Property Tax Protest Based on Location in County; Appraisal District May Not Assess Property Outside of Texas Entities is Serves

Section 41.42 – Protest of Situs

Business personal property is most likely to be affected by taxation by multiple appraisal districts. Examples could include drilling rigs and construction equipment used in various counties during the year. This section of the Texas Property Tax Code allows an owner to have a tax account removed if the property is on the tax rolls in a different county. Some owners have attempted to have property taxed in the county with the lowest tax rate.

This section also allows a property tax on the basis the property is not taxable in the state, such as intangible personal property not used for the production of income.

Sec. 41.42. Protest of Situs.

A protest against the inclusion of property on the appraisal records for an appraisal district on the ground that the property does not have taxable situs in that district shall be determined in favor of the protesting party if he establishes that the property is subject to appraisal by another district or that the property is not taxable in this state. The chief appraiser of a district in which the property owner prevails in a protest of situs shall notify the appraisal office of the district in which the property owner has established situs.

Acts 1979, 66th Leg., p. 2305, ch. 841, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 170, ch. 13, Sec. 137, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 5034, ch. 906, Sec. 1, eff. Jan. 1, 1984.

 

Cross References:
Situs of property, see Secs. 21.01, 21.02 & 21.021.
Jurisdiction to tax, see Secs. 11.01 & 11.02.

Note:
Fact that Texas law does not provide a single forum for deciding situs disputes where airplane was listed by two appraisal districts did not deny the property owner’s rights under the due process clause of the federal constitution or the open courts provision of the Texas constitution. Where taxpayer brought suit prior to exhausting remedies in either or both districts, court did not have jurisdiction to resolve the dispute. General Electric Credit Corporation v. Midland CAD, 808 SW 2d 169 (Tex.App.–El Paso, 1991, no writ).
These codes affect property owners across the state, in both larger and smaller counties including:

• Galveston County
• Waller County
• Denton County
• Dallas County
• Travis County
• Williamson County
• Bexar County
• Starr County
• Lamar County
• Bell County
• Hopkins County
• Nolan County
• Walker County
• Palo Pinto County
• Hunt County
• Moore County
• Madison County

The Texas Property Tax Code applies to all property types in Texas including:

• Hotel
• Airplane hangar
• Drugstore
• School
• Fast food restaurant
• Convenience store
• Bar
• Medical office
• Auto salvage yard
• Shopping center

O’Connor & Associates offers property tax services to all property owners of all land uses across Texas.

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