LEANDER, Texas (KXAN) — Homeowners near Leander are suing the Travis Central Appraisal District, accusing the agency that determines home values for tax purposes of “unlawful valuation of property.”

The homeowners filed the lawsuit July 15 in Travis County District Court, claiming the appraised value of their home in 2021 — just over $3.8 million — near Lake Travis is more than the true market value. The lawsuit states the homeowners, “timely protested” the agency’s appraised value, and they went to a hearing with the Appraisal Review Board, the lawsuit said.

The lawsuit said the ARB’s ruling “established an unequal appraisal for the 2021 tax year,” and pursuant to section 42.25 of the Texas Tax Code, the homeowners are entitled to a “reduction of the value of the property as determined by the court.”

TCAD said in a statement — “all property owners have the right to protest their market values. Property owners who wish to appeal protest decisions made by the Appraisal Review Board, an entity that is independent of the appraisal district, have the right to do so in binding arbitration or District Court.”

According to TCAD records, the home’s appraised value in 2020 was just over $3 million, and the 2022 appraised value dipped to $2 million.

A TCAD spokesperson told KXAN the appraisal district isn’t facing any other lawsuits in 2022.