Commercial Property Tax Protest Services2022-04-10T23:13:14+00:00

Commercial Property Tax Reduction Service

Save Big With Our Tax Protest Service

Many property owners are substantially over-taxed because local appraisal districts use inaccurate mass appraisal methods to calculate their tax bill. Our team of experienced tax consultants fight back by using a data-driven and results-oriented process to protest your tax appraisal and reduce your tax bill.

Our team specializes in helping commercial property owners of all sizes maximize their tax savings. We will file all the appropriate appraisal protest paperwork with the county, attend all hearings on your behalf, present the most powerful evidence to argue your case and negotiate a reduction in your tax appraisal. We will continue protesting every one of your properties every year in order to maximize your tax savings.

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Property Specialties

We help clients with all types of commercial properties lower their taxes all across the State of Texas.


Multi-Family


Hotel


Retail


Self Storage


Office/Flex Space


Industrial


Special Purpose

Hire the Strongest Team in the Industry

Consultants

Our senior licensed property tax consultants, who utilize the most aggressive and effective strategies, represent your property in appeals and admin hearings.

Data Specialists

Our data team collects property data, including evidence of an unequal or unfair appraisal, that we can use in county hearings to help lower your taxes.

Attorneys

We partner with attorneys specializing in property taxes in your local area to ensure we are using every avenue possible to lower your taxes.

Appraisers

We hire licensed appraisers, including a few that used to work at appraisal districts, who help develop a customized approach to lower your property taxes.

Our Process

Levels of Appeal

We take an aggressive approach to protesting your property taxes during all levels of the protest process. We utilize every legal avenue available in order to get you the best result. Our team attends all hearings and proceedings on your behalf, presenting only the best evidence to support a reduction.

2021 Case Studies

Check out real examples of our work in action. These are case studies featuring just a few of our 2021 property tax reductions.

Little Caesars
Del Rio, TX
Noticed Market Value: $457,050
Market Reduction: $26,301
We Saved the Owner $625.94 in Property Taxes
5.75% REDUCTION!

Kemper Court Apartments
La Marque, TX
Noticed Market Value: $449,120
Market Reduction: $169,120
We Saved the Owner $4531.69 in Property Taxes
37.66% REDUCTION!

Sunrise Psychological Services
San Antonio, TX
Noticed Market Value: $394,930
Market Reduction: $26,930
We Saved the Owner $752.38 in Property Taxes
6.82% REDUCTION!

SureStay Plus Hotel
Lubbock, TX
Noticed Market Value: $1,996,500
Market Reduction: $306,447
We Saved the Owner $6562.91 in Property Taxes
15.35% REDUCTION!

Sherwin-Williams Paints
Texas City, TX
Noticed Market Value: $912,120
Market Reduction: $197,120
We Saved the Owner $5102.58 in Property Taxes
21.61% REDUCTION!

Slim Chickens
Spring, TX
Noticed Market Value: $1,829,854
Market Reduction: $135,079
We Saved the Owner $3,583.14 in Property Taxes
7.38% REDUCTION!

Our Pricing

We are paid based on performance, so our interests are aligned with our clients. We charge clients a contingency fee, which is a percentage of the property taxes we actually saved them from our property tax protest process. If we don’t actually save you money, our contingency fee is zero. This means our team is motivated to work as hard as possible to maximize your savings.

Included in Our Services:

  • First Class Customer Service with Regular Updates Sent to Client

  • File Appointment of Agent Allowing Us to Represent You

  • File Property Tax Protest by the Deadline

  • Obtain Evidence & Property Card from Appraisal District

  • Review Property Exemptions

  • Research Property Details and History

  • Prepare Case for Tax Reduction using CMA & Equity Analysis

  • Attend Informal & ARB Hearings

  • Review for Judicial Appeal (Binding Arbitration & Litigation)

