Galveston Property Tax Appeals Save $91+ Million Per Year
Galveston is one of the most protested counties in Texas. Thanks to property being incredibly finite in key areas, the growing demand has pushed up property values to a place never seen before. Galveston taxpayers utilized informal appeals to save over $36 million in 2023, while formal appeals did even better with $55.35 million. Even judicial appeals and lawsuits brought in over $38 million, one of the highest in Texas. Due to the complex nature of formal hearings, and the competitive nature of informal ones, the best way to level the playing field is to have an expert on your side. O’Connor’s Property Tax Protection Program™ is your key to victory, allowing you to join forces with an elite firm that knows how to take on every Texas appraisal district. There is no charge to join, and you will only pay if your taxes are lowered. Enroll, relax, and save .
Total Value Reduction, Informal HearingsSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Millions of $ | |||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
| $ Total Value Reduction | 285.58 | 511.02 | 640.62 | 751.78 | 862.95 | 898.07 | 1,139.22 | 1,990.39 | 2,066.09 | 3,242.07 | 4,418.05 |
| Single Family Residential Reduction | 118.91 | 273.22 | 256.12 | 241.97 | 227.82 | 527.77 | 682.33 | 1,194.22 | 1,203.84 | 1,581.45 | 1,959.06 |
| Commercial / Other | 166.68 | 237.80 | 384.50 | 509.82 | 635.13 | 370.30 | 456.90 | 796.17 | 862.26 | 1,660.62 | 2,458.99 |
Texas property owners should protest annually since The value cannot be raised during the protest, based on 2019 legislation.
Galveston County Property Tax Savings from Administrative Appeals
Pairing well with exemptions, property tax appeals are becoming a necessary tool in Galveston County. Thanks to overaggressive taxation by the Galveston County Central Appraisal District (GCAD), a small area of premium real estate, and increasing demand, the cost of property in Galveston has never been higher. While the county is one of the most protested in Texas, there is always room for improvement.
One of the past ways to score a victory against GCAD or any other appraisal district is to join forces with an expert. O’Connor is here to help and is one of the largest property tax firms in the nation. Based in Houston, O’Connor understands what it means to take on a Texas CAD. For over 50 years, the experts at O’Connor have been winning clients reductions against all odds.
GCAD Informal Hearings
Informal hearings are the most basic of all property tax appeals and the necessary first step to reach other levels. They often prove to be adequate in most situations, and an informal appeal that is well-prepared can often get a correct resolution. In 2023, $1.73 billion in taxable value was taken off the books. Though this was lower than 2021 or 2022, it was still the third highest ever recorded. Residential properties were responsible for $1.03 billion, while commercial properties accounted for $705.11 million. Single family homes overtook businesses in 2019 and have never relinquished the lead.
Total Value Reduction, Formal ARB HearingsSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Billions of $ | |||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
| $ Total Value Reduction | 0.103 | 0.157 | 0.125 | 0.418 | 0.589 | 0.760 | 1.491 | 2.196 | 1.713 | 2.636 | 3.218 |
| Single Family Residential Reduction | 0.010 | 0.024 | 0.023 | 0.136 | 0.157 | 0.177 | 0.326 | 0.198 | 0.500 | 1.112 | 1.077 |
| Commercial / Other | 0.093 | 0.132 | 0.102 | 0.282 | 0.432 | 0.583 | 1.165 | 1.998 | 1.213 | 1.523 | 2.142 |
Texas property owners should protest annually since You can’t evaluate the strength of your appeal until you obtain the hearing evidence file. You have to protest to obtain the hearing evidence file (available free upon request via U.S. mail).
GCAD Formal ARB Hearings
While informal appeals are down in value, formal hearings are up in a big way. These hearings are conducted before a panel of experts known as the appraisal review board (ARB). The ARB listens to evidence from both the taxpayer and GCAD, then decides which side has the stronger case. It is incredibly common for ARB hearings to be the top appeal type in high-dollar counties, so that tracks with Galveston. $2.64 billion in taxable value was reduced by ARB appeals. Commercial properties usually lead these protests, and this was certainly true in 2023, as they pulled down a savings of $1.52 billion. Single family homes scored record victories as well, bringing home $1.11 billion. Residential value disputed before the ARB doubled between 2022 and 2023.
