Generate a Texas commercial property tax appeal demand letter. Protest excessive appraisals under Texas Tax Code Chapter 41 before the May 15 deadline.
Generate My Letter — $19Texas commercial property owners face some of the highest effective property tax rates in the United States, in large part because Texas has no state income tax and relies heavily on local ad valorem taxation. When a county appraisal district overvalues your office building, retail center, warehouse, or industrial site, you have a statutory right to protest. The Texas Tax Code gives owners a structured, deadline-driven process beginning with an informal review, then a formal Appraisal Review Board (ARB) hearing, and ultimately judicial appeal in district court or binding arbitration. A well-drafted protest and demand letter is the foundation of a successful appeal—it preserves your rights, frames the valuation dispute, and signals to the appraisal district that you are prepared to litigate if necessary.
Property tax appeals in Texas are governed primarily by Chapters 41 and 42 of the Texas Tax Code. Each year, the county appraisal district (CAD) determines the market value of commercial property as of January 1 and mails a Notice of Appraised Value, typically in April or May. Owners may protest on several statutory grounds under § 41.41, including: (1) the appraised value exceeds market value; (2) the property is appraised unequally compared with a representative sample of comparable properties (the 'equal and uniform' remedy under § 42.26); (3) the property was improperly included on the appraisal roll; (4) denial of an exemption; or (5) any other action that adversely affects the owner.
The protest is filed with the ARB, an independent body that hears evidence from both the property owner and the chief appraiser. Hearings must be scheduled with at least 15 days' notice (§ 41.46), and the owner is entitled to request the appraisal district's evidence packet at least 14 days before the hearing under § 41.461. If the ARB's order is unfavorable, the owner may, within 60 days of receiving the order, file (a) a petition for judicial review in district court under § 42.21, (b) a request for binding arbitration under Chapter 41A for properties valued at $5 million or less (or homesteads of any value), or (c) an appeal to the State Office of Administrative Hearings under Chapter 41B for certain properties valued over $1 million. The 'equal and uniform' remedy is uniquely powerful in Texas and frequently produces reductions even when market value alone would not.
A Texas commercial property tax demand and protest letter serves two purposes: it satisfies the statutory notice requirement to initiate an ARB protest, and it lays out the factual and legal grounds for a reduction so the appraisal district has incentive to settle informally. An effective letter identifies the property by account number and legal description, states each protest ground under § 41.41 (almost always both 'excessive value' and 'unequal appraisal'), and demands a specific revised value supported by evidence.
Strong supporting evidence includes a recent fee appraisal, an income-and-expense statement showing actual net operating income, a sales comparison of recent arm's-length transactions, cost-approach data for newer construction, and a list of comparable properties with lower per-square-foot assessments demonstrating unequal appraisal. The letter should also formally request, under § 41.461, all evidence the chief appraiser intends to use at the hearing, including comparable sales, equity comps, and any income models.
Many Texas appraisal districts settle commercial protests informally before the ARB hearing once they see organized evidence and a credible threat of litigation or arbitration. Your letter should make clear that you reserve the right to pursue judicial review under § 42.01, binding arbitration under Chapter 41A, or a SOAH appeal, and that you intend to seek attorney's fees under § 42.29 if you prevail. A professional, evidence-backed demand letter often produces a settlement offer within weeks and avoids the time and cost of a contested hearing.
Protests must be filed in writing with the ARB of the county where the property is located by May 15 or 30 days after the notice of appraised value was delivered, whichever is later (§ 41.44). There is no filing fee for an ARB protest. Binding arbitration under Chapter 41A requires a deposit ranging from $450 to $1,550 depending on property value, refunded if the owner prevails. Judicial review in district court requires payment of standard civil filing fees (typically $300–$400) and continued payment of the undisputed portion of taxes before the delinquency date under § 42.08, or the appeal will be dismissed. Texas small claims (justice court) jurisdiction up to $20,000 does not apply to property tax appeals, which must proceed through the ARB and district court.
Property tax in Texas is governed by the Texas Property Tax Code, Chapter 41 (Local Review / Protest) and Chapter 42 (Judicial Review) (Tex. Tax Code Ch. 41 (§§ 41.41 Right of Protest, 41.44 Notice of Protest); Ch. 42 (judicial appeal); Ch. 23 (appraisal, incl. § 23.23 residence homestead cap)). Assessment cycle: Annual. Property is appraised each year as of January 1 by the county appraisal district (CAD); notices of appraised value are typically mailed in April/May. Assessed value: Texas requires appraisal at 100% of market value as of January 1 (full-value assessment; no fractional statutory ratio). A separate 10% annual cap on the increase in appraised value applies to residence homesteads under Tex. Tax Code § 23.23 (taxable value cannot rise more than 10% per year, plus new improvements).
