Rahul B. Patel

In fact, from San Antonio to California to the East Coast, there is ample evidence that a hefty portion of the affordable housing shortage across the country is self-inflicted, with devastating results.

As developers content for the most desirable urban real estate for their new brands, should they consider this tool?

Patel says hotels and other travel related companies will 'definitely' invest the corporate tax cuts in additional employees, because hospitality is a very people-based industry.

The best time to talk about how to handle the inevitable downturn is when times are good. Even better, hoteliers should really be planning for the next market downturn before they even purchase or build a hotel.

“Planning for a market downturn is one of the most important critical steps, and hotel owners don’t spend enough time on it or plan for it at the onset,” said Rahul Patel, managing partner of law firm Patel Gaines.

Hitting them with a property tax hike now seems a lot like kicking them while they’re down.

Two law firms with experience in the lodging industry are teaming up to support hotel owners in the wake of massive destruction caused by flooding and winds from hurricanes Harvey and Irma. Texas-based Patel Gaines and Florida-based Farrell & Patel are working together to ensure that hoteliers receive just and fair treatment of their property damage claims by the insurance industry.
“Each of our firms has done huge amounts of work in the hospitality industry,” said Rahul Patel, managing… Show more

Two law firms with experience in the lodging industry are teaming up to support hotel owners in the wake of massive destruction caused by flooding and winds from hurricanes Harvey and Irma. Texas-based Patel Gaines and Florida-based Farrell & Patel are working together to ensure that hoteliers receive just and fair treatment of their property damage claims by the insurance industry.
“Each of our firms has done huge amounts of work in the hospitality industry,” said Rahul Patel, managing partner of Patel Gaines. “I literally grew up in my parents’ hotels. Our two law practices are very involved with the Asian American Hotel Owners Association (AAHOA) and the Texas Hotel & Lodging Association, among others. So, we’re keenly aware of the legal and insurance issues so many in the industry are now facing. They know us and our track record well.” Show less

“We need folks in Washington to know that our industry housed people, allowed them in at maximum capacity during this period,” Patel said. “We were the first line of defense during this storm, but it will take a collective effort… to ensure a portion of those funds are allocated to lodging, or it will be earmarked to those with louder voices. Homeowners, public schools, roads, apartments… all of it was under water and is now asking for relief.”

National Press Publication, USA Today, runs piece by Rahul Patel on property tax reform.

Businesses and property managers are usually the only taxpayers who can afford the costs of arguing their valuation. This creates a perfect opening for the common talking point that homeowners are forced to carry the burden while businesses fight their own appraisals. But it’s the flawed process that forces businesses to fight for fairness and accuracy in the first place.

Property taxes are a red-hot topic this summer across Texas.

More than 20 related bills have been filed for the Legislature’s special session. Efforts to legislate tighter limits on how local property taxes can increase without a public vote have sparked heated arguments.

But a fundamental problem — the appraisal system — has been largely ignored. In fact, our state’s deeply flawed mass appraisal process is a major driver of the rapid increase in tax bills.

Read more here:… Show more

Property taxes are a red-hot topic this summer across Texas.

More than 20 related bills have been filed for the Legislature’s special session. Efforts to legislate tighter limits on how local property taxes can increase without a public vote have sparked heated arguments.

But a fundamental problem — the appraisal system — has been largely ignored. In fact, our state’s deeply flawed mass appraisal process is a major driver of the rapid increase in tax bills.

Read more here: http://www.star-telegram.com/opinion/opn-columns-blogs/other-voices/article162984203.html#storylink=cpy Show less

In addition, before we talk about rates, fixes, caps or anything else, we need to strengthen the requirements for serving on an appraisal review board. The boards are typically composed of retired Texans with little or no experience in real estate, cap rates, expense ratios, national debt and lending trends. That needs to change.

Publication in one of Texas' largest newspaper publications on the Property Tax appraisal system, the process, and what we can do to fix it.

Managing Partner, Rahul B. Patel was interviewed by WOAI News Radio on how to handle the next step, i.e. litigation, if you are not satisfied with your ARB results.

Real estate and property tax law firm Patel | Gaines is counting on its future office building to do more than provide extra space. The firm's partners hope it will change the way people look at law firms.

The firm, which represents many types of real estate clients, is stepping into the development game with the announcement of a 20,000-square-foot mixed-use building at 2030 N. Loop 1604 W.

Patel | Gaines hired Chesney Morales Partners Inc. to design the project and Metropolitan… Show more

Real estate and property tax law firm Patel | Gaines is counting on its future office building to do more than provide extra space. The firm's partners hope it will change the way people look at law firms.

