Omitted Property Tax- Legal Representation

What Is Omitted Property?

Omitted property refers to taxable property not previously included on the appraisal roll. Often, this means that for one or more past years, the taxing authority did not have complete information about your property or missed listing specific improvements.

When this oversight is discovered, they may add the omitted property to the current appraisal roll and potentially adjust the tax roll. Under the Texas Tax Code, Section 25.21, appraisal districts can add an omitted property to the tax roll for the current year and assess up to two previous tax years. 

This can lead to significant back taxes that may catch property owners by surprise.

Do you Need Help?

We have seen firsthand how frustrating it can be to discover that an appraisal district has suddenly included previously unlisted property on the tax rolls. An omitted property tax bill almost always arrives when you least expect it. The reason is simple. An omitted property tax usually occurs on property you either forgot or did not know was taxable. Adding confusion, omitted property usually involves years in which the owner no longer owns the property or the correct value is much lower than the tax appraisal.  

Two common issues:

1. We know most people are uncertain about why are being taxed and what steps they can take. Thus, you need someone to guide you through the process, provide support, and finally, find the best path forward. We’re here to help in all three regards.
   

2. Omitted property problems are time-consuming to resolve, something nobody really wants to handle. The process involves coordination with the taxing authorities, contains additional deadlines, and often requires a partial tax payment to seek relief. This is where we can help. Don't avoid the problem; find the solution. More to the point, let us be your solution.

Common Reasons for Property Being Omitted

Omissions occur for various reasons. Sometimes, communication between property owners and appraisal districts breaks down. Other times, records don’t reflect recent construction or renovations. Typical causes include:

• Unreported renovations: If you remodeled your kitchen or added a new room, and the appraisal district was never informed, it might not have been considered a new improvement.

• Newly discovered improvements: Structures like sheds, guesthouses, detached garages, and swimming pools may have gone unnoticed during previous assessments.

• Clerical errors: Administrative mistakes happen. A misfiled document or coding error can result in the property going unlisted for a period.

• Changes in property classification: If your property’s purpose changed (e.g., from residential to commercial) and the district missed this update, some aspects may be omitted.

Regardless of the cause, finding an omitted property on your tax bill feels unsettling. Understanding how and why it happened provides a starting point for responding effectively.

How Omitted Property Is Discovered

Appraisal districts rely on various methods to maintain accurate records. They may perform routine inspections, analyze building permits, or review satellite imagery. Sometimes, an appraisal district only realizes something was missed when comparing previous years’ records or responding to a tip.

If they believe that taxable property was left off the rolls, they will add it. From there, as the property owner, you will receive notice and may face additional tax obligations as a tax penalty. While this process might seem abrupt, it’s founded on the principle that all taxpayers should pay their fair share.

Potential Financial Impact on Property Owners

Suddenly facing back taxes for one or two prior years plus the current year can be a financial strain. Although omitted property often involves additions or improvements that do increase market value, the shock of a larger-than-expected tax bill is never pleasant.

The monetary impact varies depending on:

• Extent of omitted property: A small structure may add a modest amount, while a major addition could result in hefty back taxes.

• Multiple prior years included: Since the appraisal district can assess taxes for up to two previous years, the total owed can climb quickly.

• Applicable interest or penalties: Late payments might incur additional costs, making timely responses important.

Understanding these factors helps you prepare. If you act promptly, you may have options to challenge assessments or negotiate payment arrangements.

Knowing Your Rights as a Property Owner

Property owners don’t have to accept these adjustments without question. If you believe the appraisal district made an error or overvalued the omitted property, you’ve the right to challenge it. Remember the following:

• You can request a hearing: If the district’s assessment seems off, you may request a hearing before an appraisal review board. Presenting evidence supporting a lower value can lead to a fairer outcome.

• You can provide documentation: Detailed records, photos, or contractor invoices can help show that the property’s value isn’t as high as stated or that the improvement doesn’t exist.

• You can seek professional guidance: Working with a property tax attorney who knows how to handle omitted property issues helps you understand your rights and identify the strongest approach.

Strategies for Disputing Omitted Property Assessments

When facing an omitted property assessment, a few approaches can help you respond:

• Verify the improvement’s existence: Confirm that the structure or addition in question truly belongs to your property. Occasionally, districts attribute something to the wrong address.

• Check the timing: If the appraisal district tries to reach back more than the allowed two previous years, you can argue that portion is invalid.

• Challenge the valuation: Even if you agree the property was omitted, the assessed value might be too high. Presenting recent comparable sales or contractor estimates can support a lower figure.

• Consider an appraisal professional’s opinion: Getting an independent professional’s report may give you credible evidence to contest the district’s numbers.

