Montgomery Property Tax Protest ARB Tax Savings over $28MM in 2023
After record stinginess at the informal level, the Montgomery Central Appraisal District (MCAD) was handed some solid defeats by the impartial appraisal review board (ARB) in 2023. 67% of all formal appeals ended in a reduction, including 74% for single family homes. $876 million in residential values were reduced, while businesses got $176 million removed from their tax burden. Land your own victory against MCAD when you enroll in O’Connor’s Property Tax Protection Program(TM) today. There are never any upfront or hidden fees, and you will only pay if you reduce your property taxes. Enroll, relax, and save.
Protests with Written ARB DeterminationSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Thousands | ||||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
| Total protests | 9.154 | 6.145 | 8.832 | 8.282 | 6.591 | 12.587 | 19.721 | 18.286 | 33.077 | 47.867 | 55.743 | |
| Protests single family residential | 7.941 | 4.808 | 6.748 | 6.137 | 5.224 | 9.934 | 15.596 | 14.849 | 25.657 | 36.465 | 44.730 | |
| Protests with all other | 1.213 | 1.337 | 2.084 | 2.145 | 1.367 | 2.653 | 4.125 | 3.437 | 7.420 | 11.402 | 11.013 | |
Texas property owners should protest annually since Hearing results depend on the appraiser assigned or the ARB; results vary widely. You do not know the appraiser or ARB panel prior to appealing.
Montgomery County Protests with Written ARB Determination
Montgomery County has one of the best housing markets in Texas and is the premier place to live in the Houston area. With a growing population, rising home values, and even higher taxes, more residents than ever are resorting to property tax protests every year. However, as simple informal appeals are not enough to protect homes and other properties, the next step is to make a formal appeal to the appraisal review board (ARB).
ARB appeals are rising in prominence for Montgomery County, especially for homeowners. It takes a lot of knowledge to beat the Montgomery Central Appraisal District (MCAD) in front of the ARB, but O’Connor knows all the ways to get a flawless victory. Heralds of property tax protests for over 50 years, O’Connor is one of the biggest property tax appeal firms in America and are Texas-based favorites for those looking to pay less on their taxes.
MCAD Protests by Property Type
Reflecting the changing tides, Montgomery County is starting to resemble the likes of Collin or Denton Counties when it comes to appeals. With homes being the premier property, ARB hearings are becoming necessary to get a fair reduction, or even a reduction at all. Single family homes have completely changed the property tax protest landscape in Montgomery County, leading to a 505.28% increase of formal appeals in the past decade.
While informal appeals worked well for commercial properties, single family homes have been seeing settlements below the statewide average. Formal appeals on the other hand, have been a blessing for homeowners, as the impartial ARB sides with them against MCAD’s unreasonable taxes. Of the 47,867 formal protests in 2023, 36,465 were for single family homes.
Montgomery County ARB Decisions with a ReductionSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Thousands | ||||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
| Total | 5.336 | 4.032 | 6.239 | 5.721 | 3.813 | 9.727 | 16.015 | 12.413 | 22.356 | 32.298 | 42.209 | |
| Single Family Residential | 4.853 | 3.337 | 5.071 | 4.491 | 3.053 | 7.928 | 13.408 | 10.682 | 18.905 | 27.127 | 36.914 | |
| Commercial / All Other | 0.483 | 0.695 | 1.168 | 1.230 | 0.760 | 1.799 | 2.607 | 1.731 | 3.451 | 5.171 | 5.295 | |
Texas property owners should protest annually since An annual appeal is an insurance policy to avoid major increases.
Montgomery County ARB Decisions with a Reduction
With the ascendancy of single family homes as the property-of-choice for formal appeals, it should not be a shock to see that they completely ruled in the category of successful protests. 32,298 ARB hearings ended in a reduction for the taxpayer, with 27,127 being single family homeowners. Commercial and related properties may not have the gaudy numbers of single family homes, but they put on a strong showing with 5,171 successful formal appeals. Just from 2021 to 2023, single family homes won 153.95% more formal appeals, while businesses won 198.73% more.
Percent That Resulted in A ReductionSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Percent | ||||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
| Total Reduction | 58% | 66% | 71% | 69% | 58% | 77% | 81% | 68% | 68% | 67% | 76% | |
| Single Family Residential | 61% | 69% | 75% | 73% | 58% | 80% | 86% | 72% | 74% | 74% | 83% | |
| Commercial / All Other | 40% | 52% | 56% | 57% | 56% | 68% | 63% | 50% | 47% | 45% | 48% | |
Texas property owners should protest annually since To ensure their property taxes are at the lowest possible level.
Percent That Resulted in A Reduction
Single family homes not only had numbers on their side when it came to appeals but also had a huge percentage of wins. 74% of all ARB appeals for homeowners ended in a value reduction. After finishing well above the statewide average in informal appeals, commercial properties dropped somewhat in 2023, scoring victories in front of the ARB at only 45%. The total between the two was a win rate of 67%.
Value Reduction From Written ARB DeterminationsSource: 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 $ Reduction | 0.215 | 0.287 | 0.423 | 0.494 | 0.565 | 0.681 | 0.797 | 1.152 | 1.102 | 1.052 | 1.667 | |
| Single Family Residential | 0.090 | 0.117 | 0.174 | 0.165 | 0.156 | 0.327 | 0.499 | 0.464 | 0.670 | 0.876 | 1.153 | |
| Commercial / All Other | 0.125 | 0.169 | 0.249 | 0.329 | 0.409 | 0.354 | 0.298 | 0.688 | 0.432 | 0.176 | 0.514 | |
Texas property owners should protest annually since Unequal appraisal allows protests based on neighbors having a better tax assessment.
Dollar Value Reduction from Texas ARB Hearings
Homes and businesses took two separate trajectories. Single family homes saved a record $876 million in property values thanks to ARB hearings, while commercial and related properties logged $176 million. This was a record high for homeowners and a record low for businesses. This solidifies the pattern of commercial dominance in informal appeals and residential power in formal ones. The implications are that Montgomery County is becoming a very hot housing market, one set for growth in the future.