Skip to content
Quick Start for:
Title 1. Property Tax Code
Subtitle F. Remedies

Chapter 41. Local Review

Subchapter A. Review of Appraisal Records by Appraisal Review Board

Sec. 41.01. Duties of Appraisal Review Board.
Sec. 41.02. Action by Board.
Sec. 41.03. Challenge by Taxing Unit.
Sec. 41.04. Challenge Petition.
Sec. 41.05. Hearing On Challenge.
Sec. 41.06. Notice of Challenge Hearing.
Sec. 41.07. Determination of Challenge.
Sec. 41.08. Correction of Records on Order of Board.
Sec. 41.09. Clerical Errors.
Sec. 41.10. Correction of Records on Recommendation of Chief Appraiser.
Sec. 41.11. Notice to Property Owner of Change in Records.
Sec. 41.12. Approval of Appraisal Records by Board.

[Sections 41.13 to 41.20 reserved for expansion]

Sec. 41.01. Duties of Appraisal Review Board.

(a) The appraisal review board shall:

(1) determine protests initiated by property owners;

(2) determine challenges initiated by taxing units;

(3) correct clerical errors in the appraisal records and the appraisal rolls;

(4) act on motions to correct appraisal rolls under Section 25.25;

(5) determine whether an exemption or a partial exemption is improperly granted and whether land is improperly granted appraisal as provided by Subchapter C, D, E, or H, Chapter 23; and

(6) take any other action or make any other determination that this title specifically authorizes or requires.

(b) The board may not review or reject an agreement between a property owner or the owner's agent and the chief appraiser under Section 1.111(e).

Amended by 1981 Tex. Laws (1st C.S.), p. 169, ch. 13, Sec. 133; amended by 1993 Tex. Laws, p. 4444, ch 1031, Sec. 5; amended by 1997 Tex. Laws, p. 3915, ch. 1039, Sec. 37; amended by 1999 Tex. Laws, p. 3196, ch. 631, Sec. 9.

Cross References:

Appraisal review board members, see ch. 6, subch. C.
Equality and uniformity, see art. VIII, Sec. 1, Tex. Const.
Single board of equalization, see art. VIII, Sec. 18, Tex. Const.
Exemptions generally, see ch. 11.
Form and content of appraisal records, see Sec. 25.02.
Productivity appraisal, see ch. 23, subchs. C, D, E, & H.

Sec. 41.02. Action by Board.

After making a determination or decision under Section 41.01, the appraisal review board shall by written order direct the chief appraiser to correct or change the appraisal records or the appraisal roll to conform the appraisal records or the appraisal roll to the board's determination or decision.

Amended by 1993 Tex. Laws, p. 4444, ch. 1031, Sec. 6.

Cross References:

Notice of change in appraisal records, see Sec. 41.11.
Correction of records on board order, see Sec. 41.08.
Correction of clerical errors, see Secs. 25.25 & 41.09.
Correction on recommendation of chief appraiser, see Sec. 41.10.

Sec. 41.03. Challenge by Taxing Unit.

(a) A taxing unit is entitled to challenge before the appraisal review board:

(1) the level of appraisals of any category of property in the district or in any territory in the district, but not the appraised value of a single taxpayer's property;

(2) an exclusion of property from the appraisal records;

(3) a grant in whole or in part of a partial exemption;

(4) a determination that land qualifies for appraisal as provided by Subchapter C, D, E, or H, Chapter 23; or

(5) failure to identify the taxing unit as one in which a particular property is taxable.

(b) If a taxing unit challenges a determination that land qualifies for appraisal under Subchapter H, Chapter 23, on the ground that the land is not located in an aesthetic management zone, critical wildlife habitat zone, or streamside management zone, the taxing unit must first seek a determination letter from the director of the Texas Forest Service. The appraisal review board shall accept the letter as conclusive proof of the type, size, and location of the zone.

