayment of Taxes; all taxes not in dispute must be paid timely. Late appeals can and will be dismissed for not paying the amount not in dispute. Your property tax consultant can help you determine what that amount is. Invoke Tax Partners always recommends risking overpayment and receiving a refund, as opposed to underpayment and risking having your appeal dismissed at the Appraisal Review Board (ARB).

Tax code Chapter 25, Section 25 is only a brief section of the appeal opportunities available to taxpayers. Because the Texas Property Tax Code is complex with many ways taxpayers can file an appeal on their property tax bills, even after the traditional appeal window has passed, we recommend partnership with an experienced property tax provider. With four Texas locations, Invoke Tax Partners’ team of property tax consultants provide experience and expertise that is second-to-none in the industry, making our consultants preferred partners for some of Texas’ largest property owners. Contact us today to ensure your portfolio is reviewed for all appeal opportunities.