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.