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Property Tax Overview and Outlook. Hotel Association of North Texas Workshop October 12, 2012. About Popp Hutcheson PLLC. Founded in 1983, PH is the largest Property Tax Law Firm in the U.S. - PowerPoint PPT Presentation
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Property Tax Overview and Outlook
Hotel Association of North Texas WorkshopOctober 12, 2012
About Popp Hutcheson PLLC• Founded in 1983, PH is the largest Property
Tax Law Firm in the U.S.• PH combines the knowledge and expertise of
our attorneys, appraisers, engineers, and MBA's to provide comprehensive representation for our clients.
• PH provides true full service representation: from informal appeals to district court trial
• PH specializes in hotel valuation; specifically the valuation approach of removing business value to establish the appropriate taxable value.
Discussion Items
•Tax Code Standards and Appeal Calendar •What is Taxable in TX?•How do the North Texas Districts
appraise hotels?•How should you Budget Taxes•2013 “Crystal Ball” Predictions
Property Tax Overview• Distinct Claims in Texas –Market Value– Equal and Uniform– Denial of an exemption– Other
• Texas Appeal Process– Deadline May 31st – or 30 days from appraisal
notice– Informal Hearing– Appraisal Review Board– District Court
How do the North Texas Districts appraise hotels?
Dallas/Denton – using Room Revenue Multiplier • Issues with RRM?– Implied expenses and cap rate the same for all?
Collin/Tarrant – using Direct Capitalization Approach• Issues with Direct Cap?– Intangible deductions and allowable expenses
How Should You Budget?Lean on professionals for inside knowledge• Ask about changes in appraisal staff• Ask about changes in models
Get your property’s valuation model• Have your professional apply your budget
numbers to a realistic model• Make realistic adjustments to model for
trends: Transactions Cap Rates Revenues
2013 Predictions
Expect higher valuations across the board▫Hotels are one of the most volatile
properties ▫We are moving from of “offensive” appeals
to “defensive” appeals▫Additional clarity from authorities may help
Appraisal Institute (Intangibles Course) Source Strategies Brand Report Trials?