Tax Savings, Informal HearingsSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Millions of $ | |||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
| $ Total Value Reduction | 6.00 | 10.73 | 13.45 | 15.79 | 18.12 | 18.86 | 23.92 | 41.80 | 43.39 | 68.08 | 92.78 |
| Single Family Residential Reduction | 2.50 | 5.74 | 5.38 | 5.08 | 4.78 | 11.08 | 14.33 | 25.08 | 25.28 | 33.21 | 41.14 |
| Commercial / Other | 3.50 | 4.99 | 8.07 | 10.71 | 13.34 | 7.78 | 9.59 | 16.72 | 18.11 | 34.87 | 51.64 |
Texas property owners should protest annually since Not appealing is used against property owners in the subsequent years since “you agreed to the value” (by not protesting).
Estimated Total Property Tax Informal Savings
Though the taxpayers of Galveston County massively favor ARB hearings, that should not be used to impugn the effectiveness of informal appeals. Not only are they a gateway to the ARB, informal appeals act as an equalizer for people struggling with their taxes. These can be a lifeline for working families that would otherwise be forced to pay the full amount. Also, these protests can often lead to fantastic windfalls themselves, which is why they are relied on by many counties.
Informal protests brought in a tax cut of $36.37 million in 2023. While this was a step down from the record year of 2022, it was still the third largest on record. Single family homes were able to save $21.56 million on their taxes, a significant reduction for homeowners. Commercial properties, meanwhile, saw a bounty of $14.81 million in slashed levies.
Tax Savings, Formal ARB HearingsSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Millions of $ | |||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
| $ Total Value Reduction | 2.16 | 3.29 | 2.62 | 8.78 | 12.37 | 15.96 | 31.31 | 46.12 | 35.98 | 55.35 | 67.59 |
| Single Family Residential Reduction | 0.21 | 0.51 | 0.48 | 2.86 | 3.29 | 3.72 | 6.84 | 4.16 | 10.51 | 23.36 | 22.61 |
| Commercial / Other | 1.95 | 2.78 | 2.14 | 5.91 | 9.08 | 12.24 | 24.47 | 41.96 | 25.47 | 31.99 | 44.97 |
Tax Savings, Formal ARB Hearings
ARB hearings are the meat-and-potatoes of Galveston protests. Thanks to the high-dollar amount associated with many properties, this tends to be the best bet for both business and homeowners. A total of $55.35 million in taxes came back in 2023 thanks to ARB hearings, the most ever by a significant margin. Single family homes saved $23.36 million alone, more than double the 2022 total of $10.51 million. Commercial properties had their second-highest sum to date, scoring $31.99 million, returning from a down year in 2022.
Total Tax Savings (Informal & Formal)Source: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Millions of $ | |||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
| $ Total Value Reduction | 8.16 | 14.02 | 16.07 | 24.57 | 30.49 | 34.82 | 55.23 | 87.92 | 79.37 | 123.43 | 160.37 |
| Single Family Residential Reduction | 2.71 | 6.25 | 5.86 | 7.94 | 8.07 | 14.80 | 21.17 | 29.24 | 35.79 | 56.57 | 63.75 |
| Commercial / Other | 5.45 | 7.77 | 10.21 | 16.62 | 22.42 | 20.02 | 34.06 | 58.68 | 43.58 | 66.86 | 96.61 |
Total Tax Savings
When put all together, administrative appeals were able to lower the tax burden for families and businesses by a staggering $91.72 million. Not only was this a record haul, it may be a watershed moment for single family homes. Commercial properties have always been on top when it comes to protest savings. 2023 was the first time that residential real estate came close to surpassing businesses. Residential property landed $44.92 million, while businesses experienced a total cut of $46.80 million. With more homes joining the protest ranks every year, they are sure to overtake businesses in a decade.