Print đź–¨

Senate Local Government met on September 14 to hear invited and public testimony on the following interim charges:

  • Property Tax Reform: Review the effect of Senate Bill 2 (86th Legislature), the Texas Property Tax Reform and Transparency Act of 2019, and related legislation passed by the 87th Legislature.  Make recommendations for further property tax reform and relief;
  • Appraisal Reform: Review the implementation of Senate Bill 63, House Bill 988, and other related legislation passed by 87th Legislature. Make recommendations to ensure appraisal guidelines are effective and taxpayers have enforcement mechanisms; and
  • Efficiency Audits: Study the concept of efficiency audits for cities, counties and special purpose districts and under what circumstances they should be performed. Evaluate whether efficiency audits provide Texans tools to combat wasteful government spending and report whether they are needed before local government tax ratification elections.

This report is intended to give you an overview and highlight of the discussions on the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

Opening Comments

  • Bettencourt – Property tax reform has been a long-term interest of mine; will discuss SB 2 and HB 3 in 86(R) which were important pieces of this
  • Bettencourt – Disappointed about half a dozen ISDs who are working to inflate their M&O after the state worked to compress it; includes Katy ISD, Fort Bend ISD, Leander ISD, Beaumont ISD, and Pflugerville ISD
  • Bettencourt – Most preposterous public policy to put this issue before voters without informing them their tax rates will rise; school trustees believe they can “play a trick”
  • Bettencourt – This is a hole we will need to legislatively plug in the future
  • Springer – Seeing some districts use opportunity to increase I&S and voters do not get a say; notes districts in Collin County have been doing this
  • Bettencourt – Reiterates HB 3 was passed unanimously
  • Eckhardt – Want to hear what local taxing entities are going through to fund important work; need to look at eroding state contribution and are unintended consequences
  • Bettencourt – Would agree, but look at the amount of federal contributions
  • Eckhardt and Bettencourt discuss this further
  • Hall – Will be unintended consequences like the misuse of the referendum vote; hopefully is a wakeup call to voters

 

Property Tax Reform: Review the effect of Senate Bill 2 (86th Legislature), the Texas Property Tax Reform and Transparency Act of 2019, and related legislation passed by the 87th Legislature.  Make recommendations for further property tax reform and relief.

 

Appraisal Reform: Review the implementation of Senate Bill 63, House Bill 988, and other related legislation passed by 87th Legislature. Make recommendations to ensure appraisal guidelines are effective and taxpayers have enforcement mechanisms.

 

Shannon Murphy, Office of the Comptroller

  • Provides the committee with a presentation
  • Tax rate calculation/model forms are drafted by the Comptroller’s office and submitted
  • HB 1429 created a sample notice for proposed tax rate for smaller taxing units and special taxing units;
  • Provides an overview of no-new revenue rate which replaced “effective taxing rate”
  • HB 2723 directs truth and taxation and SB 1438 created emergency revenue tax calculation
  • Provided guidance for the implementation of these bills; working on some clarification
  • Created appraisal guidance following SB 2
  • Are now involved with reviewing ARB meeting procedures and surveys; has been a significant drop in surveys from 2019 to 2021
    • 2017 were 12k, 2018 were 12k, 2019 were 17k, 2020 were 4k, and 2021 were 5k
  • Bettencourt – Probably a sign there is some accessibility/process issue
  • ARB continues to have responses that indicates excellent/good well over fair/poor
  • Hall notes to Bettencourt some issue may be some misnomers with terms like “no new tax rate” need to determine how to structure in a way to make it meaningful to the individual
  • Bettencourt – Is now a portal that aims to give more transparency; your request is not far away
  • Springer – Issue is do not have a county tax rate, have an average
  • Hall – Is not easy, but maybe change what we call things reflects what it actually means
  • Springer – Track number of hearings/protests filed over last five years? Notes no shows are an issue; should be a penalty in there
    • Can pull that data
  • Hall – No shows are not an issue in terms of cost

 

