Property taxes are a major expense item for many triple net tenants and other tenants with property tax responsibilities. In Texas, however, these tenants often believe that they have no voice in the determination of the taxable value of their space. After all, tenants only lease the real estate that they occupy. They do not own it. How can it be fair, though, to charge the tenant for property taxes if the landlord does not protest the appraisal district’s value?

Knowing that the tenant has the contractual obligation to pay taxes, the landlord may see no incentive to expend time and resources on a valuation dispute, leaving the tenant with no remedy for property taxes based on excessive or unequal appraised values. The Texas Tax Code eliminates this inherent unfairness. It allows taxpaying tenants to protest the appraisal district’s value if the landlord does not. Tex. Tax Code §41.413. It further allows taxpaying tenants to appeal an order of the appraisal review board determining a protest to district court. Id. §42.015.

Tenants are empowered by statute to take charge of property tax matters when their landlords do not, giving them some control over this major expense item. These statutes are an important tool for tenants to protect themselves and cut costs. If you are a taxpaying tenant, keep them in mind next time the appraisal district notifies you of its appraised value.