Rising property values and the petition process

  • In May, the LCCAD sent more than 18,000 notices to property owners to indicate that their property’s proposed appraised value increased by $1,000 or more. Courtesy Photo.
    In May, the LCCAD sent more than 18,000 notices to property owners to indicate that their property’s proposed appraised value increased by $1,000 or more. Courtesy Photo.

     

    More than 18,000 real property owners received a letter from the Lavaca County Central Appraisal District (LCCAD) in May indicating that the proposed appraised value of their property increased by at least $1,000.

     

    While many major media sources report that the inflation rate for the U.S dollar has recently climbed drastically, LCCAD Chief Appraiser Pamela Lathrop explained that this has a limited impact on increased taxable property values for locals.

     

    Lathrop said that the assessed value reflects the amount the property would sell for on the real estate market. Concerning property values, the direct impact of inflation is most closely related to new structures or improvements that are affected by general price increases.

     

    “People are (paying) a lot for properties. Of all the years that I’ve been in the industry, I’ve never seen this…” Lathrop said. “The only correlation (between real estate market values rising and inflation is) any time you build a new structure, you’re going to feel the impact of inflation because of the cost of materials.”

     

    The proposed appraised value calculated through a mass appraisal process uses several variables, including the sale price of similar properties, ratio studies, distance from flood zones, age of improvements, etc.

     

    Because of exemptions that many property owners may qualify for, the proposed appraised value is often a different figure than a property's taxable value. Many exemptions can decrease the amount due for property taxes – information on several exemptions and accompanying qualifications are available at lavacacad.com.

     

    One common exemption is the General Homestead Exemption, which limits the amount that taxable value increases annually to 10% on primary homesteads for Texas property owners.

     

    While several qualifications are required for the general homestead exemption, many property owners qualify as eligible. The Chief Appraiser said that staff at the appraisal district would happily assist property owners with the application. 

     

    Those who are not satisfied with the appraised value of their property can mail or deliver a protest to the LCCAD at 908 Glendale St. by June 22. For 2021, there were about 1,025 mineral value protests and 545 for real property, Lathrop said.

     

    Once a protest is filed, an appraiser will contact the property owners to discuss why they believe their property would sell for less than the proposed value.

     

    The property owner could then send pictures or estimates to the appraiser that support their claim. Because the appraisers assess properties from a distance and not from inside structures, valuable evidence to prove that the property would sell for less than the proposed value would display flood damage, termite damage, etc.

     

    Suppose the appraiser concurs that the evidence confirms the proposed value is more than the property's market value. In that case, the two parties could agree on a reasonable adjustment to reach a settlement waiver at that value.

     

    If the appraiser does not think the evidence is sufficient, the petition could go to an Appraisal Review Board (ARB) hearing, where the LCCAD and property owner would present their cases to the board. 

     

    The ARB is designed to be a neutral committee unfamiliar with the petitions before the scheduled hearings. The LCCAD would email the evidence they plan to use to the property owner about two weeks in advance, said Lathrop.

     

    After the board decides the case, a copy of its order is sent to the property owner. If they are still unsatisfied with the value, the property owner has 60 days to file a petition to go to court or 45 days to file for arbitration.

     

    Although the property tax appraisal process may be intimidating to property owners unfamiliar with its intricacies, Lathrop said that the staff at the LCCAD will happily answer questions to simplify the procedures.

     

    For more information, call the LCCAD at 361-798-4396 or visit their website at lavacacad.com. The appraisal district’s office is open from 8 a.m until 5 p.m. at 908 Glendale St. in Hallettsville.