Binding Arbitration – Commercial/Residential properties

Posted on:

04/29/2026

If your property was protested to the Appraisal Review Board (ARB) and the ARB decision did not reduce your value to an acceptable value, Binding Arbitration is one option to protest your value further.
For qualifying properties, arbitration offers a second opportunity to challenge an unfavorable ARB ruling without going to district court. The ARB ruled value must be under $5,000,000 to qualify for arbitration.

Why Consider Arbitration After an ARB Decision?

An unfavorable ARB decision can leave your assessed value too high, increasing property taxes and reducing net operating income (NOI). Binding arbitration allows a neutral third-party arbitrator to review your case.
In Texas, arbitration is generally available for:

  • Commercial properties valued under $5 million
  • Residence homesteads (no value cap)
  • Property owners who have completed the ARB process
  • Owners who are current on property taxes
  • Cases where no lawsuit has been filed

Compared to district court litigation, arbitration is typically faster and more cost-effective.

Key Arbitration Deadlines

Timing is critical. After receiving the ARB’s Notice of Final Order, we have 60 days to file a request for binding arbitration. Missing this deadline will eliminate your ability to pursue arbitration.
A deposit is required when filing. The amount varies based on property value and is set by the Texas Comptroller. If we prevail, the deposit (minus the $50 processing fee) is refunded.

How the Arbitration Process Works

  • File Request & Deposit
    Property Tax Help files your arbitration request within 60 days and submits the required deposit.
  • 45-Day Settlement Period
    After filing, there is a 45-day window where we can negotiate a settlement with the appraisal district.
  • Arbitrator Appointment
    If no agreement is reached, the Texas Comptroller appoints a qualified arbitrator.
  • Arbitration Hearing
    Evidence is presented, including income data, comparable sales, cost analysis, and property condition documentation.
  • Final Decision
    If the arbitrator’s value is closer to your proposed value than the district’s, your deposit is refunded (less the $50 processing fee), and the district pays the arbitrator’s fee.

How Property Tax Help Supports Property Owners

Arbitration requires careful preparation and strict compliance with state rules. Property Tax Help assists by:

  • Confirming eligibility under Texas law
  • Filing within the 60-day window
  • Preparing income, market, and cost-based valuation evidence
  • Representing you at the arbitration hearing

We focus on commercial property owners while also assisting eligible residential property owners.

Don’t Let an Unfavorable ARB Decision Be Final

If your property received an unfavorable ARB ruling, arbitration may provide a second chance to pursue a fair value.
Call (254) 640-0057 or email ops@proptaxhelp.com.



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Written by: Pat Musgrave

Patrick Musgrave is licensed in Texas and Tennessee to represent taxpayers in property tax disputes and negotiations. Pat has over 40 years of experience and holds a CAE designation from the International Association of Assessing Officers attesting to his ongoing commitment to professional education and expertise.

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