Dale Richardson, Texas Department of Information Resources

  • Added transparency resources with valuable property tax information including appraisal district data
  • Bettencourt – Looking into demographics using this information? Want that info
    • Yes; most used larger counties of the state
    • Saw a huge spike August 8 that was likely a response from advertising
  • Bettencourt – Need to look at things since the liability on last year’s tax rates may not be useful
  • Bettencourt and Richardson discussed the minimal cost and resources for this service

 

Alex Fairly, Self

  • Businessman from Amarillo; have sued the city for a trial set the first week in October
  • City held a general obligation bond election for a new arena and civics center; did not pass
  • In May was a city ordinance to take on $260m in debt in order to move forward with the project
    • Would be the biggest tax note in the state’s history
  • In a single vote, city council voted to more than double ad valorum; planned to re-finance tax note with refunding bond
  • Amarillo is showing a road map in how to go around voters to get to a large amount of money
  • Bettencourt – If this type of process can happen, will be of consequence to the whole state; know the current I&S rate?
    • Do not know, is tricky
  • Bettencourt – Is a huge TAN for a city of this side; is extraordinary lengths to go around voter
    • Bettencourt discusses this further
  • Springer – They will never go out for a vote if they can abuse this process
  • Eckhardt – Is an example that should be looked at; are cases in which this process is not abused such as Travis County’s courthouse construction with a public private partnership
  • Hall – When the public takes a vote on something, that should be the end of it

 

Jordan Wise, Texas Association of Appraisal Districts

  • Association is grateful with the collaboration with stakeholders on SB 2; appreciative of the increase in transparency especially in terms of tax data webpages
  • Have heard more discussion on the no new revenue rate more than any other time
  • Members $4.1-$4.2m in posted/mailing costs to send out mailers to drive traffic to the tax webpages; would like more discussions on how to drive traffic electronically
  • Bettencourt – Notes some postcards do a better job than others; point is right need to look at other ways to drive people to it
    • Need to continue to look at appraisal reform
  • Bettencourt – Feedback on the ARB process?
    • Receive feedback from property owners and data shows most feel the process is fair
    • Have been some growing pains with legislation adopted last session
  • Bettencourt – Would like to see the top twelve appraisal districts on what is going through

 

Roland Altinger, Harris County Appraisal District

  • Up to 590 taxing districts in the county
  • Issues are not all plaintiffs specify opinion value, must estimate value not disputed, 30% of all settlements where value is disputed
  • Bettencourt – Is an estimate made of litigation results; advocating looking at five-year average?
    • Correct
  • Bettencourt – Seen major CADs that have put zero in actual truth in taxation line item
    • Would love uniformity to tweak this
  • Notes SB 2 set requirements for hearing deadlines; in 30 years have never been able to resolve all by thanksgiving as the statute says
    • Request 1m populations or more get an extension/exemption
  • Mailed 1.4m postcards are required by statute which are often viewed as junk mail; cost was $700k to Harris County alone
  • Suggesting eliminating the post card requirement and use internet/email instead
  • Suggest the removal of SB 2’s 3-term limit for ARB members; cannot speed up quality appraisal
    • Suggest adding teachers can be appointed to the ARB
  • Bettencourt – Like idea of electronic opt-in to notices and will look at the deadline issue; are paying enough to ARB members?
    • Wise – Roughly $200 a day and possible solution could be default single member panels
    • Richard – Pay $190-$220 within first couple years and increases by term; single panel opt-in would be good
  • Bettencourt – Want to get data on lapses
    • Richard – Can do 190 and now have 120; reiterates the idea to bring teachers on
    • Wise – Can do 65 and now have 52
  • Discussion about no show charge; members discuss how Florida charges $25
  • Bettencourt and Richard discuss potential restrictions for ARB members to consider
  • Springer – How much time does staff member take preparing for a protest?
    • Fort Bend depends on property type; 30-40 minutes
    • Richard – Resolve majority informally and preparation does not take a lot of time

 

