Texas Property Tax Valuation Methodologies

[Don Henderson]

My business partner and I own two single family homes, a four-plex and two duplex units in Houston County, Texas (all rentals).  Recently, the appraisal district sent us notice letters on our four-plex and two duplexes stating that, "Apartment complexes now fall under income producing properties, so we must obtain some information from the property owner in order to be able to apply the income approach to value."  

As far as I am aware, all these properties have been valued under the Market Data (Sales) approach since the beginning of time.  I am generally of the opinion of not providing the appraisal district any voluntary information, but I wanted to reach out to see if anyone else has received similar letters and how the transition process worked out for them.  I can't imagine the appraisal district taking this route if they thought it would result in less property tax dollars being paid.

The four-plex is valued at $162,660 for tax purposes, and the two duplexes are valued at $67,200 and $68,050 respectively.

Thanks in advance.