The Property Tax Landscape from Alberta to Texas
Property Tax laws and regulations vary greatly between states and provinces, let alone countries. While there remain many similarities between Alberta and Texas, there are a number of fundamental differences that distinguish the two markets. One of the most notable differences is the organization of property appraisals at the local level. In Texas, property appraisal is determined at the county level, meaning each county operates its own appraisal district that is responsible for valuing property within its boundaries. Alberta does not rely on counties the same way; rather, property assessments are generally conducted by municipalities, which results in a less uniform administrative structure and assessment framework across the province. However, one similarity in the process between both markets is the use of third-party appraisal firms to assist with property valuation. Municipalities in Alberta sometimes choose to enlist the help of appraisal firms to prepare their assessments, especially if it is a smaller municipality. This can also occur in Texas and in fact is quite common for specialty assets or smaller counties.
The actual process to protest property reflects similarities and differences, as well. In Alberta, property owners have 60 days from the date the notice of assessment is mailed to file an appeal. As assessment notice mailing dates are determined independently by each municipality, appeal deadlines can vary significantly across the province. This creates an administrative burden for property owners in tracking and managing critical filing deadlines. In Texas, the protest deadline is more uniform across the state. While the statutory deadline is technically the later of May 15 or 30 days after the appraisal notice is mailed, most notices are issued on or before April 15, making May 15 the applicable deadline in the majority of the state.
Both markets have similar protest procedures, where evidence is exchanged prior to a formal hearing. However, the process differs greatly after a board order is issued. In Alberta, the Assessment Review Board (ARB) renders a decision to the property owner that may only be appealed to the Court of King’s Bench (judicial review) in a case where the ARB made a legal or jurisdictional error or failed to follow proper procedures. As a result, in the majority of cases, property owners must accept the decision issued by the ARB. In Texas, property owners have 60 days from receiving the board order to either arbitrate or litigate the decision, which is determined by the property’s appraised value. The opportunity for property owners to further protest their value provides great flexibility and makes the Texas property tax system more attractive by comparison.
Despite this being the case, the decision to move countries was not predicated on a better property tax system. Rather, it was influenced by the many cultural similarities between Alberta and Texas. In particular, their shared roots in entrepreneurship and cowboy culture made moving to the Lone Star State a natural transition. For businesses, property owners and nomadic tax consultants, the cultural alignment between both markets makes the transition more intuitive, even as the underlying tax frameworks differ.