Hidalgo Property Tax Appeals Save $74+ Million Per Year
Property tax appeals are becoming more common and more effective in Hidalgo County, with a record $74.43 million in taxes being cut in 2023. This was achieved thanks to both informal and formal appeals. The Hidalgo County Appraisal District (HCAD) has been enforcing unequal and unfair taxes for years, and the people of Hidalgo County are finally standing up to them. They need not fight alone, as O’Connor is here to help. Join O’Connor’s Property Tax Protection Program™ today and get support for your property tax appeal every year. We will protest your taxes annually, all while you never pay a dime, unless you win, that is. Enroll, relax, and save.
Total Value Reduction, Informal HearingsSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Millions of $ | |||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
| $ Total Value Reduction | 3,150.63 | 2,652.85 | 732.24 | 660.72 | 1,390.24 | 1,909.49 | 1,406.33 | 1,394.33 | 2,053.39 | 2,967.93 | 3,059.22 |
| Single Family Residential Reduction | 464.47 | 990.99 | 98.34 | 46.41 | 149.77 | 145.66 | 256.98 | 291.22 | 99.41 | 896.85 | 765.82 |
| Commercial / Other | 2,686.16 | 1,661.86 | 633.90 | 614.31 | 1,240.47 | 1,763.82 | 1,149.35 | 1,103.11 | 1,953.98 | 2,071.08 | 2,293.41 |
Texas property owners should protest annually since The value cannot be raised during the protest, based on 2019 legislation.
Hidalgo County Property Tax Savings from Administrative Appeals
The Texas Constitution guarantees all residents of Texas the right to protest unfair or unequal property taxes. While this right is often overlooked or forgotten, it is key in protecting some of the biggest investments a person will ever have. Appraisal districts, like the Hidalgo County Appraisal District (HCAD), have many responsibilities thrust upon them, while also having a lean staff that is not up to the task. This forces them to cut corners in order to meet their obligations, which often leaves taxpayers holding the bag with high taxes and valuations.
O’Connor is the premier property tax consulting firm in the United States and has been taking on organizations like HCAD for over 50 years. Founded on the belief that not a single Texan should pay more than their fair share, O’Connor partners with both businesses and homeowners to protect them from unequal or unrealistic taxes. Let O’Connor lead your property tax appeal and get you the best savings that you deserve.
Hidalgo CAD Informal Hearings
Informal hearings are the baseline tax appeal that can then be parlayed into other, more complex protests if needed. Informal appeals allow taxpayers to go directly to their local appraiser, and present evidence that their taxes are overvalued or unequal when compared to their neighbors. The people of Hidalgo County were able to reduce their taxable value by $2.97 billion in 2023. Single family homes reduced their tax burden by $896.85 million, while business owners landed even bigger reductions at $2.07 billion. Informal appeals were the most impactful of protests for Hidalgo County on the whole.
Total Value Reduction, Formal ARB HearingsSource: 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 Value Reduction | 0.223 | 0.393 | 0.243 | 0.093 | 0.188 | 0.143 | 0.098 | 0.248 | 0.412 | 0.576 | 0.453 |
| Single Family Residential Reduction | 0.015 | 0.066 | 0.034 | 0.002 | 0.012 | 0.013 | 0.014 | 0.042 | 0.047 | 0.053 | 0.197 |
| Commercial / Other | 0.208 | 0.327 | 0.209 | 0.091 | 0.177 | 0.130 | 0.084 | 0.206 | 0.365 | 0.524 | 0.256 |
Texas property owners should protest annually since You can’t evaluate the strength of your appeal until you obtain the hearing evidence file. You have to protest to obtain the hearing evidence file (available free upon request via U.S. mail).
Hidalgo CAD Formal ARB Hearings
If an informal hearing is rejected or does not return the reduction hoped for, then a taxpayer can push for an appeal before the appraisal review board (ARB). This is usually a 30-minute hearing where a trio of experts will see the evidence provided by the taxpayer and HCAD, before ruling on the value of a property. Due to the success of informal appeals in granting relief, only $576 million in value needed to be reduced at the formal level. Businesses, who usually push to the ARB, got the most reductions at $524 million. Single family homes still did well for themselves, getting back a solid $53 million. ARB appeals are becoming more common each year, and 2023 was the highest total value ever contested formally in the history of Hidalgo County.