Amended by 1981 Tex. Laws (1st C.S.), p. 169, ch. 13, Sec. 134; amended by 1999 Tex. Laws, p. 3196, ch. 631, Sec. 10.

Cross References:

Median level of appraisal, see Sec. 1.12.
Exclusion from appraisal records, see chs. 11 & 21.
Situs within taxing unit, see Secs. 21.01 & 21.02.
Partial exemptions, see Secs. 11.13, 11.22, 11.24, 11.27 & 11.28.
Productivity appraisal, see ch. 23, subchs. C, D, E, & H.

Notes:

The chief appraiser's duty to back access property omitted from the appraisal roll whenever an error is discovered is mandatory and not discretionary. A taxing unit may sue the chief appraiser who fails to perform this duty. Back assessment for an erroneously granted exemption is a current year tax, and it is not subject to a taxing unit filing a challenge in the tax year in question. Atascosa County v. Atascosa County Appraisal District, 990 S.W.2d 255 (Tex. 1999).

An appraisal review board failed to give a taxpayer notice of a value increase resulting from a taxing unit challenge. Proper notice of an increased appraised value is a jurisdictional requirement that may be considered for the first time on appeal. The value increase was set aside due to the failure of notice to the taxpayer. However, the taxpayer's assertion that it should have been notified of the taxing unit challenge hearing was rejected. Lamar County Appraisal District v. Campbell Soup Co., 93 S.W.3d 642 (Tex. App.-Texarkana 2002, no pet.).

A metes and bound description is only a two dimensional designation that does not apply to sub-surface estates. Severed mineral estates are regarded as separately owned and separately taxed in Texas. Appraisal review boards were not established to deal with questions of pure law. A taxing unit may take direct action in district court, rather than a challenge to the appraisal review board. Glasscock Underground Water Conservation District v. Pruitt, 915 S.W.2d 577 (Tex. App.-El Paso 1996).

Only a taxing unit may challenge the grant of an exemption before the ARB. An individual taxpayer has no standing to challenge the grant of an exemption on another taxpayer's property. Scott v. Harris Methodist HEB, 871 S.W.2d 548 (Tex. App.-Fort Worth 1994, no writ history).

A taxing unit may not challenge the appraised value of a single taxpayer's property. Decisions of boards vested with authority to determine matters cannot be collaterally attacked in another proceeding. Carr v. Bell Savings & Loan, 786 S.W.2d 761 (Tex. App.-Texarkana 1990, writ denied).

Sec. 41.04. Challenge Petition.

The appraisal review board is not required to hear or determine a challenge unless the taxing unit initiating the challenge files a petition with the board before June 1 or within 15 days after the date that the appraisal records are submitted to the appraisal review board, whichever is later. The petition must include an explanation of the grounds for the challenge.

Amended by 1981 Tex. Laws (1st C.S.), p. 169, ch. 13, Sec. 134.

Cross References:

Submission of appraisal records, see Sec. 25.22.
Access to appraisal records, see Sec. 25.20.

Notes:

The chief appraiser's duty to back access property omitted from the appraisal roll whenever an error is discovered is mandatory and not discretionary. A taxing unit may sue the chief appraiser who fails to perform this duty. Back assessment for an erroneously granted exemption is a current year tax, and it is not subject to a taxing unit filing a challenge in the tax year in question. Atascosa County v. Atascosa County Appraisal District, 990 S.W.2d 255 (Tex. 1999).

An appraisal review board failed to give a taxpayer notice of a value increase resulting from a taxing unit challenge. Proper notice of an increased appraised value is a jurisdictional requirement that may be considered for the first time on appeal. The value increase was set aside due to the failure of notice to the taxpayer. However, the taxpayer's assertion that it should have been notified of the taxing unit challenge hearing was rejected. Lamar County Appraisal District v. Campbell Soup Co., 93 S.W.3d 642 (Tex. App.-Texarkana 2002, no pet.).

Sec. 41.05. Hearing on Challenge.

(a) On the filing of a challenge petition, the appraisal review board shall schedule a hearing on the challenge.