Christina McMurry, Tax Assessor Collectors Association of Texas

  • Tax Assessor Collector for Randall County; SB 2 is a good first step and helped in educating the public
  • As of August 6, had no proposed tax rates for 12 taxing units in Randall County; had to send out post cards at that time and constituents ask timing changed to reflect real tax rates
  • Heard feedback that mailers were a waste of taxpayer money
  • Could have clarity on the portion of banked amount concerning the unused increment rate; Comptroller’s form does not include deduction if an entity has not used a portion
  • Bettencourt – Tell us how discussion with debt has been going in Amarillo? If they move on, can expect property taxes to go up
    • Currently expecting to see a decrease in their property taxes this year; correct

 

Dale Craymer, Texas Taxpayers and Research Association

  • Half property taxes are school, remainder are city/county/special district
  • SB 2 brings voters more into the decision-making process
  • Levy growth prior to SB 2 and HB 3 was about 6.5% and since has dropped to 4.7%
  • Average effective tax rate since 2007 seen modest rate creep; in 2019 and 2020 are taking out a “chunk” of increases
    • 2022 initial data shows school tax rates are 20% lower
  • Estimate growth of levy would have been $1.2m last year without the legislation
  • Bettencourt and Craymer discuss other beneficial property tax efforts in SB 8 and props 1 and 2
  • Feel debt taxes should be levied to repay voter approved debt; if was not voter approved should not be used
  • Suggest Comptroller’s guidance/worksheet on Chapter 26 is simplified into plan-language
  • Is no verification and oversight of these numbers; recommend they are review and errors are corrected for
  • Reconciliation is needed on estimates to calculate tax role
  • Ask to review the deminimis rate as some can exceed 3.5%
  • Number of jurisdictions are capping unused increment; suggest doing away with or only allow it based on the value that rate would have raised
  • Disaster provision eligibility is at least one property was damaged; suggest looking at if a jurisdiction was actually impacted by the disaster
  • Real-time website should be simplified and standardized; need to easily compare previous years’ bill to future bills
  • Hall – Notes things could be greatly simplified; would like to take a serious look at this
    • Hall and Craymer discuss this further
  • Bettencourt – In agreement
  • Eckhardt and Craymer discuss how the appraisal is not the tax rate
  • Eckhardt – Are predatory practices by some firms concerning appraisal value
    • Anything about 10% is capped; notes a personal example of this situation
  • Eckhardt – Perhaps the state pick up the activity of hosting/creating this simplified website
    • Would like uniformity and consistency
  • Bettencourt – Have the basis for this discussion
  • Eckhardt – Agree that debt is an appropriate avenue for the expansion of infrastructure; would like further discussion on this
  • Eckhardt – Would like to see TTARA take on calculation done by the tax institute combined state and local tax burden
    • Residential is relatively low, but established commercial is relatively high
  • Bettencourt – Property tax nationwide?
    • Are dropping a little faster in Texas and are dropping elsewhere

 

Bill Longley, Texas Municipal League

  • Have been some growing pains in the last few years for cities and counties
  • Have seen inflation numbers spike, the pandemic’s negative impacts, etc.
  • Appraised values have jumped dramatically and have exponential population growth
  • Appreciative of the hearing notice requirements in HB 2429
  • Could stand to see some clarification in the requirement proposed budget is required to be filed 30 days before the adoption of the tax rate
  • Would be helpful to change the prohibition budget hearing held on the same day as the adoption of the tax rate
  • Cities that calculate a deminimis rate can adopt a tax rate exceeding the voter approval rate and not have an election; suggest not having them not apply to the 71-day deadline
  • Reiterates the issue with the complication in the Comptroller’s worksheet
    • Paxton’s bill last session SB 1131 would have helped
  • Bettencourt – Lubbock and Austin went above voter approval rate; have a list who went above rate
    • Austin and Mesquite; was not aware of Lubbock
  • Bettencourt – Thoughts on the situation in Amarillo?
    • Want to preserve that important tool, but want to address that issue

 

