SECTION 9.4252. Request for Arbitration

(a) An owner or agent may initiate an appeal of an ARB order determining a protest of property value through binding arbitration, using either the traditional paper-based arbitration system or the comptroller's online arbitration system, whichever is available and subject to §9.4255 of this title (relating to Comptroller Processing of Request, Online Arbitration System, and 45 Calendar-Day Settlement Period), under the terms and conditions of this section.

(b) The request for binding arbitration, a copy of the ARB order being appealed, and a deposit must be filed with the appraisal district or through the online arbitration system in compliance with Tax Code, §41A.03, which requires submission by not later than the 60th calendar day after the date the owner receives the ARB order determining the protest. Property owners and agents using the online arbitration system to make a request for binding arbitration are referred to as filers and are required to pay the arbitration deposit online at the time the request is made. As a property owner or agent filing a paper request or an online filer may be provided any refund of the arbitration deposit, one of the following identification numbers associated with the payment of the deposit is required to be provided to process any refund: Social Security Number (SSN), Texas Identification Number (TIN) issued by the comptroller's office, Federal Employer Identification Number (FEIN), or Individual Taxpayer Identification Number (ITIN) issued by the Internal Revenue Service to individuals not eligible to obtain an SSN. If the filer is an agent and wishes to submit an FEIN, only FEINs for sole proprietorships will be accepted. The request, ARB order being appealed, and deposit shall be submitted to the appraisal district by hand delivery, by certified first-class mail, or as provided by Tax Code, §1.08 or §1.085, or through the U.S. Postal Service or a private third-party service such as FedEx or United Parcel Service (UPS) so long as proof of delivery is provided, or by submission through use of the comptroller's online arbitration system if available.

(c) The request for arbitration must be completed on the comptroller's prescribed Request for Binding Arbitration (Form AP-219) or through the online arbitration system. The ARB shall provide a copy of Form AP-219 as well as a notice of the owner's right to binding arbitration when it sends to the owner the ARB's order determining a protest filed pursuant to Tax Code, §41.41(a)(1) or (2) if the value of the property determined by the order is $5 million or less or the property qualifies as the owner's residence homestead under Tax Code, §11.13.

(d) If an agent has been appointed to represent the owner, and the agent signs the Request for Binding Arbitration (Form AP-219) or initiates the request through the online arbitration system on behalf of the owner, the Appointment of Agent(s) for Binding Arbitration (Form 50-791), signed by the owner or authorized individual as required by §9.4253(c) of this title (relating to Agent Representation in Arbitration), must be properly completed and either scanned and uploaded to the online arbitration system or submitted with the request, Form AP-219.

(e) The property owner or agent must submit a copy of the ARB order being appealed by including it with the request for binding arbitration or by scanning and uploading it to the online arbitration system when filing the request.

(f) A request for binding arbitration on property that meets the following terms and conditions qualifies for binding arbitration under Tax Code, Chapter 41A:

(1) The request concerns the appraised or market value of $5 million or less for the property as determined by the ARB order, or the property qualifies as the owner's residence homestead under Tax Code, §11.13.

(2) The request does not involve any matter in dispute other than the determination of the appraised or market value of the property pursuant to a protest filed under Tax Code, §41.41(a)(1) for the appraised or market value or §41.41(a)(2) for unequal appraisal. Issues not subject to binding arbitration include a protest regarding the owner's motion for correction of an appraisal roll, a protest concerning the qualification of property for a tax exemption or special appraisal, or any other issue outside the scope of Tax Code, §41.41(a)(1) or (2).

(3) A deposit in the correct amount set forth under subsection (h) of this section, in the form of a check issued and guaranteed by a banking institution (such as a cashier's or teller's check) or by a money order, payable to the Comptroller of Public Accounts, is included with the request. If the online arbitration system is used to file the request, additional forms of acceptable payment are by credit card (with entry of the filer's credit card number and security code) with an additional processing fee or by electronic check (with entry of the filer's bank account number and bank routing number) with an additional processing fee. Personal checks, cash, or other forms of payment shall not be accepted.

(4) Taxes are not delinquent on the property at issue. For any prior year, all property taxes due have been paid. For the year at issue, the undisputed tax amount was paid before the delinquency date set by Tax Code, Chapter 31, as applicable.

(5) No lawsuit has been filed in district court regarding the property for the tax year at issue.

(6) The request for binding arbitration is timely filed pursuant to subsection (b) of this section.

(7) The request is made on the comptroller's paper Request for Binding Arbitration (Form AP-219) or through the online arbitration system, and is signed by the property owner or by the owner's agent, if authorized.

(8) In all cases in which an agent is initiating the request for binding arbitration, an original or paper copy of the Appointment of Agent(s) for Binding Arbitration (Form 50-791) that meets the requirements of §9.4253 of this title must be submitted with request Form AP-219 or scanned and uploaded to the online arbitration system when initiating the request for arbitration. The Form 50-791 must demonstrate that the property owner or authorized individual granted the agent initiating the request for binding arbitration the authority to do so on the owner's behalf.

(9) A copy of the ARB order being appealed was submitted with request Form AP-219 or scanned and uploaded to the online arbitration system when initiating the request for arbitration as required by subsection (e) of this section.

(g) If the request involves contiguous tracts of land pursuant to Tax Code, §41A.03(a-1), each tract of land and ARB order must separately meet the requirements of subsection (f) of this section, except that a single arbitration deposit in an amount under subsection (h) of this section that corresponds to the tract with the highest appraised or market value of all the contiguous tracts as reflected on the ARB orders being appealed is sufficient. In the event two or more tracts are not contiguous, the property owner may select the one property that will be arbitrated; otherwise, the property with the highest appraised or market value will be selected for arbitration.

(h) A deposit is required to be submitted with each request for binding arbitration in the following amounts, as applicable:

(1) $450 if the property qualifies as the owner's residence homestead under Tax Code, §11.13, and the appraised or market value is $500,000 or less as determined by the ARB order;

(2) $500 if the property qualifies as the owner's residence homestead under Tax Code, §11.13, and the appraised or market value is more than $500,000 as determined by the ARB order;

(3) $500 if the property does not qualify as the owner's residence homestead under Tax Code, §11.13, and the appraised or market value is $1 million or less as determined by the ARB order;

(4) $800 if the property does not qualify as the owner's residence homestead under Tax Code, §11.13, and the appraised or market value is more than $1 million but not more than $2 million as determined by the ARB order;

(5) $1,050 if the property does not qualify as the owner's residence homestead under Tax Code, §11.13, and the appraised or market value of the property is more than $2 million but not more than $3 million as determined by the ARB order; and

(6) $1,550 if the property does not qualify as the owner's residence homestead under Tax Code, §11.13, and the appraised or market value of the property is more than $3 million but not more than $5 million as determined by the ARB order.

Source Note: The provisions of this §9.4252 adopted to be effective May 29, 2018, 43 TexReg 3459; amended to be effective December 31, 2019, 44 TexReg 8327