(b) The taxing unit initiating the challenge and each taxing unit in which property involved in the challenge is or may be taxable are entitled to an opportunity to appear to offer evidence or argument.

(c) The chief appraiser shall appear at each hearing to represent the appraisal office.

(d) If the challenge relates to a taxable leasehold or other possessory interest in real property that is owned by this state or a political subdivision of this state, the attorney general or a representative of the state agency that owns the real property, if the real property is owned by this state, or a person designated by the political subdivision that owns the real property, as applicable, is entitled to appear at the hearing and offer evidence and argument.

Amended by 1999 Tex. Laws, p. 2751, ch. 416, Sec. 1.

Cross References:

Notice of challenge hearing, see Sec. 41.06.
Hearing procedures generally, see Secs. 41.61 - 41.69.

Sec. 41.06. Notice of Challenge Hearing.

(a) The secretary of the appraisal review board shall deliver to the presiding officer of the governing body of each taxing unit entitled to appear at a challenge hearing written notice of the date, time, and place fixed for the hearing. The secretary shall deliver the notice not later than the 10th day before the date of the hearing.

(b) The secretary shall give the chief appraiser advance notice of the date, time, place, and subject matter of each challenge hearing.

(c) If the challenge relates to a taxable leasehold or other possessory interest in real property that is owned by this state or a political subdivision of this state, the secretary shall deliver notice of the hearing as provided by Subsection (a) to:

(1) the attorney general and the state agency that owns the real property, in the case of real property owned by this state; or

(2) the governing body of the political subdivision, in the case of real property owned by a political subdivision.

Amended by 1999 Tex. Laws, p. 2751, ch. 416, Sec. 2.

Cross References:

Delivery of notice, see Sec. 1.07.

Sec. 41.07. Determination of Challenge.

(a) The appraisal review board shall determine each challenge and make its decision by written order.

(b) If on determining a challenge the board finds that the appraisal records are incorrect in some respect raised by the challenge, the board shall refer the matter to the appraisal office and by its order shall direct the chief appraiser to make the reappraisals or corrections in the records that are necessary to conform the records to the requirements of law.

(c) The board shall determine all challenges before approval of the appraisal records as provided by Section 41.12 of this code.

(d) The board shall deliver by certified mail a notice of the issuance of the order and a copy of the order to the taxing unit.

Amended by 1981 Tex. Laws (1st C.S.), p. 170, ch. 13, Sec. 135.

Cross References:

Correction orders, see Sec. 41.08.
Notice to taxpayer of change in records, see Sec. 41.11.
Right of appeal by taxing unit, see Sec. 42.031.

Sec. 41.08. Correction of Records on Order of Board.

The chief appraiser shall make the reappraisals or other corrections of the appraisal records ordered by the appraisal review board as provided by this subchapter. The chief appraiser shall submit a copy of the corrected records to the board for its approval as promptly as practicable.

Cross References:

Approval of appraisal roll, see Sec. 25.24.

Sec. 41.09. Clerical Errors.

At any time before approval of the appraisal records as provided by Section 41.12 of this code, the appraisal review board in writing may correct a clerical error in the records without referring the matter to the appraisal office if the correction will not affect the tax liability of a property owner and if the chief appraiser does not object in writing.

Cross References:

Correction of clerical or substantial error in appraisal roll, see Sec. 25.25.

Sec. 41.10. Correction of Records on Recommendation of Chief Appraiser.

At any time before approval of the appraisal records as provided by Section 41.12 of this code, the chief appraiser may submit written recommendations to the appraisal review board for corrections in the records. If the board approves a recommended correction and it will not result in an increase in the tax liability of a property owner, the board may make the correction by written order.

Cross References:

Correction of approved appraisal roll, see Sec. 25.25.
Correction that increases tax liability, see Sec. 41.11.

Sec. 41.11. Notice to Property Owner of Change in Records.

