Covid-19 and Property Taxes

With the number of cases ramping up in major Texas cities, county appraisal districts and the Texas Comptroller are beginning to consider options to ease the burden on small businesses and property owners. In addition to local measures, the federal CARES Act should help many small businesses. Although we anticipate the 2020 property tax calendar to be affected by “social-distancing” measures, most districts have delayed their decisions until more information is available regarding COVID-19.

Texas Comptroller Allows Business Owners to Defer Some State Taxes

Although the Texas Comptroller’s office has been silent regarding postponements to property tax payments or the protest calendar, it recently announced it would work with businesses struggling to pay state sales and occupancy taxes. The extent to which the Comptroller is willing to postpone these tax payments is uncertain.  Conversations with the Comptroller indicate that they are often willing to postpone payment of state taxes for up to 90 days if the taxpayer makes an initial down payment of 25% of the amount due. The Comptroller is willing to waive interest and penalties if the full tax is paid before the end of the postponement period. We do not anticipate this to affect the payment deadlines for property tax but will continue to monitor the situation.

Harris County Appraisal District’s Guidelines

With COVID-19 expected to linger, county appraisal districts have started taking action to minimize face-to-face encounters during the property tax season. In an update on March 30, Harris County Appraisal District stated that it did not expect face-to-face protest hearings to occur until late May, at the earliest. They further reiterated their goal to accomplish as much as possible without any face-to-face communications. Harris CAD’s guidelines (along with similar guidelines from Dallas CAD, Denton CAD, and other appraisal districts) indicate that the 2020 protest season may include limited interaction at the formal and informal appeal levels. Obtaining qualified and established representation of properties will be critical to navigate of this year's protest landscape.

Selected Appraisal District Responses (as of April 1, 2020)

• General:  most appraisal districts have closed their doors complying with local "Stay at Home" orders and currently do not expect to reopen until April 6. Most districts are considering a postponement of hearings until at least mid-May and likely after that as well. All appraisal districts are encouraging informal meetings with appraisers by phone or email to limit social interaction, while still completing cases.

• Bexar County:  1) has postponed the mailing of Appraisal Notices to April 18 instead of April 1; and 2) is seeking to freeze all property values from 2019 (by not sending out Appraisal Notices), which would wipe out an otherwise expected 7-8% increase in values and revenue for taxing jurisdictions in Bexar County.  Read more here.

• Collin County: 1) has extended their suspended activities beyond the initial March 31, 2020 deadline; 2) has extended the deadline to file a business personal property rendition to May 15, 2020; and 3) has extended the deadline to file for Open-Space Agricultural Appraisal Application to June 1, 2020.

• Dallas County:  1) has suspended activities until at least April 3, 2020 at which time they will reevaluate; 2) has extended the deadline to file a business personal property rendition to May 15, 2020; 3) has extended the deadline to file a Freeport Exemption Application to June 15, 2020; and 4) has temporarily suspended all in-person meetings.

• Denton County: 1) has suspended activities and have closed the office to the public until at least June 1, 2020 at which time they will reevaluate and 2) has postponed the mailing of Appraisal Notices to the last week of April effectively moving the protest deadline to the last week of May.

• Harris County:  1) has provided a drop-off location at Harris CAD's office to any filings or documents that need to be sent to the appraisal district; and 2) has extended the business personal property rendition deadline to May 15, 2020, and 3) has stated that formal hearings will not begin until the end of May at the earliest.

• Tarrant County:  1) has postponed the mailing of Appraisal Notices to after April 1, 2020; and 2) has postponed all March and April hearings to a later date.

• Travis County:  1) has provided a drop-off location at Travis CAD's office to any filings or documents that need to be sent to the Appraisal District; and 2) has extended the business personal property rendition deadline to May 15, 2020.

For more information, feel free to contact Josh Estes (214.272.8027), Niral Gandhi (214.272.8029), or Spencer Banks (214.272.8026) at Estes & Gandhi, P.C.