As of Jan. 1, 2006, the Texas Legislature authorized a new, less-expensive, option for taxpayers who are not satisfied with the decision rendered by the Appraisal Review Board called Binding Arbitration. Binding Arbitration is an alternative resolution process at a much lower costs for taxpayers; however, it is NOT a solution for all situations.
In order to request Binding Arbitration the following conditions apply:
1.The appraised or market value, as applicable, of the property as determined by the order is $1 million or less
2.The appeal does not involve any matter in dispute other than the determination of the appraised or market value of the property. In other words, an unequal valuation cannot be used as argument.
Once a decision regarding your appraisal is reached the agreement is binding, hence the term, and must be accepted by the appraisal district and the property owner. The decision is FINAL. For current and more detailed information about Binding Arbitration, see the State of Texas website – the link is provided on our Arbitration Information page.
UPDATE
Texas tax code has been updated to allow homesteads’ the ability to appeal even IF their value is over 1 million dollars.
SB 771 amends this section to allow binding arbitration for ARB orders determining a protest filed under Section 41.41(a) (1) [market or appraised value] on real and personal property valued at $1 million or less and to allow binding arbitration for all residence homesteads, including those valued at more than $1 million.
Effective Jan. 1, 2010