The firm, which represents many types of real estate clients, is stepping into the development game with the announcement of a 20,000-square-foot mixed-use building at 2030 N. Loop 1604 W.

Patel | Gaines hired Chesney Morales Partners Inc. to design the project and Metropolitan Contacting Company to oversee construction. Initially, Patel | Gaines will occupy 5,500 square feet of the building and lease the rest to what partner Rahul Patel calls “hip tenants.”

“The types of retail tenants we’ll have won’t be normal. We want hip,” Patel said. “Places like a high-end men’s hair salon, a local coffee shop, something that will attract hip, young people.”

The law office space will also be atypical, said Patel, who hopes the aesthetic will be more similar to Google or an Austin startup than a traditional law firm. One such design idea is an interior vertical garden.

Patel said the purpose of all this is to change the way clients and guests think about law firms.

“We really want to work hard to break down that barrier,” he said. “In most law firms, you’ll see all these diplomas on the walls. I have two diplomas in my office off in the corner. Most stuff on my wall is Spurs stuff, pictures of me running marathons, books I've read, but not even law books. All we’re doing is providing a service that will help you do business. It doesn’t make us any different just because we have a degree.”

Patel | Gaines was recently named one of the Alamo City area's 75 Best Places to Work by the San Antonio Business Journal, and with the firm’s new office, they hope to attract young, smart and energetic people.
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San Antonio has long been recognized for its affordability, but as property values continue to soar, an increasing number of businesses and landowners are reevaluating whether the city is as easy to do business in as it once was.

At an event hosted by Patel | Gaines and the San Antonio Business Journal, business leaders discussed the challenges that come with rising property tax bills, higher interest rates, rising construction costs and filling commercial space vacancies, local business… Show more

San Antonio has long been recognized for its affordability, but as property values continue to soar, an increasing number of businesses and landowners are reevaluating whether the city is as easy to do business in as it once was.

At an event hosted by Patel | Gaines and the San Antonio Business Journal, business leaders discussed the challenges that come with rising property tax bills, higher interest rates, rising construction costs and filling commercial space vacancies, local business leaders hashed out what San Antonio's evolving business climate could look like if property values continue to climb. Show less

The Other Side of the Property tax argument.

Managing Partner, Rahul Patel interviewed and spotlighted on property tax appraisal theory.

Managing Partner, Rahul Patel, was interviewed by KENS 5 regarding a lawsuit that Patel Gaines, PLLC in conjunction with Desouza Law, is handling.

These awards are among the most important ones we bestow because they call attention to the fact that a community needs a constant stream of leaders coming up today to stay strong and relevant in the years to come. Recognizing the 40 Under 40 gives the business community — our readers — a snapshot of the incredible young talent we have in San Antonio as well as a glimpse into the future of our city.

The legal team at Patel | Gaines recently handled a federal case out of Tennessee on a complex ADA matter. The federal judge in that case issued a 16-page memorandum in support of our motion and the case was ultimately dismissed for lack of standing and mootness.

Over the past few years many of you have heard a great deal about a new piece of legislation that was put into place that significantly affected both the lodging and multi-family industries. The Department of Justice made a major change to the Americans with Disabilities Act (“the ADA”), which now requires a pool lift (or means of entry) for its guests and residents. The new regulations mandate that all pools and spas have at least one means of access – which means installing pool lifts that… Show more

Over the past few years many of you have heard a great deal about a new piece of legislation that was put into place that significantly affected both the lodging and multi-family industries. The Department of Justice made a major change to the Americans with Disabilities Act (“the ADA”), which now requires a pool lift (or means of entry) for its guests and residents. The new regulations mandate that all pools and spas have at least one means of access – which means installing pool lifts that are permanently affixed to the pool deck. The new requirements for all newly constructed and existing pools are meant to ensure that going forward, people with disabilities can enjoy the same activities as everyone else. However, with all new laws, there are unintended consequences. Show less

The oil and gas industry has provided pleasing economic relief to many areas across South Texas; however, with the growth and demand, certain unintended consequences are also becoming more prevalent. As business and demand in south Texas grows, the potential for you or your business to get hit with a lawsuit or fall prey to predatory practices have also increased. Since the oil and gas industry’s enterprises are rooted in the goods and services industry, understanding the protections afforded… Show more

The oil and gas industry has provided pleasing economic relief to many areas across South Texas; however, with the growth and demand, certain unintended consequences are also becoming more prevalent. As business and demand in south Texas grows, the potential for you or your business to get hit with a lawsuit or fall prey to predatory practices have also increased. Since the oil and gas industry’s enterprises are rooted in the goods and services industry, understanding the protections afforded by the Texas Deceptive Trade Practices Act is paramount in understanding the both the protections and the pitfalls your business faces as it grows.