Tax Savings, Informal HearingsSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Millions of $ | |||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
| $ Total Value Reduction | 66.16 | 55.71 | 15.38 | 13.88 | 29.20 | 40.10 | 29.53 | 29.28 | 43.12 | 62.33 | 64.24 |
| Single Family Residential Reduction | 9.75 | 20.81 | 2.07 | 0.97 | 3.15 | 3.06 | 5.40 | 6.12 | 2.09 | 18.83 | 16.08 |
| Commercial / Other | 56.41 | 34.90 | 13.31 | 12.90 | 26.05 | 37.04 | 24.14 | 23.17 | 41.03 | 43.49 | 48.16 |
Texas property owners should protest annually since Not appealing is used against property owners in the subsequent years since “you agreed to the value” (by not protesting).
Estimated Total Property Tax Informal Savings
Informal appeals are important for two reasons. First, as stated above, they are the gateway to later appeals. Second, they provide relief to the average taxpayer who may not be able to spend the money and time to appear before the ARB. This can be especially true for homeowners who are barely able to keep their home. This is why the $18.84 million returned to homeowners is a big deal in Hidalgo County. As both a working-class and historic community, every dollar saved helps keep a home in the hands of a family that may have lived there for generations.
The same can be said for businesses. While they typically have more resources to fight, they are often run on slim profit margins, where property taxes are one of their largest expenses. Even a slight reduction can produce a bonanza of savings. Hidalgo County commercial properties saw a combined return of $43.49 million thanks to informal appeals.
Tax Savings, Formal ARB HearingsSource: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Millions of $ | |||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
| $ Total Value Reduction | 4.68 | 8.26 | 5.11 | 1.95 | 3.96 | 3.01 | 2.06 | 5.20 | 8.65 | 12.10 | 9.52 |
| Single Family Residential Reduction | 0.31 | 1.39 | 0.72 | 0.04 | 0.24 | 0.27 | 0.30 | 0.88 | 0.99 | 1.11 | 4.14 |
| Commercial / Other | 4.37 | 6.87 | 4.39 | 1.91 | 3.71 | 2.74 | 1.76 | 4.33 | 7.66 | 11.00 | 5.38 |
Tax Savings from Formal ARB Hearings
ARB hearings were able to reduce actual taxes by $12.10 million in total. This marked largest formal reduction in the history of Hidalgo County. In keeping with tradition, the biggest savings came for businesses, who landed $11 million in savings. Homeowners were able to bring back over $1.10 million in savings as well. This was the most won by homeowners since 2015. Both numbers are impressive, as it takes more evidence to win an ARB determination than an informal one.
Total Tax Savings (Informal & Formal)Source: Texas Comptroller, compiled by O’Connor, and not affiliated with any appraisal district.
| Millions of $ | |||||||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
| $ Total Value Reduction | 70.84 | 63.97 | 20.49 | 15.83 | 33.16 | 43.11 | 31.59 | 34.48 | 51.77 | 74.43 | 73.76 |
| Single Family Residential Reduction | 10.06 | 22.20 | 2.79 | 1.01 | 3.39 | 3.33 | 5.70 | 7.00 | 3.08 | 19.94 | 20.22 |
| Commercial / Other | 60.78 | 41.77 | 17.70 | 14.81 | 29.76 | 39.78 | 25.90 | 27.50 | 48.69 | 54.49 | 53.54 |
Total Tax Savings
The people of Hidalgo County have reaped a strong bounty of savings thanks to property tax appeals. 2023 saw a combined total of $74.43 million come back to taxpayers. While commercial properties got the biggest share of $54.49 million, the $19.94 million for homeowners may tell a better story. Outside of a few outlier years, homes have been bringing in more savings every year for the past decade. This shows that both the taxes for single family homes are going up, while homeowners are also fighting back with more appeals. This is hopefully a good trend that will continue for years to come.