taxes Property Tax Assistance

Limited Binding Arbitration

ONLINE PROPERTY TAX ARBITRATION SYSTEM - NOW AVAILABLE
Visit texas.gov/propertytaxarbitration for more information and to file for arbitration.

All agents and property owners represented by agents must file and pay the deposit using the online system.

Tax Code Section 41A.015 gives property owners meeting certain criteria the option to request limited binding arbitration (LBA) to compel the appraisal review board (ARB) or the chief appraiser, as appropriate, to:

  • comply with the hearing procedures adopted by the appraisal review board under Tax Code Section 41.01(c);
  • rescind procedural rules adopted by the ARB that are not in compliance with the model hearing procedures prepared by the Comptroller;
  • schedule a hearing on a protest as required by law;
  • deliver a copy of the Taxpayer Remedies publication, the ARB hearing procedures or information on a property owner's right to request evidence the chief appraiser will introduce at the ARB hearing at least 14 days before the scheduled hearing;
  • allow the property owner to offer evidence, examine or cross-examine witnesses or other parties, and present arguments;
  • set a hearing for a time and date certain and postpone a hearing that does not begin within two hours of the scheduled time;
  • schedule hearings on protests concerning multiple properties identified in the same notice of protest on the same day at the request of the property owner or the property owner’s designated agent; or
  • refrain from using or offering as evidence information requested by the property owner that was not delivered to the property owner at least 14 days before the hearing.

The Comptroller's office is responsible for maintaining the Arbitrator Registry, processing requests, remitting payment to the arbitrator when appropriate and refunding any portion of the property owner's deposit (PDF) as applicable, but is prohibited from giving advice or direction on a matter relating to a pending arbitration.

Property owners are encouraged to read and be familiar with Tax Code Chapter 41A and Comptroller Rules relating to LBA.

Qualification Prior to Filing

A property owner may not request LBA unless:

  • The property owner has filed a notice of protest on the property for the tax year.
  • The property owner has delivered written notice to the chairman of the ARB, the chief appraiser, and the taxpayer liaison officer for the applicable appraisal district of the procedural requirement with which the property owner alleges the ARB or chief appraiser failed to comply on or before the fifth business day after the date the ARB or chief appraiser was required to comply with the requirement. This notice must be sent by certified mail, return receipt requested.
  • The chairman of the ARB or chief appraiser, as applicable, fails to deliver to the property owner on or before the 10th day after the date the notice is delivered a written statement confirming that the ARB or chief appraiser will comply with the requirement or cure a failure to comply with the requirement.
Filing Process

Not earlier than 11 days or later than 30 days after the date the property owner delivers the required notice described above, a property owner must file the request for LBA and the required deposit either by paper or in the online system. A property owner may file a single LBA request that covers more than one property, more than one protest hearing or more than one procedural violation. The deposit amount is computed based on the single property that would have required the largest deposit filed separately.

Online Filing

All agents and property owners represented by agents must file and pay the deposit by credit card or ACH transfer using the online system.

Paper Filing

Property owners who are not represented by agents and who do not wish to file and pay the deposit online, may file Form AP-241, Request for Limited Binding Arbitration (PDF) together with the required deposit, by check or money order made payable to the Texas Comptroller of Public Accounts, with the Comptroller’s office at the following address:

Texas Comptroller of Public Accounts
Attention: Arbitration
111 E. 17th Street, 4th Floor
Austin, Texas 78774
Arbitrator Appointment and Hearing

Once the arbitration has been processed, the Comptroller's office will appoint an arbitrator to hear the dispute. Only arbitrators who are licensed attorneys may be appointed to LBA cases.

The arbitrator is responsible for working with the parties to set the date, time and location of the hearing.

More information about arbitrator qualification, the assignment process and the scheduling of hearings can be found on the Arbitrator Registry and Duties webpage.

At the conclusion of the hearing the arbitrator must determine if the ARB or chief appraiser failed to comply with one or more of the procedural requirements indicated in the request. If the arbitrator determines the ARB or chief appraiser failed to comply, the ARB or chief appraiser must comply with the requirement or, if a hearing has already been held and determined on the protest, the ARB must rescind the ARB order and hold a new hearing that complies with the procedural requirement.

If an arbitrator determines the ARB or chief appraiser failed to comply with one or more procedural requirements indicated in the LBA request, the property owner's deposit will be refunded, minus a $50 administrative fee retained by the Comptroller's office and the appraisal district will pay the arbitrator's fee as indicated on the determination form. If an arbitrator determines the ARB or chief appraiser complied with the procedural requirements indicated in the LBA request, the property owner's deposit will be used to pay the arbitrator's fee as indicated on the determination form.

Dismissal

Arbitrators are required by law to dismiss all LBA requests they determine do not meet the requirements of the law. In the event that a case is dismissed, other than when there are delinquent taxes on the property, the arbitrator may charge up to the total allowable fee and the property owner may not receive a refund of their deposit. LBA requests are required to be dismissed for the following reasons:

  • The owner or agent did not file a notice of protest under Chapter 41.
  • Except as allowed by Tax Code Section 41A.10, taxes on the subject property are delinquent because, for any prior year, all property taxes due have not been paid or because, for the tax year at issue, the undisputed tax amount was not paid before the delinquency date. Taxes under a current deferral agreement are not considered to be delinquent for purposes of filing for arbitration.
  • The owner or agent has not delivered written notice to the ARB chair, the chief appraiser and the taxpayer liaison officer as required by Tax Code Section 41A.015(b)(1).
  • The owner filed the LBA request earlier than the 11th day or later than the 30th day from the date notice of the alleged violation was delivered to the ARB chair, the chief appraiser and the taxpayer liaison.
  • The ARB or chief appraiser delivered a written statement to the owner by the deadline pursuant to Tax Code Section 41A.015(b)(2).
  • Litigation was filed before the LBA request was submitted that involves the same issues for the same properties in the same tax year as addressed in the LBA request.
  • The request does not involve a matter described in Tax Code Section 41A.015(a)(1)-(7).
  • The property owner or the property owner's agent and the apprasial district have executed a written agreement resolving the matter.
  • The request was not filed by a property owner or authorized individual, or was filed by an agent without proper authority.
Rules

Division 1 – General Rules

Division 2 – Limited Binding Arbitration for Procedural Violations