Limited Binding Arbitration

A property owner may not request LBA unless:

• The property owner has filed a notice of protest on the property for the tax year.
• The property owner has delivered written notice to the chairman of the ARB, the chief appraiser, and the taxpayer liaison officer for the applicable appraisal district of the procedural requirement with which the property owner alleges the ARB or chief appraiser failed to comply on or before the fifth business day after the date the ARB or chief appraiser was required to comply with the requirement. This notice must be sent by certified mail, return receipt requested.
• The chairman of the ARB or chief appraiser, as applicable, fails to deliver to the property owner on or before the 10th day after the date the notice is delivered a written statement confirming that the ARB or chief appraiser will comply with the requirement or cure a failure to comply with the requirement.

Not earlier than 11 days or later than 30 days after the date the property owner delivers the required notice described above, a property owner must file Form AP-241, Request for Limited Binding Arbitration (PDF) together with the required deposit (PDF) with the Comptroller’s office at the following address:

A property owner may file a single LBA request that covers more than one property, more than one protest hearing or more than one procedural violation. The deposit (PDF) amount is computed based on the single property that would have required the largest deposit if filed separately.

Once the arbitration has been processed, the Comptroller's office will appoint an arbitrator to hear the dispute. Only arbitrators who are licensed attorneys may be appointed to LBA cases.

The arbitrator is responsible for working with the parties to set the date, time and location of the hearing.

More information about arbitrator qualification, the assignment process and the scheduling of hearings can be found on the Arbitrator Registry and Duties webpage.

At the conclusion of the hearing the arbitrator must determine if the ARB or chief appraiser failed to comply with one or more of the procedural requirements indicated in the request. If the arbitrator determines the ARB or chief appraiser failed to comply, the ARB or chief appraiser must comply with the requirement or, if a hearing has already been held and determined on the protest, the ARB must rescind the ARB order and hold a new hearing that complies with the procedural requirement.

If an arbitrator determines the ARB or chief appraiser failed to comply with one or more procedural requirements indicated in the LBA request, the property owner's deposit will be refunded, minus a $50 administrative fee retained by the Comptroller's office and the appraisal district will pay the arbitrator's fee as indicated on the determination form. If an arbitrator determines the ARB or chief appraiser complied with the procedural requirements indicated in the LBA request, the property owner's deposit will be used to pay the arbitrator's fee as indicated on the determination form.

Arbitrators are required by law to dismiss all LBA requests they determine do not meet the requirements of the law. In the event that a case is dismissed, other than when there are delinquent taxes on the property, the arbitrator may charge up to the total allowable fee and the property owner may not receive a refund of their deposit. LBA requests are required to be dismissed for the following reasons:

• The owner or agent did not file a notice of protest under Chapter 41.
• Taxes on the subject property are delinquent for any prior year or were not paid before the delinquency date.
• The owner or agent has not delivered written notice to the ARB chair, the chief appraiser and the taxpayer liaison officer as required by Tax Code Section 41A.015(b)(1).
• The owner filed the LBA request earlier than the 11th day or later than the 30th day from the date notice of the alleged violation was delivered to the ARB chair, the chief appraiser and the taxpayer liaison.
• The ARB or chief appraiser delivered a written statement to the owner by the deadline pursuant to Tax Code Section 41A.015(b)(2).
• Litigation was filed before the LBA request was submitted that involves the same issues for the same properties in the same tax year as addressed in the LBA request.
• The request does not involve a matter described in Tax Code Section 41A.015(a)(1)-(7).

Division 1 – General Rules

• §9.4201 Scope and Construction of Rules; Computation of Time
• §9.4202 Definitions
• §9.4203 Prohibited Communications Regarding Pending Arbitrations
• §9.4204 Filing Requests for Binding Arbitration and Deposit Payments
• §9.4205 Agent Representation in Binding Arbitration
• §9.4206 Appraisal District Responsibility for Processing Request
• §9.4207 Comptroller Processing of Request
• §9.4208 Withdrawing a Request
• §9.4209 Refund and Arbitrator Fee Processing
• §9.4210 Forms
• Form AP-219, Property Owner Request for Regular Binding Arbitration (PDF)
• §9.4211 Communication with Property Owner, Property Owner's Agent, ARB, Appraisal District and Arbitrator
• §9.4212 Arbitration Proceedings
• §9.4213 Substitution of Arbitrator Assigned to Arbitration Hearing

Division 2 – Limited Binding Arbitration for Procedural Violations

• §9.4220 Request for LBA,
• §9.4221 LBA Deposit
• §9.4222 Comptroller Appointment of Arbitrators for LBA
• §9.4223 Dismissal for Lack of Jurisdiction
• §9.4224 LBA Award
• §9.4225 Correction of Procedural Violations
• §9.4226 Payment of Arbitrator Fees