How Do Large Repair Needs and Deferred Maintenance Factor Into My Appeals Case?

So, you’ve decided to appeal your property taxes. As you should! It’s estimated that 90% of property owners in Texas do not protest their taxes. Gill, Denson & Company tax consultant, Joe Gomberg, said, “The tax code is written so it pushes people away from appealing when most taxpayers throughout the state are probably paying too much.” If, like many Americans, you did some major repairs and improvements to your home the past year, you added value to your home which could increase your tax bill and affect your appeals case. On the other hand, if you put off doing some major repairs, this could knock off some of your home’s value. Either way, you will likely want to seek the help of a tax professional from Gill, Denson & Company. “We can help you identify things that will be helpful in your appeals case, maximize reductions and save you money,” said Gomberg. In the meantime, here’s a few things to keep in mind as you go through the appeals process: 

What Counts As Added Value

Major home improvements such as room additions, kitchen remodels or a new swimming pool will add value to your home. Simply painting a room or putting in new carpet will likely not.  

The Assessor’s Eye

It’s the assessor’s job to track the value of every piece of real estate in their assigned county. The County Appraisal District has many ways of detecting changes to home values including high tech mapping and databases of things like inspections and building permits. However, the CAD does mass evaluations of millions of homes, so there is still plenty of room for error. 

On Hold

If, for whatever reason, you deferred maintenance on fixing or replacing major components of your home such as roofing, electrical, plumbing, AC or structural, this can significantly decrease your home’s value. You will likely want to obtain a bid on all repairs/replacements so that your property tax consultant can use it as evidence in your tax appeal hearing. 

Documentation Is Key

Your appeals process will go much smoother if you take the time to document everything as you go. Gomberg suggests taking pictures of all bids, quotes and estimates related to the appeal. When you become a client of Gill, Denson & Companyyou will be asked for this information during the onboarding process. 

Watch Your Deadlines

It’s important to note that the effective date of the value of your appraisal is January 1. This is the date that all deferred maintenance and added value items are taken into account. In most cases, Texas property owners have until May 15, 2022 (or 30 days after the assessment notice has been mailed) to protest their taxes.  

If you’re a Texas property owner in need of assistance with your property taxes, reach out to the professionals at Gill, Denson & Company. Our professionals help you reduce your taxes by aggressively appealing your property tax appraisals.