When filing a property tax appeal, you must have come across the word binding arbitration, but what is it all about. Arbitration refers to resolving a dispute outside of the court. Parties reach out to an arbitrator; the arbitrator listens to the disputes and comes up with a decision. This blog is a primer on binding arbitration. Get to know how to qualify for it, the arbitration rules, to file or not to file a binding arbitration, and a lot more.
What is binding arbitration?
It is nothing but an alternative to filing an appeal of the ARB decision to the district court. An arbitrator listens to the facts of your appeal and takes a decision accordingly. The process is less formal when compared to that of a trial or a courtroom hearing.
Your role during the entire process
You can present the case all by yourself. Call witnesses, present documents that serve as a piece of evidence for your case, and argue.
How to qualify for binding arbitration?
Property owners can request a binding arbitration only if the property is real or personal property. To qualify you must first file the Form AP-219, request for binding arbitration form along with the deposit payable to the comptroller’s office. This must be done within 60 days; from the time you receive an ARB order of determination.
The arbitration process
Once you submit the form, the appraisal district reviews the application and forwards the same along with the deposit made to the comptroller’s office within 10 days. An arbitrator is then appointed by the comptroller’s office to listen to your dispute. In the hearing property owners present their case and the county appraisal district will present the ARB case. Time constraints are less when compared to that of an ARB hearing and hence, you can take your time to lay out the entire case. Make sure you prepare and bring evidence along that explains why the value you mentioned is more appropriate than that of the ARB.
Should you file for binding arbitration if you are not satisfied with the value after the ARB Hearing
Do you need an attorney or CPA for arbitration?
Property owners also have the option to bring along with them an attorney, CPA, or even hire a property tax consultant to attend the hearing on your behalf or with you. If it is the first time you are filing a binding arbitration, then having a property tax consultant along is considered a better choice. The arbitrator takes into consideration all the information you present and notifies you about his decision at a later date.
The value is either reduced or left the same as the ARB value. If you win it means the value is closer to what you had determined. If you win the case, you will be refunded $50 and the remaining arbitration fee will be paid by the county appraisal district. The arbitrator’s decision is considered final. Get to know in detail about binding arbitration here.
If the chief appraiser in my county raises appraisals of property in this small rural subdivision from $5,300/acre to $40,000/acre and, the chief appraiser settled with one owner who has three lots together with a house on on one of those lots at $11,000/acre as now posted on appraisal district’s website while my lots are still appraised at $40,000 and still being protested for 2021. My ARB hearing was Dec 14th, 2021. Isn’t this an obvious case of unequal appraisals? My tax burden on just 3.5 acres of my lots equals the same acreage as this property the chief appraiser settled with @ $11,000/acre is 73% more for the same 3.47 acres.
He is being billed for 2021 property taxes totaling just $704 while I am being billed for the same amount of acreage at $2,288… 73% more! How could an binding an arbitrator not lower my appraisal from $40,000 down to the same $11,000/acre as was apparently settled even before I went into my ARB hearing. This 3.5 acres of mine I am comparing to the other guy’s is not even including another 1.5 acres of lots. I am just comparing land tax figures, not house tax figures. How is this even legal? I need to know some things before filing for Binding Arbitration shortly. The appraiser is did not even consider a number of sales recently made in the $10,000, to $12,000 range.
There is also a county line cutting through the subdivision. Properties in the other county on the other side of the “dotted line” are in the $5,000, $6,000, $7,000, $9,000, $12,000 to $15,000 appraisals. Aren’t appraisals generally expected the same in subdivisions? We use the same roads, have the same entrance, use the same public Water system and are part of the same HOA.
Thanks for any info.
additional:
I just cannot understand how one foot on either side of the county line can be appraised at $40,000/acre on one side and on the other side of the county line be at $7,000/acre. I feel something is absolutely wrong here. I have to go into to speak with the chief appraiser for him to tell me what my options are, he says, and he will not discuss my case at all. Once I file for Binding arbitration, what chance is there that he would offer to sit down and settle with me before an Arbitrator appointment arrives?
I am interested to file property tax arbitration with collin county Appraisal District. Here is my address 7780 Arches Lane, Frisco, Tx. Please let me know my chances and would like to hear from you