November 2, 2009

By now property owners are receiving their 2009 property tax statements, and are making plans for payment.

Now is the time to start planning on how to reduce the property taxes for 2010. Several changes have occurred in 2009 property tax law that will be of great assistance in reducing your taxes for 2010.

Texas Senate bill 771 was passed and goes into effect 01/01/2010. This bill has several direct areas of change to Texas property taxes, but the most important change is the introduction of Binding Arbitration for Business Personal Property for Texas business owners. Until this bill’s passage, Binding Arbitration was only allowed for real property; now Binding Arbitration is allowed for Business Personal Property also.

Also, the valuation cap for binding arbitration was removed for personal residences. Prior to Senate Bill 771 being passed, the valuation cap was $ 1,000,000.00.

Another important change is that a CPA licensed in Texas is now allowed to be an arbitrator, pending completion of certain education and other qualifying requirements. Attorneys are also now allowed as arbitrators.

********************************************************************

Do not forget about Section 41A Texas Property Code, binding arbitration for real and personal property. In checking at various appraisal districts, I find very little activity from property owners in filing for binding arbitration. The binding arbitration process is relatively quick, and uses an independent arbitrator. You may represent yourself, or have a qualified party represent you. This procedure is a very valuable tool for the property owner and should not be ignored.

Call us for more details on this item, as there is a time limit after the review board’s order.

*********************************************************************

Best wishes on saving property tax $$$$$!

*********************************************************************

Sincerely,

Steve M. Spencer, CPA