By now, most of our readers have received their property tax proposed statements for next year. For most folks, the deadline to object to their appraisal has passed and the current reporting shows that a higher number of folks are attempting to lower their property taxes than ever before. This month’s column explores some of the issues with property taxes for citizens who are attempting to have theirs reduced and also to inform others of the process in case they consider filing an objection next year.

Q. How do I find out what my property taxes will be?

A. You will receive a statement each year by mail.

Q. Where does the statement come from and what does it contain?

A. The statement, which is prepared and sent out by the Harris County Tax Assessor-Collector, contains the proposed value of your property(s) along with any improvements thereon. The value number is multiplied by the taxing rates proposed by each taxing authority.

Q. Who are the taxing authorities?

A. They include your local school district, city, hospital district, MUD (municipal utility district), and community college. There are sometimes others depending upon where in the county your property is located?

Q. What does “proposed” tax rate mean?

A. State and local laws allow certain governmental units like the hospital district or community college to set their tax rate during certain times and at different amounts. If one of these units is proposing an increase (or if your lucky, a decrease) in your tax rate, it will be listed on this statement. In other words, if H.I.S.D. taxed you at 7 cents for every dollar your property was worth last year, your new statement may show your rate at 8 cents for every dollar. The reason these rates are sometimes only proposed is due to the fact that state or local law requires additional steps (i.e. a vote) be taken before the rate change can take effect.

Q. How is the rate used?

A. Ultimately, the tax rate for each entity will be multiplied by the total value of your property to determine the tax owed.

Q. How is the total value of my property determined?

A. This is the key to understanding how to contest your tax amount due. The value of your property is determined by adding the cost to buy the parcel of land if it were on the market today and adding it to the value of the improvements on the land today. In short, what is the market price of your property was it to go on the market today. The County looks at comparable market rates to determine this figure for your property.

Q. What do I do if I am in disagreement with the value placed on my property?

A. This is where most tax payers get a decrease in their taxes, if at all. It is difficult to change the rate for each governmental unit without starting a county-wide campaign. However, you can present evidence to the county, both informally and formally, that your property is not worth as much as the county believes. The County has detailed instructions on how to undertake these steps both on their website and at their office on the North Loop West, right here next to The Heights.

Q. Do I need to hire a lawyer for this?

A. No. Most people handle these matters themselves and many have some success. If you have a complicated business property or a very expensive home, then you may want to consider an attorney who specializes in tax work. However, the process is designed by state law and local rules to be easy to navigate by the average taxpayer.

Q. What is the informal and formal process?

A. At your first meeting with County, you will meet with the representative assigned to your file. Many times a taxpayer is able to convince this person of his/her arguments. If not, the taxpayer will be given a hearing before a citizen committee, who will hear the evidence and render an opinion. This hearing while considered “formal” is designed for property owners without attorneys.

Q. What happens if I lose both times?

A. You may file a lawsuit against the county and have an expert testify as to the value of your land. This will be very expensive and will need to be handled by an attorney who specializes on such suits.

Q. Are there any other ways to reduce my property taxes?

A. Yes. Make sure your have filed all of your exemptions. These vary from property and owner so you should consult the County office or their website for specifics but many times these exemptions will reduce your taxes by high percentages.

Q. What is the most popular exemption?

A. Homestead Exemption. If you are living in your home, most times you can file a Homestead Exemption that will reduce your taxes by 10% or more. Also, having this exemption restricts how much your taxes can go up each year so it is the most important exemption to explore.