  • Results Sent with Our Opinion & Interpretation

Pricing Aligned With Your Interests

COMMERCIAL

Less than $2.5 M

Client Portfolio Size

35% Contingency Fee
Based on Client Tax Savings
with No Minimum Fee

COMMERCIAL

$2.5 – $5 M

Client Portfolio Size

30% Contingency Fee
Based on Client Tax Savings
with No Minimum Fee

COMMERCIAL

$5 – $10 M

Client Portfolio Size

25% Contingency Fee
Based on Client Tax Savings
with No Minimum Fee

COMMERCIAL

More than $10 M

Client Portfolio Size

20% Contingency Fee
Based on Client Tax Savings
with No Minimum Fee

Do you also own or manage any residential properties? Use our Get Started form for a custom quote.

Signing up for our service takes less than 5 minutes!

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FAQ

Why should I hire a tax consultant to fight my property taxes?2022-04-01T23:49:44+00:00

Just like you hire an attorney to represent you in court and a CPA to help you with your income taxes, you should hire a property tax consultant to protest your property taxes.  Our team of experts have intimate knowledge of property valuation methods, local tax laws, and appraisal district procedures.  Since our compensation is based on our performance, we are motivated to do the best job possible year after year!

When is the deadline to file a protest?2022-04-01T23:51:09+00:00

The deadline to file a protest is May 15th, or 30 days after the Notice of Appraised Value is issued, whichever is later. Additionally, if May 15th falls on a weekend or holiday, the deadline is pushed to the next business day.

My property is already valued much lower than what I know I could sell it for on the market, why should I protest?2022-04-01T23:51:56+00:00

There are very rare instances in which protesting can negatively impact your property tax appraisal, especially within the parameters of the first two stages of appeal: informal hearings and ARB formal hearings.

Commercial property owners should consider the taxable appraised value strongly in their due diligence when purchasing a property. Since commercial properties can be evaluated with an income approach to valuation, the tax bill is a significant expense that directly effects the NOI, and ultimately the marketability of the property.

Often, even if you think your P&L performance is strong, the CAD may still be making incorrect assumptions about your P&L and cap rate. To know the CAD assumptions, you must file the protest to receive that “evidence” per the Texas Property Tax Code. Additionally, many commercial properties, especially hotels, apartments, self-storage, hospitals and senior living facilities are mass appraised unequally, inadvertently due to inclusion of Business Enterprise Value (BEV) in the assessment. These are important components of our research when analyzing your P&L statement line-by-line.

Once our team performs in-depth analysis, if we determine there is not a viable case after negotiating informally, we have the right to withdraw the appeal. We don’t withdraw many properties, but we may do so in limited cases.

Once the protest deadline passes, is there anything I can do as a property owner?2022-04-01T23:58:18+00:00

There are few instances when property owners can file late “back-file” protests, but please note the likelihood of success is reserved for unique situations and is not a common practice. You can file a late protest based on a substantial overvaluation of your property. This is referred to as a 25.25d protest and you will need to prove that your property has been at least one-third over-appraised for the hearing to be granted at all. For example, if your property is appraised at $4,000,000 then you will need to prove that the value is under $3,000,000 to obtain any reduction at all. This protest must be filed by the tax payment deadline (January 31st) of the following year and your taxes must be paid on-time. Substantial errors most commonly occur with certain commercial properties, or properties impacted by natural disasters.

You can also re-open the appraisal roll for up to four tax years in order to correct a clerical error on your property, which is called a 25.25c protest. This can be for miscalculations or issues with exemptions.

Commercial property assessment values can only increase so much in a given year, right?2022-04-01T23:59:17+00:00

Incorrect. Commercial properties have no limit to the yearly increase in appraised value. A cap only applies to a residential property with a homestead exemption.

Fee Appraisal vs Mass Appraisal2022-04-02T00:01:35+00:00

During a fee appraisal, an independent appraiser inspects the subject property, considering all three valuation approaches: sales comparables, income and replacement cost. The analysis is performed specifically for the subject property.