To provide some brief history, in 1973, the Texas legislature passed the Texas Deceptive Trade Practices Act (DTPA).

So how does this law work and how does it affect your business? The intent of this law is that it allows the consumer to recuperate any damage and attorneys fees if a provider of goods or services commits an infraction of the DTPA. A violation of DTPA applies to false, misleading and deceptive trade practices in association with the transaction of a good or service. Thus, not only is it an important tool that protects you and your business as you engage with contractors, agents, and service providers for your business it brings up potential issues for you as the provider as well. Thus, as your agents and employees sell products and services in the field it is ever more vital to ensure that they material, information, and promises they make do not violate the DTPA. Proper training, guidance, review of your print material and contracts is increasingly important as your business grows.

As business owners, always remember to be vigilant about creating, implementing, and enforcing good, sound business practices to avoid the business pitfalls.

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The Texas Constitution promises that all taxation “shall be equal and uniform.” Although guaranteeing equal and uniform taxation, property taxes in Texas are assessed based on an appraised value of the property, as determined by an elected political official in each of the states’ 254 counties. To ensure that taxpayers can enforce this right in the face of sometimes greatly divergent appraisals, the Texas Legislature created two statutory mechanisms that taxpayers can use to appeal the property… Show more

The Texas Constitution promises that all taxation “shall be equal and uniform.” Although guaranteeing equal and uniform taxation, property taxes in Texas are assessed based on an appraised value of the property, as determined by an elected political official in each of the states’ 254 counties. To ensure that taxpayers can enforce this right in the face of sometimes greatly divergent appraisals, the Texas Legislature created two statutory mechanisms that taxpayers can use to appeal the property valuation determined by their county’s appraisal district. The first, §42.25, is a remedy for an excessive appraisal, the other, §42.26, is a remedy for unequal appraisal. Thus, even if a tax payer’s property is appraised appropriately under one method, they may still lower their property tax assessment if they show that the median appraised value of a reasonable number of comparable properties around them, appropriately adjusted, are appraised lower than they are.

A current court case in Harris County, In re: Baybrook Mall, LLC, reveals that Texas courts continue to have difficulty applying these remedies appropriately. Show less

H.B. 585–Summary of Appraisers’ Accreditation and Continuing Education Requirements

On June 14, 2013, the 83rd Texas Legislature adopted House Bill 585 (“H.B. 585”), which amends a variety of statutory schemes related to ad valorem taxation. Specifically, H.B. 585 provides a variety of accreditation and continuing education requirements for both chief appraisers and members of appraisal review boards.

Chief Appraisers:
§ 1151.160 of the Texas Occupations Code provides that a… Show more

H.B. 585–Summary of Appraisers’ Accreditation and Continuing Education Requirements

On June 14, 2013, the 83rd Texas Legislature adopted House Bill 585 (“H.B. 585”), which amends a variety of statutory schemes related to ad valorem taxation. Specifically, H.B. 585 provides a variety of accreditation and continuing education requirements for both chief appraisers and members of appraisal review boards.

Chief Appraisers:
§ 1151.160 of the Texas Occupations Code provides that a registered professional appraiser must obtain the “highest level of certification established by the commission.” H.B. 585 amends § 6.05, which gives substance to § 1151.160; H.B. 585 requires that chief appraisers possess one of the following professional licenses:

1) MAI professional designation from the Appraisal Institute;
2) Assessment Administration Specialist (AAS);
3) Certified Assessment Evaluator (CAE); or
4) Residential Evaluation Specialist (RES) professional designation from the International Association of Assessing Officers.

§ 151.1581 of the Texas Occupations Code requires appraisal commissions establish continuing education programs for chief appraisers. H.B. 585 amends these continuing education requirements by mandating that chief appraisers complete at least two hours of coursework in professional ethics. Additionally, H.B. 585 requires that at least half of the total hours required by appraisal commissions cover topics in § 1151.164 of the Texas Occupations Code, which includes ethics topics such as independence from political pressure, relevant conflict-of-interest laws, and ethical standards imposed by the Uniform Standards of Professional Appraisal Practice. Show less

Patel Gaines was highlighted in an ADA Lawsuit Publication. Managing Partner Rahul Patel was quoted as saying "Businesses need to be aggressive and vigilant in order to avoid certain predatory litigation from impacting their business."

