Arbitration
An Additional Level of Appeal
A comprehensive guide to the binding arbitration process under Texas Tax Code Chapter 41A.
Arbitration is an option available to property owners under Tax Code Chapter 41A when they are not satisfied with the outcome of their formal appraisal board hearing. This process provides an additional level of appeal, giving property owners the opportunity to challenge the Appraisal Review Board's determination on their property's market value.
Eligibility
Property owners may request Binding Arbitration (RBA) if the following conditions are met:
- The Appraisal Review Board (ARB) has issued a final determination on the property's value.
- The property's value does not exceed $5 million (no limit for homesteads).
- Taxes have been paid on time.
- No lawsuit has been filed concerning the matter.
- The Request for Binding Arbitration (RBA) is filed within 60 days of the ARB Order.
Filing and Deposit
If you would like to file Arbitration, please notify us immediately by calling 713-338-2308, or emailing info@rainboltco.com. We can review the facts of your case and provide our recommendation on whether we believe it to be a cost-beneficial option for you.
The Comptroller requires a deposit from property owners who pursue arbitration. The deposit amounts are as follows:
| Property Type | Market Value | Deposit |
|---|---|---|
| Residence Homestead | $500,000 or less | $450 |
| Residence Homestead | More than $500,000 | $500 |
| Not Residence Homestead | $1 million or less | $500 |
| Not Residence Homestead | More than $1 million but not over $2 million | $800 |
| Not Residence Homestead | More than $2 million but not over $3 million | $1,050 |
| Not Residence Homestead | More than $3 million but not more than $5 million | $1,550 |
Your deposit will be wired to the Comptroller from our account. Please use one of the following methods to send us your deposit:
Zelle (preferred): Send to info@rainboltco.com
Check: Payable to Rainbolt & Co, 12930 Dairy Ashford Rd, Ste 901, Sugar Land, TX 77478
Settlement
Once processed, the case enters a 45-day settlement period. If a settlement is reached within this period, your deposit will be returned, minus a $50 administrative fee retained by the Comptroller. In our experience, most cases are resolved during this period.
Arbitrator Appointment and Hearing
If no settlement is reached, an arbitrator will be appointed after the 45-day period. The arbitrator will schedule a hearing and determine the property's value based on evidence presented by both parties.
How fees are handled
- If the arbitrator's determination is closer to your valuation than to the ARB's, your deposit will be refunded minus the filing fee, and the appraisal district will cover the arbitrator's fee.
- If the arbitrator's decision is closer to the ARB's valuation, your deposit will be used to pay the arbitrator's fee.
Not sure if arbitration is right for you?
We can review the facts of your case and provide our recommendation on whether we believe arbitration to be a cost-beneficial option for you.