The House Ways and Means Committee met on October 14th for invited and public testimony on interim charges 3, 4 and 6, to receive an update on the Comptroller’s recent prediction of declining property values and to discuss growing student enrollment.
Charge 3: Study methods for improving the quality and uniformity of, and communications to taxpayers about, property tax appraisals.
Charge 4: Evaluate the impact of the transfer of administrative law judges from the Comptroller’s Office to the State Office of Administrative Hearings on the dispute resolution process.
Charge 6: Monitor the implementation of property tax appraisal and alternative valuation appeal reforms enacted by the 81st Legislature.
Key points:
- In 2010, property values declined in 2%. For 2011, the agency estimates residential values to drop 1%, industrial values to decline 6% and commercial valuations to drop 8%. In 2012, the Comptroller estimates residential values to increase 2% and a slight decrease in both industrial and commercial valuations.
- There appears to be a consensus that the John Otto bills enacted in 2009 are addressing issues as expected.
- General support for using the tax appraisal notice to educate consumer on how the appraised value is connected to tax rates.
- Discussion on consolidated property tax collections, some have opposed mandatory consolidation.
- The Texas Taxpayers and Research Association testified that it is working on a new appraisal notice bill, similar to the same bill from last session.
- There was no discussion of caps of any sort, nor of “reforming” tax rate calculations.
- The foreclosure problem was reviewed. It will be 2013 before all the foreclosures move through the system.
