A Tenant's Guide to Protesting Property Taxes in Texas TX

Did you know that in Texas, you don't have to be a property owner to protest a high property tax appraisal? Many renters, especially those in commercial properties, have the right to challenge the valuation of the property they lease. This guide explains if you are eligible and how the process works.

Can a Tenant Really Protest Property Taxes?

Yes, but only under one specific condition. According to the Texas Property Tax Code, a tenant has the right to protest a property's appraised value if their lease agreement contractually requires them to pay all or part of the property taxes.

This is most common in commercial "triple net" (NNN) leases, where the tenant is responsible for property taxes, insurance, and maintenance. However, any lease—commercial or residential—that explicitly makes the tenant responsible for paying the tax bill grants that tenant the right to protest.

For the purpose of the protest, the law considers you (the tenant) to be the property owner's authorized agent.

The Step-by-Step Process for a Tenant Protest

If your lease qualifies you to protest, follow these steps to challenge the property's appraised value:

  1. Review Your Lease Agreement: This is the most important step. Locate the specific clause in your lease that states you are responsible for paying the property taxes. You will need this as proof of your standing to file a protest.
  2. Obtain the Notice of Appraised Value: The appraisal district mails the annual Notice of Appraised Value directly to the property owner. You will need to get a copy of this notice from your landlord. It contains key information, including the property's account number, appraised value, and the protest deadline.
  3. File the Notice of Protest Form: You must file a protest form with your county's Appraisal Review Board (ARB) before the deadline (usually May 15).
    • CRITICAL: You must file the protest in the property owner's name, not your own.
    • When you sign the form, you will do so as the owner's "Agent."
  4. Gather Your Evidence: Prepare your case to prove that the property's appraised value is too high. Evidence can include information on the sales of comparable properties (comps), photos of the property's condition needing repairs, or income and expense statements for commercial properties.
  5. Attend the ARB Hearing: You will present your evidence to the Appraisal Review Board. Be prepared to explain why you believe the appraised value is incorrect. The property owner also has the right to attend this hearing.

Important Reminders

  • Communicate with Your Landlord: It is a good practice to inform your landlord that you are filing a protest on their behalf. Good communication can prevent confusion.
  • The Owner is Still Responsible: Even if you handle the protest, the property owner is ultimately responsible for ensuring the tax bill is paid to the county.

Disclaimer: This information is for educational purposes and is not a substitute for legal advice. Consult with an attorney or property tax consultant to discuss your specific situation.