Article that sheds a different light on the oil and gas boom in South Texas. Much of the focus has been on the large oil and gas companies and their impact on the Texas market, however, this article sheds some light on the local business owners that are helping to feed the boom.

Recently a Texas state court of appeals ruling that a hotel does not have to pay sales tax on their past purchase of "consumable" items furnished to hotel guests, such as shampoo, soap, notepads, pens, etc. became final. The case, on appeal for a number of years, was originally brought by the former operators of the Red Lion hotel in Austin for sales tax paid between 1998 and 2002. Consumables often comprise between 2% and 10% of a hotel’s room revenue. After initially indicating an appeal… Show more

Recently a Texas state court of appeals ruling that a hotel does not have to pay sales tax on their past purchase of "consumable" items furnished to hotel guests, such as shampoo, soap, notepads, pens, etc. became final. The case, on appeal for a number of years, was originally brought by the former operators of the Red Lion hotel in Austin for sales tax paid between 1998 and 2002. Consumables often comprise between 2% and 10% of a hotel’s room revenue. After initially indicating an appeal would be filed, the Comptroller let the deadline pass without further appeal.

Hotels may be eligible for a refund on sales tax paid on consumable items, and THLA has partnered with a law firm to provide services for members in processing claims. Show less

Combs v. Roark Amusement and Vending, L.P., No. 11-0261 (Tex. – March 8, 2013)

Facts: Roark Amusement and Vending, L.P. (“Roark”) provided a service, whereby, it placed coin-operated arcade machines in restaurants, malls, and retail centers in Texas. The objective of the machine was for customers to direct a crane in an attempt to collect a toy prize. Under the Texas Tax Code this service is not subject to a sales tax. Roark paid a sales tax on the items that were placed as prizes in… Show more

Combs v. Roark Amusement and Vending, L.P., No. 11-0261 (Tex. – March 8, 2013)

Facts: Roark Amusement and Vending, L.P. (“Roark”) provided a service, whereby, it placed coin-operated arcade machines in restaurants, malls, and retail centers in Texas. The objective of the machine was for customers to direct a crane in an attempt to collect a toy prize. Under the Texas Tax Code this service is not subject to a sales tax. Roark paid a sales tax on the items that were placed as prizes in the arcade machines. Roark sought a refund for the sales tax paid on the purchase of the prizes used to stock the machines pursuant to the Texas Tax Code’s sale-for-resale exemption.

Summary: The Supreme Court of Texas ruled in favor of Roark and ordered that the Texas Comptroller owed refund of sales tax dollars paid by Roark on the prizes used to stock its coin-operated arcade machines. The Court ruled broadly in favor of the taxpayer, stating that anyone who buys or acquires property with the intent to transfer that property to a customer qualifies for the exemption from state sales tax. This opinion could have an important affect on other potential refund claims made by hotels, government contractors, and other exempt service businesses.
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Natural Gas Pipeline Company of America v. William Justiss, Darelene Justiss, Joseph Justiss, Tommy Alspaugh, Judy Alspaugh, Joe Denton Mashburn, Christine Mashburn, Joe Donald Mashburn, and Judy Mashburn, No. 10-0451 (Tex. – December 14, 2012)

Facts: Natural Gas Pipeline Company (“NGPC”) operated a compressor station and exhaust fumes from its stacks caused an apparent nuisance, for both noise and odor, to various plaintiffs’ property. Plaintiffs brought action and were awarded damages… Show more

Natural Gas Pipeline Company of America v. William Justiss, Darelene Justiss, Joseph Justiss, Tommy Alspaugh, Judy Alspaugh, Joe Denton Mashburn, Christine Mashburn, Joe Donald Mashburn, and Judy Mashburn, No. 10-0451 (Tex. – December 14, 2012)

Facts: Natural Gas Pipeline Company (“NGPC”) operated a compressor station and exhaust fumes from its stacks caused an apparent nuisance, for both noise and odor, to various plaintiffs’ property. Plaintiffs brought action and were awarded damages for the diminution in value of their property. The Supreme Court of Texas focused on the testimony of the individual property owners’ as to their property value. The Supreme Court of Texas remanded the case to the trial court for a new trial on liability of damages.

