Understand the role of the appraisal review board and how it works. Appraisal review boards (ARBs) are citizens appointed by appraisal district boards of directors to resolve property tax disputes. They have five specific legal responsibilities:
- determine taxpayer protests concerning value, exemptions or any other appraisal matter;
- determine taxing unit challenges;
- correct clerical errors in the appraisal records;
- act on motions authorized by law; and
- take any other action or determination specifically permitted by law.
ARBs must maintain fairness and objectivity in their hearings. They are an arbiter between the appraisal district and the taxpayer, not an “arm” of appraisal districts. ARB members should ensure that the public understands this fact. The ARB’s role is to settle disputes between property owners and the appraisal district, according to the evidence presented and legal requirements.
The ARB establishes its protest hearing procedures. To the greatest extent possible, the procedures should be informal so that the public can understand and not be intimidated by the process. Each party to a hearing is entitled to offer evidence, examine or cross-examine witnesses and present argument on the matters subject to the hearing. ARBs cannot consider any information that was not presented during the protest hearing.
ARB members may not communicate with the property owner, appraisal district staff or any other person (including school administrators and trustees) concerning the evidence, arguments or merits of a protest, except during a protest hearing. Under certain cases, an ARB member must be recused from the proceeding if there has been improper communications or if there is a conflict of interest. If an ARB member communicates with the chief appraiser or appraisal district employees about a protest outside of the hearing, the offense is a Class C misdemeanor. This penalty does not apply to communications between ARB members and legal counsel or to other communications—not related to a protest—with the chief appraiser.
School districts and other taxing units are entitled to challenge appraisal district actions on the following matters before an ARB: the level of appraisals of any category of property in the district, but not the appraised value of a single taxpayer’s property; an exclusion of property from the appraisal records; a grant in whole or in part of a partial exemption; a determination that land qualifies for appraisal as agricultural, open-space, timber land or restricted-use timber land; or failure to identify the taxing unit as one in which a particular property is taxable.
School districts or other taxing units must file their challenge petitions before June 1 or within 15 days after the date that the appraisal records are submitted to the ARB, whichever is later. The petition must explain the grounds of the challenge. This deadline is only two weeks after the date that appraisal records are usually submitted to the ARB, normally May 15. The limited time for filing requires a great deal of effort and diligence for the school district to review the appraisal records. That review will allow school districts to determine whether or not to bring a challenge.
Diligence in appraisal records review and possible challenges to them are important to school districts because of funding consequences. Appraising below market value of an entire category of property (for example, commercial or industrial) will result in fewer tax dollars at a given tax rate and could adversely affect school funding. Such under-appraisal can result in poor values in the PVS and lead to a district receiving state value. Likewise, improper determinations of special use appraisals would be detrimental. School districts should routinely consult with their appraisal districts about these matters to avoid problems well in advance.
School districts should also be attentive to the public’s perception of the ARBs fairness and objectivity. Taxpayers should be treated with respect and understanding in the hearings, and school leaders can act as “watch dogs” in that regard. They can communicate reported ARB problems to the appraisal district boards of directors who appoint ARB members and thereby promote accountability and an improved system.