County Appraisal District (CAD) and its Appraisal Review Board (ARB) administer local appraisal and protests; the Texas Comptroller of Public Accounts Property Tax Assistance Division provides statewide oversight, forms, and guidance. Judicial appeals go to state district court. The window to act is short — protest must be filed by May 15 or the 30th day after the appraisal district delivered the notice of appraised value, whichever is later (Tex. Tax Code § 41.44). If the deadline falls on a weekend or legal holiday, it shifts to the next business day. Late protests may be allowed before the ARB approves the appraisal records upon good cause.
A recent change to watch: In November 2025 Texas voters approved property-tax-relief constitutional amendments. Proposition 13 (with SB 4) raised the school-district general homestead exemption from $100,000 to $140,000, effective 2026. Proposition 11 raised the additional exemption for homeowners 65+ or disabled from $10,000 to $60,000. Proposition 9 raised the business personal property exemption from $2,500 to $125,000.
Evidence that works: Comparable sales, sales/market data, independent appraisals, photographs of condition/defects, repair estimates, closing statements for a recent purchase, income and expense statements (income-producing property), equity/uniformity comparison of assessed values, and appraisal-district-provided evidence.
Next-level appeal: After the ARB order, the owner may (1) appeal to state district court in the county where the property is located within 60 days of receiving the ARB order (Tex. Tax Code Ch. 42), or (2) request regular binding arbitration within 60 days (available for residence homesteads of any value or properties appraised at $5 million or less); certain matters may also go to SOAH.
Appeal deadline: Protest must be filed by May 15 or the 30th day after the appraisal district delivered the notice of appraised value, whichever is later (Tex. Tax Code § 41.44). If the deadline falls on a weekend or legal holiday, it shifts to the next business day. Late protests may be allowed before the ARB approves the appraisal records upon good cause.
First-level appeal: File a written Notice of Protest (Comptroller Form 50-132) with the local county Appraisal Review Board (ARB). An informal review with appraisal district staff usually occurs first, followed by a formal ARB hearing if unresolved.
Grounds you can raise: Appraised (market) value too high (over-valuation); unequal appraisal relative to comparable properties; wrongful denial of an exemption or special appraisal; errors in the appraisal records; inclusion of property that should not be taxed; and other adverse actions of the appraisal district or ARB (Tex. Tax Code § 41.41).
How your value is assessed: Texas requires appraisal at 100% of market value as of January 1 (full-value assessment; no fractional statutory ratio). A separate 10% annual cap on the increase in appraised value applies to residence homesteads under Tex. Tax Code § 23.23 (taxable value cannot rise more than 10% per year, plus new improvements).
Exemptions to claim: General residence homestead: $140,000 school-district exemption (raised from $100,000, effective 2026 via SB 4 / Prop 13). Age 65+ or disabled homeowners: additional $60,000 school exemption (raised from $10,000 via Prop 11), plus a school-tax ceiling (freeze). Disabled veterans: sliding scale from $5,000 (10-29%) up to $12,000 (70%+); 100% service-connected disabled veterans receive a total homestead exemption. Business personal property exemption raised to $125,000 via Prop 9. Most homestead applications due by April 30.
The hearing: Informal meeting with appraisal district staff, then a formal ARB hearing before a panel of citizen board members; owner and district present evidence and testimony. Hearings may be in person, by telephone, by videoconference, or by written affidavit; most complete by about July 20.
First, file a written Notice of Protest (Comptroller Form 50-132) with the local county Appraisal Review Board (ARB). An informal review with appraisal district staff usually occurs first, followed by a formal ARB hearing if unresolved.
If that fails, after the ARB order, the owner may (1) appeal to state district court in the county where the property is located within 60 days of receiving the ARB order (Tex. Tax Code Ch. 42), or (2) request regular binding arbitration within 60 days (available for residence homesteads of any value or properties appraised at $5 million or less); certain matters may also go to SOAH.
Mind the deadline: protest must be filed by May 15 or the 30th day after the appraisal district delivered the notice of appraised value, whichever is later (Tex. Tax Code § 41.44). If the deadline falls on a weekend or legal holiday, it shifts to the next business day. Late protests may be allowed before the ARB approves the appraisal records upon good cause.
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