Suggestions for Protesting Property Tax on Recently Purchased Investment

[Kelly Stanton]

We purchased a significantly distressed rental property in Austin October of 2023 and were hit with a huge (3x) property tax bill at the end of the year. The previous owner had an "over 65" exemption. We submitted a protest with TCAD in January of 2024, but it was denied because it was "late." We were told that we needed to submit the protest in May of 2023, but we didn't even own the house then... Does anyone have any suggestions? This seems a little outrages. 

[Joe Scaparra]

@Kelly Stanton, you have given more info than your original post.

Yes you can get your taxes lowered at least for one year.  Protest your taxes this year.  Have your closing statement showing what you paid for the house.  You probably won't need pictures to justify your cost but have them just in case.  

Don't be over zealous and tell them all the improvements you have done.  Your taxes this year is based on the property 31 December 2023.  But since you were past the deadline for protesting they should give you the valuation that you purchased the property.  Usually without any hesitation.

However, be ready for the valuation to jump back up the following year as you will have to prove next year that the house is not worth what they will adjust the property value.  Their software does NOT look at your individual house but they price it by the subdivision/street and adjust for various items, like square footage, permitted improvements ect.  If it is not homesteaded it can jump up as much as they like.  If you have it homesteaded they cannot jump your property up more than 10% from previous year.  Good luck.