All these steps can combine to reduce the amount you owe or correct inaccuracies.

Deadlines and Procedures

Omitted property cases follow specific timelines. Once you receive notice, you’ve limited time to appeal. Missing these deadlines often means you lose the chance to challenge the assessment. Typically, the notice will outline your next steps, such as the procedure to schedule a hearing and the due date for any protest filings.

Since Texas property tax law sets strict deadlines, acting quickly is key. Even if you feel unsure about your case, it’s better to initiate the process than let the clock run out. Gathering the necessary documents and seeking guidance early increases your odds of a favorable outcome.

Payment Options and Reductions

If the district confirms that the omitted property was correctly added and fairly assessed, you may still have some options. Sometimes, local entities allow payment plans that spread out the cost. If you qualify for certain exemptions—like a homestead exemption—your taxable value might decrease, lowering the final tax bill.

Additionally, checking with the appraisal district about any available relief or deferral programs can help. While this may not eliminate the back taxes, it might soften the financial blow, giving you time to manage the additional expense.

Importance Of Record-Keeping

Keeping accurate, up-to-date records is one of the best ways to protect yourself against unexpected omissions. Consider the following record-keeping options:

• Saving building permits and inspection reports: Showing that you reported improvements or that certain structures never existed strengthens your position.

• Taking photographs of your property each year: Visual evidence can confirm when additions occurred or show that no changes were made.

• Maintaining contractor invoices: Detailed receipts and work orders help verify what work was done and when, making it easier to dispute erroneous valuations.

With strong records, you gain the confidence to respond quickly and effectively if omitted property issues arise.

Integrating Omitted Property Into Yearly Tax Planning

Treating property tax responsibilities as a one-time event each year can lead to surprises. Instead, we encourage thinking of your property’s valuation and tax obligations as ongoing considerations. Monitoring your property’s status and any improvements helps you stay ahead of potential omissions.

• Review your appraisal annually: Check if all listed improvements are accurate.

• Report significant changes promptly: Informing the appraisal district of major additions reduces the chance of later surprise additions.

• Stay informed about local property tax policies: Changes in local laws or procedures might affect how and when omissions are added.

These proactive steps help prevent unwelcome surprises and keep your finances steadier over time.

Turning to Our Professionals

Addressing omitted property issues alone can feel stressful. As a property tax attorney, Michael Saegert offers guidance to those who find themselves facing sudden back taxes or valuation disputes. We can help you:

• Identify errors in the district’s assessment: By reviewing the documentation, we spot inconsistencies or incorrect assumptions.

• Prepare for a hearing: We can help gather evidence, organize it for clarity, and present it in a compelling manner.

• Negotiate with appraisal districts: Sometimes a frank discussion leads to a fair compromise that avoids the need for a prolonged battle.

• File necessary paperwork promptly: We help keep you on track with deadlines and procedures, reducing the risk of missed opportunities.

Professional guidance can turn a confusing situation into a manageable one, potentially saving you money and time.

FAQs About Omitted Property

Many property owners share similar concerns. Some common questions include:

• How far back can the district go?
  According to Texas Tax Code Section 25.21, appraisal districts typically can reach back two previous tax years, plus the current year.

• Can I refuse to pay if I think they’re wrong?
  Not paying can lead to penalties or interest. It’s often better to protest the valuation while maintaining good standing. In some cases, partial payments can be arranged.

• Is there ever a situation where omitted property isn’t taxable?
  If the omitted property falls under an exemption or isn’t actually located on your parcel, it may not be taxable. Reviewing the specifics is essential.

• How long do I have to appeal?
  Deadlines vary, but you’ll typically have a short window after receiving notice. Check the appraisal district’s timeline carefully.

• Do I need a lawyer?
  While not required, working with an attorney familiar with omitted property cases can help you identify strategies you might miss on your own.

When to Seek Help

If you’ve received notice of omitted property and are uncertain about its legitimacy, it might be time to seek professional input. Handling the process alone is possible, but legal guidance can clarify confusion, strengthen your case, and help streamline communication with the district.

When back taxes threaten your budget or the valuation seems inflated, consulting someone who understands property tax laws can provide much-needed relief. Sometimes, even a brief discussion helps you see the steps forward more clearly.

We serve clients throughout Texas, including Houston, Pasadena, Sugar Land, The Woodlands, Beaumont, Corpus Christi, San Antonio, Austin, Dallas, Fort Worth, El Paso, and beyond. Whether you’re facing newly discovered omitted property or want to prepare for potential issues, we can help you find a solution that protects your interests. Contact Michael Saegert, Attorney at Law.