Summary: The Texas Supreme Court addressed the question of whether the testimony of a property owner is sufficient in determination of market value. The Property Owner Rule in Texas establishes that a property owner is in fact qualified to testify as to market value. However, the Court insists that the testimony must meet the “same requirements as any other opinion evidence” that is offered before this Court. As a result, the Court insisted that a property owner’s testimony could not be merely intrinsic or based upon some other speculative value of the property. The Court also recognized that a business owner’s conclusory or speculative testimony of lost profits would not be supportive of a diminution in market value. The decision is important because the Court held for the first time that a property owner’s valuation testimony is subject to similar standards of evidence as expert opinion testimony. The Supreme Court remanded the case to the trial court for a new trial on liability and damages.
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AHF Arbors at Hunstville I, LLC v. Walker County Appraisal District, 55 Tex.Sup.Ct.J. 855, 2012 WL 2052948 (Tex – June 8, 2012)

Facts: In 2003, AHF Arbors at Huntsville I, LLC (“Arbors LLC”) applied to the Walker County Appraisal District for a tax exemption under Tax Code Section 11.182 for the apartment complex it owned. The sole member of the Arbors LLC was Atlantic Housing Foundation, a non-profit corporation that was certified as a Community Housing Development Organization… Show more

AHF Arbors at Hunstville I, LLC v. Walker County Appraisal District, 55 Tex.Sup.Ct.J. 855, 2012 WL 2052948 (Tex – June 8, 2012)

Facts: In 2003, AHF Arbors at Huntsville I, LLC (“Arbors LLC”) applied to the Walker County Appraisal District for a tax exemption under Tax Code Section 11.182 for the apartment complex it owned. The sole member of the Arbors LLC was Atlantic Housing Foundation, a non-profit corporation that was certified as a Community Housing Development Organization (“CHDO”) by the Texas Department of Housing and Community Affairs (“TDHCA”). The appraisal district denied Arbors’ application because it was not a CHDO and because it did not file an audit with the appraisal district as required by Tax Code Section 11.182(g). Arbors sued the appraisal district, and the district court found for the appraisal district. The court of appeals affirmed the district court’s determination based upon the failure of Arbors to submit an audit to the appraisal district, and Arbors appealed to the Supreme Court of Texas.

Summary: Texas Tax Code Section 11.182 provides that an organization is entitled to a property tax exemption for real property that is owned for the purpose of providing housing without profit to a low-income or moderate-income individual or family.

The Court held that the failure of a CHDO to obtain an audit is fatal to its qualification to receive an exemption, however, failure to provide the audit to the TDHCA or the district was not grounds for disqualification. The Court held that the Atlantic Housing Foundation had equitable title to the apartment complex because it maintained complete control over Arbors and thus had the power to compel transfer of legal title to all of Arbors’ property. As a result, the property tax exemption was imputed to Arbors pursuant to Tax Code Section 11.182(b) irrespective of the fact that the CHDO did not legally own the apartment complex at issue.
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Property tax expenses can have a huge impact on a hotel owner’s bottom line. Given the current economic climate, developers and owners must constantly monitor their property tax valuations in order to make a decision about whether to appeal the Notice of Appraised Value. Once the valuation is appealed, the owner must decide how to combat the excessive valuation. An overview of the common mistakes and misconceptions of appraisal districts can help hotel owners develop arguments for lower tax… Show more

Property tax expenses can have a huge impact on a hotel owner’s bottom line. Given the current economic climate, developers and owners must constantly monitor their property tax valuations in order to make a decision about whether to appeal the Notice of Appraised Value. Once the valuation is appealed, the owner must decide how to combat the excessive valuation. An overview of the common mistakes and misconceptions of appraisal districts can help hotel owners develop arguments for lower tax valuations.

Should I Appeal My Valuation?

In Texas, the appraisal districts maintain a statutory responsibility to value a property at its "market value" as of January 1st each year. A hotel owner should most definitely appeal if the appraisal district’s value exceeds the owner's estimate of the real estate’s market value (which is different than the market value of your hotel—your hotel encompasses more than just the land and improvements, and personal property). The following factors should be considered before making a decision to appeal:

1. Procedural and valuation laws are very stringent. For example, an owner should understand the definition of market value for property taxation and must know the deadlines. In most instances, failure to act before the statutory deadline will forever bar your appeal. Therefore, owners should discuss the procedures for appeal and the possibility of success with a tax consultant or attorney that is well versed in property tax appeals for hotels.

2. The costs associated with an appeal and the potential tax savings from such an appeal should be evaluated to ensure that the protest makes economic sense.

3. The practical aspects of the appeal must be considered, such as the time and resources required for the appeal and the documents needed to make an effective case to the appraisal district.

To read more, please see the publication dated March 2012 for the complete publication. Show less