Dallas Appraisal District is assigned the task of locating and accurately valuing all taxable property within the county. Personal property not used for the production of income is not taxable. However, real property, business personal property and mineral interests are taxable unless they are subject to an exemption. For example, real estate owned by the government (such as Dallas County or the City of Dallas) is typically exempt from taxation.
DCAD serves the following cities: Dallas, Addison, Balch Springs, Cedar Hill, Cockrell Hill, Combine, Coppell, DeSoto, Duncanville, Farmers Branch, Ferris, Flower Mound, Glenn Heights, Grand Prairie, Highland Park, Hutchins, Irving, Lancaster, Lewisville, Mesquite, Ovilla, Richardson, Rowlett, Seagoville, Sunnyvale, University Park, Wilmer and Wylie.
Hire O'Connor and Associates to Protest Your Dallas County property taxes.
Tips for Appealing Your Property Taxes in Dallas County
- Recognize you can successfully appeal your Dallas property taxes. Most property tax appeals are sucessful!
- Protesting annually is the cornerstone of minimizing your property taxes.
- A homestead exemption often reduces property taxes by 20%. It is available if you owned and resided in your home on January 1 of the relevant tax year. The most meaningful way to reduce your property taxes for your home is to obtain a homestead exemption. File your homestead exemption in January of the year after you purchase your house. If you are 65 or older, or handicapped, obtain the relevant exemption.
- Reducing property taxes is an iterative process. The prior year's assessed value is given strong consideration in this years appeal. Reduce property taxes by annually appealing. You can file a notice of appeal by utilizing the comptroller's form or by sending a letter to the Dallas Central Appraisal Review Board.
- Property owners have the right to obtain all evidence the appraisal district will utilize at the appraisal review board (ARB) hearing 14 days before the hearing. Obtaining the Dallas Central Appraisal District evidence (House Bill 201 information) greatly increases your chances for success at the Dallas Central Appraisal Review Board hearing. If you request this information, the appraisal district can't lawfully present any additional information at the hearing.
- The appraisal district maintains a "record card" for each property with information such as land area, building size, quality of construction, condition and many other fields of data. Research the Dallas Central Appraisal District "record card" which has information used to value your property. There are often errors with factors such as land area, building area, year built, year remodeled, grade (quality of construction) and CDU (condition, utility and desirability).
- Market value is the sales price you should expect to obtain in an arm's length sale. Unequal appraisal addresses whether your assessment is fair. When preparing for your Dallas Central Appraisal Review Board hearing you should gather information on market value and unequal appraisal.
- Comparable sales summarize information regarding the sales price, size, age, condition and other relevant data for recently sold properties which are similar to yours. Comparable sales are the cornerstone of market value. Sources of comparable sales data can be found in the House Bill 201 package obtained from the Dallas Central Appraisal District and MLS sites.
- Unequal appraisal is a relatively new option for appeal at the ARB hearing. The legislature clarified this issue in 2003. You can reduce your property taxes (for homes or commercial real estate) by presenting information on comparable properties with more favorable assessments. Unequal appraisal is often effective in reducing property taxes. Even if your assessed value is below market value, you can appeal based on unequal appraisal.
- Unequal appraisal occurs when the Dallas Central Appraisal District has assessed your property at a higher level than similar properties. You can research assessment comparables on the Dallas Central Appraisal District website. Seek assessment comparables which are as similar as possible with regard to location, age, size and are the same type of property.
- Sales chasing occurs when county appraisers selectively reappraise recently sold properties. This occurs because of the annual ratio study performed by the Texas Comptroller. (ARB members at a 2006 ARB hearing explained sales chasing is equal appraisal because all properties are subject to sales chasing.) Unequal appraisal can be particularly helpful for recently purchased properties. Dallas Central Appraisal District appraisers are reluctant to reduce the assessed value, when it is below the recent purchase price, even if it is unequally appraised. However, the impartial Dallas Central Appraisal Review Board is required to consider appeals on both market value and unequal appraisal.
- Arraying data in a table or matrix is an effective way to present an unequal appraisal analysis. Important components of an unequal appraisal presentation include a reasonable number of comparable properties (about 2 to 10) that are appropriately adjusted. These properties are usually considered to be properties that are similar in regard to the quality and quantity of improvements.
- The cost of an independent appraisal can be substantial. Compare potential property tax saving with the cost of an appraisal. Obtaining an independent appraisal can effectively document market value and will receive meaningful consideration from the Dallas Central Appraisal District appraiser and the Dallas Central Appraisal Review Board panel members.
- Dallas Central Appraisal District typically established the assessed value for recently built properties based on land value plus the estimated cost of construction as of January 1. When the Dallas Central Appraisal District cost estimate exceeds the actual construction costs (as of January 1), it probably makes sense to provide cost data. You should also consider unequal appraisal. For recently built properties, the Dallas Central Appraisal District appraiser will want to review actual construction cost. A cost segregation report prepared by a qualified appraiser can separate personal property from real property.
- The Dallas Central Appraisal District appraiser usually attempts to resolve the property tax protest at the informal hearing. He is not compensated based on how little he adjusts property tax assessed values. At the hearing you will spend a few moments developing a rapport with the appraiser. Be polite with the appraiser - the appraiser is not opposed to reducing your property taxes.
- Bring 5 copies of documents you plan to present to the ARB. Organize your thoughts and information before starting your presentation. Your presentation to the Dallas Central Appraisal Review Board should be kept between three to five minutes, since the entire hearing only lasts 15 to 20 minutes.
- In 2005, the Texas Legislature provided another option to extend the property tax appeal process - binding arbitration. If you are not satisfied with your results from the appraisal review board hearing, you can request binding arbitration. When compared to a judicial appeal, advantages of binding arbitration include a lower cost, informal process, speedier resolution and the loser pays provision.
- Binding arbitration allows property owners an informal and inexpensive option if not satisfied with the Dallas Central Appraisal Review Board's decision. Binding arbitration is available for owners of properties with an assessed value of $1 million or less (after the Dallas Central Appraisal Review Board hearing) who are only appealing on market value. However, binding arbitration can only be used for market appeals for real estate with a value of $1 million or less after the ARB. It may not be used for unequal appraisal, business personal property or minerals.
- Many owners of single-family and commercial real estate use a property tax consultant so each property is protested each year. Although you can appeal on your own, hiring a consultant to appeal on your behalf is risk free because there is no flat fee and no upfront costs; you only pay a portion of the savings. With a contingency fee, there is no cost unless your property taxes are reduced.
- Who is on the Dallas Central Appraisal Review Board?
- Market data regarding occupancy rates and rental rates can help in preparing for an appeal for commercial property. Also obtain comparable sales data.
- Business personal property rendition and appeals - new law requires annual rendition
- Protesting commercial property taxes - annual appeal recommended
- Exemption form - free form for homestead exemption
- Hire O'Connor - risk free plan, no fee unless we reduce your property taxes
- Property tax frequently asked questions - good starting point
- Key property tax dates - deadlines for renditions and filing an appeal
- Texas property tax laws - complete version
- Substantial error appeal form - consider this if you missed the May 31 deadline
- Property tax hearing affidavit - you can send an affidavit instead of attending hearing in person
- Property tax binding arbitration request - for real estate (market value appeal up to $1 million)
- Property tax rendition form - renditions are due 4/15 for BPP