James Quintero, Texas Public Policy Foundation

  • SB 2 was the most consequential tax bill passed in a generation
  • Large amount in ESF and school districts have a tremendous amount of fund balance monies
  • Whatever the legislature does must be complemented by tax reform; need to strengthen measures
  • Suggest changing language from voter approval tax rate election to tax election
  • Austin implemented a taxpayer impact statement; is something worth expanding
  • Support efficiency audits
  • HB 1869 related debts related to property; exemption for designated infrastructure designation should be eliminated
  • Rate equalization standard should be the same for school districts and everyone else at 2.5%
  • Those who are exempt to 3.5% should be subject
  • MenĂ©ndez- Aware of the safety allotment for schools? Is $9.72
    • Not aware
  • MenĂ©ndez – Need to be careful to not do electioneering at the ballot with this proposed language
    • Are manipulating the language at the ballot by de-accentuating legislature’s reforms
  • Hall – Need to find a way to have accurate ballot language
    • Could include a cost estimate for voters
  • Hall – Need to get appraisals closer to real world numbers
    • Not opposed and are working on appraisal reforms; have focused on rates/revenues
    • Recommend legislature permanently compress ISD M&O so state takes on a larger share
  • Springer – Thoughts on additional consumption tax, homestead exemption percentages?
    • Exemption is a mandate that can eroded at the local level;
  • Springer – Need to consider if there are other areas to look at concerning taxes
    • Texas economy will continue to generate revenues above state spending limit
    • In 10 years can completely get rid of the M&O tax and then tackle what items should be included in sales tax regime
  • Menendez – TPPF has work on criminal justice reform, spoke yesterday on homelessness & treatment; if we’re going to eliminate M&O incrementally, are we going to increase basic allotment, get schools up to basic security standard? Concerned about that
  • Menendez – Could also be a way to level playing field for schools that are property rich and property poor; have made cuts to public schools in the past
  • Menendez – The reason we use bond elections to pay for buildings, etc., is to pay for things that will take a long time, cheapest way to do it; if you want us to be efficient, why haven’t you looked at the dual public education system in Texas, why do we have two schools across the street from each other? Doesn’t seem efficient to have existing public schools and brand new charter schools across the street

 

Christy Gessler, Texas Realtors

  • Texas Realtors has supported many of the bills related to this charge because they improve the tax process, SB 2 has done much to make system clearer and more efficient
  • 2022 is the year we’ve been waiting for to see how the system plays out, still more to be seen; anecdotally have heard some local govs are proposing property tax reductions
  • Have seen media reports that local budget proposals are cutting the tax rate, but not explaining that this won’t lead to lower tax bills for property owners
  • Texas Realtors is continuing to educate the public on the property tax system & trying to eliminate confusing tax levies v. tax rates arguments
  • Oppose the politicization of appraisals; oppose election of ARB members
  • Bettencourt – Could survey their members on what is the best method to get information to them?
  • Zaffirini – How united are your members on this issue?
    • Are a group of over 70 associations and have a variety of opinions
  • Zaffirini – How united are they regarding caps or any other topics?
    • Typically get resounding support

 

James LeBas, TXOGA, Texas Apartment Association

  • Notes personal property tax bills have gone down
  • Want to keep focus on rate compression and keeping independents in the appraisal process
  • Total taxable value increases on residential properties have been increasing since 2013
  • Local option exemptions, additional over 65 exemptions, etc. apartments do not receive any of these benefits
  • The appraisal process may need additional tweaks, will bring recommendations later
  • Bettencourt – Notes increases in prices; are multiple issues happening at one moment in time
    • Been a big jump in taxes in order to raise the rent, appraisal and taxes go up
  • Zaffirini – Multifamily tax appraisals rising higher due to what?
    • May be beyond market; tax increase leads to rent increase leads to appraisal increase
  • Zaffirini – Recommendations on changes to the exemptions?
    • No; prefer rate compressions to exemptions
  • Zaffirini – Conclusions based on your data?
    • Highest rents in Texas are in Travis County and tremendous variation among the state; multifamily is rising more than homestead

 

