Atascosa County Appraisal District v. Tymrak

In Atascosa County Appraisal District v. Tymrak, 858 S.W.2d 335 (Tex. 1993), the Court outlined in detail the steps that must be followed to challenge an appraisal for subsequent years. Tymrak, 858 S.W.2d at 336-37. The taxpayer must timely file a notice of protest and appear (personally, by affidavit, or by representative) at a protest hearing. Id. at 336 (citing Tex. Tax Code Ann. 41.44, 41.45). After these steps are timely completed, the taxpayer must timely file his petition in the trial court. The final disposition affects only the appraised value of the property for that one tax year. Id. at 337. Unless a property owner repeats this process and files another petition or files an amended petition in a pending lawsuit concerning a previous year, the taxpayer will lose his right to litigate the appraised value for a subsequent year, even when a lawsuit challenging the appraised value of the same property for a previous year is pending. Id. (citing Tex. Tax Code Ann. 42.21(c)). To challenge any assessment, a taxpayer must timely file a notice of protest and appear (personally, by affidavit, or by representative) at a protest hearing. Id. at 336; see also Tex. Tax Code Ann. 41.44, .45 (West Supp. 2012). If these steps are timely completed without a satisfactory resolution, the taxpayer must then timely file its petition in the trial court; this "appeal" of the appraisal review board's order concerns the current tax year only. Tymrak, 858 S.W.2d at 337; see also Tex. Tax Code Ann. 42.21 (West Supp. 2012). If an appeal of a prior year's protest is pending when the appraisal review board issues its order, the tax code provides the taxpayer with two options: (1) amend the petition for the pending appeal to include the grounds for appealing the subsequent order, or (2) appeal the board's order independently of the pending appeal. Tex. Tax. Code Ann. 42.21(c). As the supreme court in Tymrak observed: "Since taxpayer appeals are usually filed at the end of the year, most cases are still pending when the appraisal district delivers notices of appraised value for the next tax year. At that time, the taxpayer makes the decision whether to begin the task of exhausting its administrative remedies in order to correct an improper appraisal of its property for that tax year. The taxpayer must complete these steps for each year that it desires to challenge the valuation because the completion of all the administrative requirements, the filing of a timely petition in the trial court, and the prosecution of the lawsuit to its final disposition affects only the appraised value of the property for that one tax year. Unless a property owner repeats this almost year-long administrative process and files another petition in a separate lawsuit or files an amended petition in a pending lawsuit filed appealing from an appraisal review board order issued in a previous year, the taxpayer loses its right to litigate the appraised value for the subsequent year, even when a lawsuit challenging the appraised value of the same property for a previous year is pending. Tex. Tax Code 42.21(c)." Tymrak, 858 S.W.2d at 337; see also Tex. Tax Code Ann. 42.09 (tax code procedures for protesting assessment are taxpayer's exclusive remedies). In Atascosa Cnty. Appraisal Dist. v. Tymrak, the trial court determined that each tax year constituted a separate "appeal" under Tex. Tax Code section 42.29 and awarded the taxpayers attorney's fees for four appeals. On appeal to the Texas Supreme Court, the court began its analysis by noting that with the enactment of Chapter 42 of the Tax Code, the Legislature provided a means for "taxpayers to judicially challenge the appraisal of their property for property tax purposes by appealing that particular tax year's appraisal to the trial court." 858 S.W.2d at 336. The court also noted that an "appraisal review board order is issued only after the culmination of the annual administrative process a taxpayer must complete before it may petition a trial court for redress of the overvaluation of its property for that year." Id. The court concluded as follows: "Since a taxpayer's appeal is an appeal of an appraisal review board's order determining the taxpayer's protest of the district's valuation of its property for that particular tax year, . . . and because the Tax Code and the constitution mandate that property shall be appraised at its market value as of January 1 of each tax year, . . . it is clear that an "appeal" concerns the current tax year only. An "appeal" for purposes of section 42.29 concerns only one tax year. The taxpayer must pursue the annual administrative process for each tax year that he wants to appeal to the trial court. Consequently, we conclude that section 42.29 authorizes the award of attorney's fees for each tax year at issue in a multiple-year property tax case." Id. Although the Tymrak court addressed multiple-year challenges, we believe its reasoning is instructive in the circumstances here where the challenge is to a single tax year but for multiple properties. The "appeal" is taken from the appraisal review board's order. Id. at 336-37; Tex. Tax Code 42.01. The "order" is issued at the end of the annual administrative process for each property valuation. Tymrak, 858 S.W.2d at 336. The annual administrative process begins on January 1 of the tax year, "the date on which taxable property is appraised for purposes of listing the property in the appraisal records." Id. The appraisal district gives notice of appraised value to the taxpayer in the first few months of each year. Id.; Tax Code Ann. 25.19 (West 2008). Following the protest process, the appraisal review board's orders are usually delivered during the late summer and early fall. Tymrak, 858 S.W.2d at 336-37. On "appeal," "if the court determines that the appraised value of property according to the appraisal roll exceeds the appraised value required by law, the property owner is entitled to a reduction of the appraised value on the appraisal roll to the appraised value determined by the court." Tax Code Ann. 42.25 (West 2008).