(a) Not later than the date the appraisal review board approves the appraisal records as provided by Section 41.12, the secretary of the board shall deliver written notice to a property owner of any change in the records that is ordered by the board as provided by this subchapter and that will result in an increase in the tax liability of the property owner. An owner who receives a notice as provided by this section shall be entitled to protest such action as provided by Section 41.44(a)(2).

(b) The secretary shall include in the notice a brief explanation of the procedure for protesting the change.

(c) Failure to deliver notice to a property owner as required by this section nullifies the change in the records to the extent the change is applicable to that property owner.

Amended by 1997 Tex. Laws., p. 2857, ch. 906, Sec. 13.

Cross References:

Protest procedures generally, see ch. 41, subch. C.
Presumption of delivery, see Sec. 1.07.

Notes:

Failure of prior property owners to assert lack of notice precludes subsequent owners from challenging the validity of past appraisals. Failure to deliver timely notices nullifies changes in appraisal rolls only with regard to the property owner at the time. Although the Tax Code authorizes notices of appeal by a "party other than a property owner," the parties contemplated are the chief appraiser and other governmental entities. The tax payment requirement of Section 42.08 was upheld as a requirement to maintain an appeal. Houston Land & Cattle Co. v. Harris County Appraisal District, 104 S.W.3d 622 (Tex. App.-Houston [1st Dist.] 2003, pet. denied).

An appraisal review board failed to give a taxpayer notice of a value increase resulting from a taxing unit challenge. Proper notice of an increased appraised value is a jurisdictional requirement that may be considered for the first time on appeal. The value increase was set aside due to the failure of notice to the taxpayer. However, the taxpayer's assertion that it should have been notified of the taxing unit challenge hearing was rejected. Lamar County Appraisal District v. Campbell Soup Co., 93 S.W.3d 642 (Tex. App.-Texarkana 2002, no pet.).

Sec. 41.12. Approval of Appraisal Records by Board.

(a) By July 20, the appraisal review board shall:

(1) hear and determine all or substantially all timely filed protests;

(2) determine all timely filed challenges;

(3) submit a list of its approved changes in the records to the chief appraiser; and

(4) approve the records.

(b) The appraisal review board must complete substantially all timely filed protests before approving the appraisal records and may not approve the records if the sum of the appraised values, as determined by the chief appraiser, of all properties on which a protest has been filed but not determined is more than five percent of the total appraised value of all other taxable properties.

Amended by 1981 Tex. Laws (1st C.S.), p. 170, ch. 13, Sec. 136; amended by 1985 Tex. Laws, p. 2497, ch. 312, Sec. 1; amended by 1993 Tex. Laws, p. 4444, ch. 1031, Secs. 7 and 8.

Cross References:

Supplemental records, see Sec. 25.23.
Approval of records for unfinished protests creates appraisal roll, see Sec. 25.24.
Suit to compel compliance with deadline, see Sec. 43.04.
Listing of property under protest, see Sec. 26.01(c).

Notes:

The taxpayer failed to exhaust its administrative remedies by not raising the issue of an application filing extension before the review board and evidence was not presented to establish entitlement to relief under Section 11.439 (now Section 11.4391) because no date of appraisal roll approval was offered. As a result, the Court did not address the retroactive application of the law. The application filed after the April 30 deadline in effect in 1999 barred the granting of the freeport exemption for that year. The taxpayer failed to file timely a freeport exemption application and did not request a filing extension for good cause as required in 1999. At trial, the taxpayer claimed that the appraisal district failed to treat the transmittal letter with the application as a request for extension. The taxpayer further contended that the amendment to the application requirements by Section 11.439 (effective in 2000 and renumbered in 2003 to Section 11.4391), permitting acceptance of late applications if filed before approval of appraisal records by the appraisal review board, should apply. Quorum International v. Tarrant Appraisal District, 114 S.W.3d 568 (Tex. App.-Fort Worth 2003, pet. denied).

[Sections 41.13 to 41.20 reserved for expansion]