In Harris County Appraisal District v. ETC Marketing, Ltd., 399 S.W.3d 364 (Tex. App.--Houston 14th Dist. 2013, pet. denied), the taxpayer claimed that the property in question was exempt from taxation under federal law because it was in interstate commerce.
The taxpayer failed to raise that claim in its administrative protest to the appraisal review board. Instead, the taxpayer raised the claim for the first time in the appeal to the district court of the review board's decision. Id. at 366.
The taxpayer argued it was not required to exhaust its administrative remedies because the assessed tax was unconstitutional and the taxpayer was raising a pure question of law. Id. at 368.
The Court rejected that argument, stating:
"The taxpayer is not raising a pure question of law; it also is seeking to have its tax assessments set aside. It therefore is not relieved from the requirement of exhausting administrative remedies." Id.