The Texas property tax system is a mess, Watchdog columnist Dave Lieber says. Here he shows the basics of what to do when the appraisal notice on blue paper arrives in the mail.( Staff photo by VERNON BRYANT – DMN )

The first thing to do when you get your “2024 Property Value Notice” on blue-colored paper from your county appraisal district is grab a blank sheet and do two very important calculations.

Find the appraised value of your house for 2024. Some counties might call it assessed value or capped value.

Then find the 2024 market value on the same blue sheet.

Then find those two numbers from last year. In some counties, it’s not easy. The numbers are listed with lots of other numbers that can be confusing.

Now subtract last year’s 2023 numbers from this year’s 2024 numbers.

The results are your increase.

Then figure out what the percentage difference is in this one year. Use a calculator or an online calculator.

I’ll make a safe prediction that for most folks the appraised value will go up exactly 10% because that’s the highest allowed under state law.

As for the percentage increase of the market value, better sit down for that one. There’s no limit on market value increases so it’s a giant free for all. It’s the estimated value as of the previous Jan. 1.

That market value increase is what you protest in an appraisal hearing.

But here’s something new we’re just learning about: If you own a second property that was unprotected by a homestead exemption like your primary residence is, there is for the first time a 20% cap on an increase on that appraisal. The increase can’t be greater than 20% in one year.

If you didn’t get a blue notice in the mail, that means your appraised value went up less than $1,000. Congratulations! They don’t have to send you a notice. But you can still find your account online and see your numbers. And you still can protest your market value. Warning: If you don’t get a blue notice, it’s a bit tricky getting your online PIN. You could contact the appraisal district and check their website. Usually, they have to mail a letter with your PIN to your address. Don’t dawdle.

Everybody file?

Now that you have your basic numbers, you can decide if you want to protest.

In the past, I ran a multiyear campaign called “Everybody file a protest.” It introduced thousands of homeowners to possible strategies. Over the years, many people (I call them citizens of my Watchdog Nation) have told me how they used my information to save thousands of dollars in property taxes. (I recommend you put part of your savings into keeping your Dallas Morning News subscription alive.)

Now I’ll change the campaign to “Everybody under 65 should consider filing a protest.” Turning 65 years old and getting most of your tax rates frozen is one of the few benefits of growing old.

But, yeah, if you’re under 65, you should seriously consider a protest. Most importantly, don’t forget the deadline is May 15 (except in troubled Tarrant County where it’s May 24.) If you miss it and try to add it later, you’ll have no luck.

Ways to protest

The reason I despise the state property tax system is because the same house in one city could be taxed much higher in another. Lots of times, this even happens to houses on the same block.

There’s no standard. It all depends on the whims of the local tax appraiser or appraisal review board — and whether a homeowner protests.

Every county appraisal district has its own way of doing this. That’s why when people ask me questions about their situation, I can’t answer. Aside from the fact that I’m not a licensed property tax consultant, every county is different.

Some counties allow informal over-the-counter negotiations. Others require in-person hearings or allow video calls. Some cases never make it to hearings because both sides agree to a settlement. Appraisal districts don’t want lots of hearings.

One thing that’s constant: Don’t go into a hearing complaining about your high taxes. Use specific factual evidence instead. I’ll show you how below.

The first protest I ever won happened because I showed the appeal board my actual sales documents for my home purchase. Since my number was real and theirs was only a guess, they lowered it to my number.

The next protest I won was because I showed a neighbor with the exact same house as mine a few doors down paying less.

The next time I won because I asked a Realtor to print me a list of comparable home sales (called comps) because that was most likely what the appeal board would use. I tried to find nearby houses that sold for a lot less than the market value.

The next protest I won because I showed structural or update needs in my house that I would have to fix before selling my house. An estimate from a plumber showing I needed to spend $10,000 to make fixes and updates helped me lower my value. So what’s wrong with your house? Take photos and attach them to your packet.

Note: At hearing day, bring five packets for the board, the appraiser and you.

The next year, I hired the largest property tax protest company in the state. It was like a factory. They ran me through with hundreds of thousands of other clients.

I tried another local company where, again, they had so many customers there was no time for individual attention.

Then I hired a consultant who forgot about me. I filed a license complaint against him with the state. He was cleared.

Now I’m with another company. I haven’t decided what to cite in my protest, but it’s likely foundation, roofing and windows.

If I lose, I can go to binding arbitration, which I won one year when the appraisal district settled before our hearing. Yay! I could also file a civil lawsuit, but I’d have to hire a lawyer for that.

Check exemptions

Even if you lose, they are not allowed to raise your value. And your cost to do this is time, not money (unless you hire a property tax consultant).

Make sure you have a homestead exemption on your primary residence. That gives you a huge deduction. Same for over 65 and disabled exemptions, too, if you qualify.

The 2023 Texas legislature passed the largest property tax cut in state history. For most of us, our annual tax dropped, in some cases, by large amounts. That’s no reason to stop the fight to reduce.

Think ahead. If you knock a number down, it usually can lower the base for all future numbers.