Galveston Judicial Appeals Claw Back $39 Million in Taxes
With such heavy focus on the appraisal review board (ARB), it is no surprise that more taxpayers in Galveston County are taking their protests to the post-administrative appeal level. These lawsuits against the Galveston County Central Appraisal District (GCAD) are becoming quite common, especially judicial appeals for businesses. From a binding arbitration case for a family home, to a trial to decide the taxable value of a multi-billion-dollar refinery, post-administrative protests act as the final equalizer between taxpayers and GCAD. Kept the ultimate advantage when you join O’Connor’s Property Tax Protection Program™today. O’Connor will run point on your lawsuit, putting together the legal dream team needed to land the victory. There is no cost to enroll. Enroll, relax, and save.
Number Appealed to Binding ArbitrationSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Appeals | ||||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
| Number Determinations appealed | 7 | 18 | 189 | 212 | 124 | 119 | 114 | 374 | 338 | 438 | 522 | |
Texas property owners should protest annually since Texas has one of the best systems for appeals for property owners.
Galveston County Appeals after ARB Hearing
While most cases will stop at the informal and formal protest stage, there is one final step that premium properties can take when it comes to lower taxes, post-administrative appeals. These are lawsuits against the Galveston County Central Appraisal District (GCAD) that pit the legal team of the taxpayer against the claims of the CAD. These are the most expensive, costly, and stressful of all protests, which is why they are generally reserved for multi-million-dollar homes, businesses, and industrial facilities.
This is one step on the protest ladder that you cannot handle yourself. You need expert help to put together a legal team, find expert witnesses, and gather the key evidence needed to win. Thankfully, O’Connor is here to help. As one of the the largest property tax firms in the United States, O’Connor will run your post-administrative appeal for you, allowing you to relax.
GCAD Binding Arbitration
Binding arbitration is generally the simplest of post-administrative appeals, involving only a small team on either side, with an expert arbiter in the middle. Binding arbitration is used for homes valued under $5 million, though there is no cap if the residence is a homestead. The plaintiff puts up a fee for the arbiter, which is held in escrow until the matter is settled. If the arbiter sides with the taxpayer, then the fee is returned, and the money is paid by GCAD. If GCAD is successful, the arbiter will keep the money. There were 438 cases of binding arbitration in Galveston County for 2023, the most yet in the county.
Appealed to State Office of Administrative Hearings (SOAH)Source: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Appeals | ||||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
| Appealed to SOAH | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 2 | |
State Office of Administrative Hearings (SOAH)
Both the most recent and the rarest of all appeals, State Office of Administrative Hearings (SOAH) protests are dedicated solely to homes valued over $1 million. SOAH hearings are something of a hybrid between binding arbitration and a trial, with a judge ruling over the case. Due to the newness and esoteric subject matter, many counties have never seen an appeal of this type. Galveston County has had one in its history, which took place in 2023.
Judicial AppealsSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Appeals | ||||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
| Judicial Appeals | 15.00 | 25.00 | 29.00 | 26.00 | 22.00 | 18.00 | 153.00 | 250.00 | 248.00 | 357.00 | 387.00 | |
Galveston County Judicial Appeals
Judicial appeals are the classic lawsuit that one expects when they think about post-administrative protests, and the two terms are often used interchangeably. This is a civil trial with a judge or jury in front of the district court. It requires teams of attorneys, paralegals, expert witnesses, and more. Due to the cost of putting together a judicial appeal, they are typically aimed exclusively at business properties, though some high-dollar homes can make it to the docket.
When aimed at businesses, judicial appeals are usually deployed to increase a successful formal appeal, acting as a way to shave just a little bit more off of the top. These have become extremely common in Galveston County in recent years, thanks to the growing embrace of formal appeals. In 2023, there were 357 judicial appeals filed, a giant step up from the 248 filed in 2022.