Relating to the authority of an owner of property that qualifies for an exemption as a historic or archeological site to protest the allocation of the appraised value of the property between the land and the improvements to the land.

Contracts

• Tax Consultant Engagement Letters: Review agreements with third-party property tax agents. Scope of work must explicitly include the authority to protest value allocation (Sec. 41.41(a)(9)), not just total market value.
• Triple Net (NNN) Leases: For historic commercial properties, landlords must utilize this protest mechanism to minimize pass-through tax expenses. Failure to protest an unfavorable allocation could expose landlords to tenant audits regarding "commercially reasonable" management of operating expenses.

Hiring/Training

• In-House Tax Counsel: Staff must be trained to analyze assessment notices for "value shifting"—specifically where the Appraisal District lowers the exempt improvement value but aggressively raises the taxable land value.
• Appraisal Experts: Retain appraisers capable of performing "encumbered land valuation." They must be able to quantify how historic restrictions lower the "Highest and Best Use" of the underlying land.

Reporting & Record-Keeping

• Notice of Protest (Form 50-132): When filing, you must specifically identify the protest ground regarding the allocation of value between the structure and the land.
• Evidence Files: Maintain records of vacant land sales that are subject to similar preservation easements or zoning restrictions. You cannot use standard commercial land comps; you must use "restricted" land comps.

Fees & Costs

• No New Fees: There are no new filing fees.
• Budget Impact: This is a cost-reduction tool. Successful protests will lower the taxable basis of the non-exempt portion of the property (the land), directly reducing Tax Operating Expenses (OpEx).