On the other hand, mass appraisal, is the process by which large volumes of properties are appraised by the central appraisal district to determine how much to increase or decrease property values in an area. A universe of properties are valued on a given date, utilizing standard methodology and common data. In summary, a mathematical model based upon a database of market conditions is created to determine your assessment value.

Due to this reasoning, banks do not consider appraisal district values to lend for any type of real estate loan, and require a fee appraisal.

Do large repairs and deferred maintenance factor into my protest?2022-04-02T00:02:48+00:00

Most of the time, yes! We can build the strongest case if you have organized and recent documentation of your deferred maintenance. It is most important to address big ticket items such as the roof, foundation, structural issues, plumbing, electrical, A/C and others. When you work with our team, we make it easy for you to send us photos, documents and all relevant info securely and electronically.

Why is my Profit & Loss Statement or Rent Roll important?2022-04-02T00:03:37+00:00

Commercial properties are valued by County Appraisal Districts (CAD) using one of two methods to valuation: the cost/replacement value or the income/expense approach. We unfortunately do not get to determine the CAD approach to valuation, but we can certainly prove why their assumptions in their approaches are incorrect.

The income approach primarily focuses on the income and expenses generated from an income producing asset, along with the cap rate. The CAD will make assumptions about each of these details. Our team thoroughly reviews your actual P&L and rent roll statements to compare to the CAD assumptions. There are many components of financial statements that are allowed and not allowed in the Texas Property Tax Code. Most importantly, we then leverage our in-house and various external data sources to argue the cap rate and market conditions.

The cost approach focuses on industry standard building costs. The CAD makes assumptions of costs and other physical attributes of your property that are typically incorrect. We utilize industry recognized cost data and appraisal adjustments to effectively create strong arguments and lower valuations. If you recently built your property, we factor in actual building costs, but will also consider if your property may be recognized at a lower valuation assuming standard costs.

There are two other ways to lower commercial appraised values. The sales approach to valuation and the uniform & unequal basis. Our team strategically reserves both of these methods for Binding Arbitration and Judicial Appeal stages of appeals.

As your licensed property tax consultant, all financial statements submitted to us are stored securely and handled with a fiduciary duty.

Do you help with Judicial Appeal/Litigation and what does that process entail?2022-04-02T00:04:16+00:00

Yes, only for situations which we recommend. When we recommend Judicial Appeal to a client, we are very confident in our ability to reduce an appraised value further than what was achieved in the informal or formal ARB hearing.

The timeline and procedures are very important on our end when proceeding with Judicial Appeal. In order to file litigation in District Court we must first attend an ARB formal hearing, receive the paperwork that we did so from the CAD, and then file suit within 60 days of receiving that paperwork. Litigation is generally reserved for properties in excess of $5 million and the value is discrepancy is more than $100,000. However, in some counties that we do not strategically see Binding Arbitration as the best option, we may recommend litigation for properties above $500,000. We are always thinking of the economic benefit for the client, calculating the realistic savings in taxes along with the filing fee hard cost.

What is the difference between Binding Arbitration vs. Judicial Appeal?2022-04-02T00:04:49+00:00

Once we represent a property owner at the CAD for the first two stages of an appeal, the informal and Appraisal Review Board (ARB) formal hearing, we occasionally recommend continuing the appeal in one of two ways: binding arbitration or judicial appeal.
Binding arbitration is permitted for small to medium sized commercial properties, up to $5,000,000. Filing fees are typically around $500-1500 and could be refundable depending on the results of the arbitration.

A judicial appeal, also referred to as litigation, requires a filing fee of about $400-600 and our attorney is involved in the legal filing process.
In both stages, our team continues to manage the appeal process the same way as the first two stages. The only difference is, if we recommend one of the two advanced stages of appeal, you will be required to pay the filing fee to the county to initiate the process. We continue to work on a contingent, performance-based fee. Typically, our contingency fee increases 10 percentage points for the reduction that is achieved in Binding Arbitration or Judicial appeal due to the increased timeline. It is common to have a reduction achieved in a formal hearing and then another reduction in Binding Arbitration/Judicial Appeal.

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