September 1, 2011

Next month brings the 2011 property tax notices from the taxing authorities.

Most taxpayers upon opening these statements will again make the promise to try and reduce the property tax burden for 2012. The time to start keeping that promise is now! New laws were pased in 2011 that allow property owners greater opportunities to reduce their taxes.

These new property tax laws were passed and many went into effect 01/01/2011. The new laws have 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 2010, 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 the new laws being passed, the valuation cap was $ 1,000,000.00.

Also, individuals are now allowed one vehicle such as a car or truck to be exempt from property taxes.

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

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.

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

Specific services offered to assist you in your property tax planning include:

Preparation of business personal property renditions

Preparation and presentation of property protest

Preparation and representation in binding arbitration

Analysis of client’s business and training internal staff to prepare renditions

Analysis and training client to present protests to Appraisal Review Board

Assistance in selection of arbitrator in binding arbitration hearings

Analysis of property tax issues in property acquisitions or purchases

Preparation of Schedule of Real Property Purchase Price Allocation on properties purchased

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

Best wishes on property tax planning!

Sincerely,

Steve M. Spencer, CPA