The Travis Central Appraisal District is investigating Tesla’s property values after a $1 billion reduction in appraisal for their Gigafactory in East Austin.
AUSTIN, Texas — The Travis Central Appraisal District is taking a closer look at the value of Tesla’s headquarters, east of Austin, after the company protested their property appraisal, knocking off more than $1 billion of its value.
In July, the TCAD appraised that facility at $4.6 billion. After protesting, an appraisal review board returned with a new property value for the Gigafactory of $3.4 billion.
On Thursday, the Travis Central Appraisal District Board of Directors voted to authorize the chief appraiser to file a lawsuit against Tesla. That authorization does not automatically create a lawsuit though, it just gives the board the authority to move forward with one if they choose to.
Chief Appraiser Leana Mann released this statement after the decision this week.
“The core foundation of the property tax system is that every property owner pays their fair share of the tax burden. When a decision by the Appraisal Review Board undermines that premise, the District has an obligation to all Travis County property owners to fight for fairness and equity in the system.”
TCAD told KVUE they’re currently investigating Tesla’s property values to find out if the new appraisal value is accurate. They also said they should be receiving a letter from the appraisal board with the official market value of the property soon. Once that is received, they’ll have 60 days to file a lawsuit if they choose.
For context, last year the TCAD Board of Directors received authorizations to file lawsuits against 23 accounts, but of those, only one lawsuit was actually filed.
Travis County looking into Tesla’s tax rebate contract
All of this is happening at the same time Travis County leaders are also looking into Tesla and their compliance with a tax rebate contract they have with the county.
It’s a multi-million dollar deal that was agreed upon back in 2020 for Tesla to receive a rebate on yearly property taxes.
To qualify for the tax break, they’d have to meet several requirements like hiring a certain number of Travis County residents and giving back to local nonprofits and schools. Travis County leaders say that no rebates have been paid so far, so they’re taking a closer look at the agreement.
Travis County Commissioners like Margaret Gomez want to make sure that Tesla upholds their end of the deal and if they will offer the tax incentive. This all comes as the county is in discussions about increasing property taxes for residents.
“If they’re not going to you know, help us by hiring our people and training them and paying them good wages and good working conditions, then I’m not interested in having a relationship with that company,” Gomez said.
KVUE has reached out to Tesla for a comment on new property value appraisal and potential lawsuit but have not heard anything back yet.