How can you reduce
my property taxes?
BR Lawson & Co. is a full service property tax consulting firm. The members of B.R. Lawson & Co. have a diverse body of knowledge and experience that enables us to prepare for and resolve almost any property tax situation. We understand the intricacies and complexities of the appraisal process and will use our knowledge and insight to aggressively challenge and resolve your tax assessment. Our goal is to obtain the lowest possible property tax assessment allowed by law.
When is the deadline
to protest my property value?
In Texas, the deadline to protest protest property values is May 31 or 30 days after the appraisal district sends notice of the assessed value, whichever is later. The appraisal district is required to send notice if the assessed value is increased by more than $1,000 from the prior year's value. In most cases the deadline is May 31. If the 31st falls on a Saturday or Sunday, the deadline is the following business day.
Should I hire you or
should I protest my property myself?
You must answer this question yourself. The advantage of hiring B.R. Lawson& Co. is you have the experience and knowledge of our professionals working for you. Having worked for the Harris County Appraisal District, we understand the appraisal process and the techniques used by the appraisal districts to value property. In addition, you will save yourself time by not having to prepare for and attend the protest hearing.
Is there a fee if
you don't reduce my property value?
No! If you sign a contingent fee Service Agreement, you will not be billed unless we reduce your property taxes. No savings….No cost to you
Do you help me after
the first year?
Yes! Your Service Agreement will remain in effect until you cancel it. We will continue protesting each year and send you a bill only if we reduce your property tax assessment for that year. Under a contingent fee Service Agreement there are no subsequent costs unless tax savings are generated in subsequent years. You may cancel the Service Agreement at any time with 30 days notice.
If I hire you what
do I need to do?
To get stared, we will need a couple of forms signed by you. We will ask you to fill out a Questionnaire that provides us with relevant information about your property. Also we will need an Appointment of Agent form. Before the appraisal district will allow us to represent you, we must file this signed form with them. Depending on the property type, we may ask you for some additional information. After that, we will prepare for and attend the protest hearing.
What other services
are available?
We are a full service property tax consulting firm. We will help businesses prepare and file personal property renditions. We will also review tax bills and other related services. If you are interested in additional property tax consulting services, please call us.
"Fair Market
Value" is the price for property that would be agreed upon between a
willing and informed buyer and a willing and informed seller under usual and
ordinary circumstances; it is the highest price a property would bring if it
were exposed for sale on the open market for a reasonable period of time.
As you can see from the definition above, "fair market value" is a
theoretical concept. Many sales occur at prices other than the "fair
market value." Often the sale price is adjusted because of time pressures
on the buyer or seller. Other factors that affect sale prices include
owner-held mortgages and property transfers within families.
Is the purpose of a revaluation to increase taxes?
No. The purpose of an assessment revaluation is to make all of the parcels in an assessing unit fair and equitable in relation to each other, based on current market trends. In a declining market, revaluation could actually lower the assessments.
Assessments are based on fair market value. Whether you did the work yourself or hired a contractor, the value is in the end product. Any additional improvements to an existing structure adds what is known as contributory value. This value is not based on cost, but rather the added value it "contributes" to the overall worth of the property.
How does the assessor determine the value of my property?
Market or Sales Comparison Approach
This first method compares your property (known as the subject property) to others (comparables) that have sold recently. Before any sales can be used in this approach it must be determined if they are "arms length" or good, open market sales. ("Arms length" means that this property sale is the only connection between the buyer and seller; they are not family members, employer/employee, or linked in any other way.) As there may be outside factors that go into a sale price the assessor must analyze each sale very carefully. Other important valuation considerations are location, size, condition, quality, and time of sale.
The sales comparison approach is probably the assessment method that is used for most properties. It is the obvious choice for assessing housing tracts, strip malls, recreational properties located on the same lakeshore, and other sets of similar properties. The sales comparison approach is difficult to apply to custom-built (or older) homes in rural areas, farms, and other unique properties.
Income Approach
This property valuation method takes into consideration how much income your property would produce if it were rented, then determines -- through a capitalization formula -- what a prudent investor would typically pay for your property. To make this calculation the assessor must consider many things including current market rents, vacancy rates, operating expenses, taxes, insurance, maintenance costs, and the expected rate of return on investment.
Cost Approach (Replacement Cost New Less Depreciation or RCNLD)
This approach is based on the cost of replacing your property new, less depreciation. The assessor begins by estimating how much money it would take, with current costs of labor and material, to replace your property with one similar. In addition to the value of any improvements, the assessor must also separately estimate the value of your land as if it were vacant. Then, if your property is not new, the assessor must determine the amount your property has depreciated and adjust the assessment accordingly.
As you can imagine, a properly documented cost-based assessment is a lot of work. As a result, it is generally the last choice for the assessor.
Should assessments change from year to year?
Assessed values should generally follow the market trends. When the market is flat there should be little change in the overall assessments. It is also possible for some areas of a municipality to increase in value, while others may decrease. In fact, an across-the-board change for all parcels is the exception, rather than the rule. Properties in some areas or neighborhoods -- such as around lakes -- often increase in value faster than other areas.
It is important to remember that the assessor does not create the value. The real estate marketplace establishes the values. It is the assessor's duty and responsibility to understand these values and assess your property accordingly.
Why do we have property taxes?
Property taxes originated as a method for distributing the costs of certain geographically based services such as schools, fire protection, lighting, water & sewer districts. This "ad valorem" or "according to value" method of taxation attempts to distribute these costs fairly among those who theoretically benefit from the services. The amount of tax attributable to each property is in proportion to that individual property's value. The property tax has always been considered relatively stable source of money because it does not fluctuate as do sales and income taxes.
What else does the assessor do?
The assessor's office maintains current data on each parcel it assesses. This data includes ownership information, maps of parcel boundaries, inventories of land and structures, property characteristics, and any applicable exemptions. The assessor's office also, of course, analyzes trends in sales prices, construction costs, and rents to estimate the value of all property.
What are my rights and responsibilities as a property owner?
If you do not agree with the value your assessor has placed on your property, you should call or stop by the assessment office to discuss the matter. Contrary to popular belief, the assessor's job is not to artificially increase assessments, but to maintain the most equitable values possible on all properties. Most assessors maintain records on many hundreds, if not thousands of properties. It's reasonable to expect an error or oversight from time to time.
You can help yourself and your assessor by making sure the information on file is as accurate as possible. The assessor should answer your questions about your assessment and explain how to appeal if you cannot come to an agreement. You can help by providing accurate information.
It's easy to lose your temper when you're talking about something as important as taxes. Try to remember the limits of your assessor's job responsibilities. If you think your assessment is too high, the assessor's office is the right place to go. If you think taxes are too high, you should make your opinion known to the elected officials who make up the budget -- your mayor, supervisor, city, village, or town council, county legislature, school board, etc.