Litigation & Arbitration - The Next Steps
Litigation (filing a lawsuit) or Binding Arbitration are the next steps in the appeal process after the ARB Hearing.
Litigation is the choice for properties whose appraised value is over $1,000,000, and whose true value is significantly below the value set by the ARB. As a general rule, a reduction of $200,000 or greater in appraised value is required to make a lawsuit economically worthwhile.
We have had excellent success in assisting our clients with the litigation process and obtaining significant reductions in appraised values and taxes. An overview of our experience follows.
Arbitration is available for Real Property (Residential or Commercial, but not BPP) whose appraised value is under $1,000,000.
Litigation Results
|
Year |
Lawsuits
Filed |
Total
Original Value |
Total
Reduced Value |
Average
Reduction in Value |
Average
1st Year Tax Savings |
Average
% Reduction |
|
2004 |
40 |
$92,000,000 |
$76,000,000 |
$340,000 |
$7,700 |
15% |
|
2005 |
39 |
$99,000,000 |
$88,000,000 |
$287,000 |
$7,300 |
9% |
|
2006
YTD |
42
filed 9 Settled |
$21,000,000
to date |
$18,000,000
to date |
$251,000
to date |
$7,800
to date |
11%
to date |
Litigation is still underway for the majority of the lawsuits filed for tax year 2006. Some additional lawsuits from prior tax years (2004, 2005) are also still in progress.