Cheryl Johnson, Galveston County Tax Assessor Collector

  • Three ISDs in Galveston have increased their debt to where rates will go up tremendously; are issuing debt
  • Bettencourt – How many taken rate compression from M&O and did not pass through on the other side?
    • Have three who have
  • Galveston Island has one ISD that will show a tax decrease
  • Should include information in tax ceiling revenue which is not included anywhere; is not transparent and is creating a lot of excess debt
  • County is getting hit an additional $2m a year
  • Bettencourt – Are times when they are hitting an excess debt wall
  • Should put contact back to the central appraisal district rather than tax assessor collector
  • Is a lot of redundancy in; some local governments are not
  • Would like to combine
  • Should not be allowed to adopt a tax rate until they put all their information online
  • Suggest voter approved debt or debt that is paid off with less than 5 years
  • Bettencourt and Johnson discuss taxing situation in La Marque
  • Deminimis rate should be reform 30k to 10k and should remove petition requirement for small cities
  • Need to keep funding with compression
  • CAD staff and ARB panels should only be in the same room during hearings
  • Recommend redefining market value to cash value
  • Recommend lowering appraisal cap and extend to all real properties
  • Having issues with online protest and there is no way to request an informal
  • Appraisal hearing standards need to be standardized
  • Springer – I don’t know;
    • Would like to see appraisals every three years if your value went up

 

Public Testimony

Russel Schaffner, Tarrant County

  • One way for real property reform would be a tax flat dollar homestead exemption
  • Would be helpful to rework tax language to ensure it is in plain language
  • Would like to be involved in re-working the TNT calculation form; want to ensure the process does not get skewed
  • Bettencourt – Would welcome your help

 

Susan Spataro, Self

  • 3.5% is a good idea, but has been abused
  • Important ballot language tells the taxpayer what they are paying for
  • Concerned about the proliferation of government-like corporations
  • Federal funds have been a blessing and a curse
  • With all vacancies, should be a large fund balance that should not have been spent
  • Bettencourt – Notes Harris County should have a large fund balance and are other areas that have not cut back to the no new revenue rate
  • Zaffirini – Anything major you disagreed with regarding Travis County?
    • Austin put on a ballot language for project connect which was a 20% tax increase
    • The increase in property tax rate was over 20%
    • Was a reduction in school taxes, but the city wiped that out; estimates were widely off
    • Was one misrepresentation after another
    • Do not think you should adopt a flat rate

 

Joe Palmer, Self and Eliminate Property Tax

  • Despite efforts, property tax system is impossible to administer effectively and cannot be fixed
  • Ask to restructure Texas tax system to a 7% consumption tax
  • Would help existing homeowners and future homeowners

 

Adam Hanes, Conference on Urban Counties

  • Suggest simplifying the Comptroller’s worksheet by only including county incidentals
  • Property taxes are the main vehicle for the county’s budget
  • Bettencourt – Current membership has a separate hospital district? Interested to see if CARES funds went to the hospital district and what went to county
    • 5 or 6; some went to counties, some went to hospitals, some shared
  • MenĂ©ndez – Cost of counties holding inmates awaiting transfer?
    • Is a significant cost
  • Bettencourt – Criminal Justice will have this discussion upcoming
    • Is a TDCJ and a state hospital issue
    • Hall reiterates this issue needs to be worked on
  • Springer – Want to think outside the box, go get mental health professionals from other parts of the state because we are not going to grow our own fast enough (may be able to give them one time relocation cost)
  • Springer – Need to address and find difficult solutions to address, 10-20% of his jails in his district are filled with people waiting on competency
    • Hanes – Agrees there needs to be a solution
  • Springer – all taxpayers are our taxpayers
    • Hanes – Take existing funds, have already appropriated funds to DSHS to run state hospitals, send that money sitting there to counties on a per inmate basis
  • Bettencourt – Cautions against being in politics vs reality, focus on facts
    • Hanes – Will continue to focus on facts

 

David Billings, Mayor of Fate Texas

  • Community asks him how to reduce taxes but then lists requirements of maintaining state parks and infrastructure
  • Reduced property tax this year, including increasing senior tax exemptions but it comes at a cost
  • Costs higher in road builds, had to increase maintenance budget by 30% just to do the same work as last year
  • Hall – what is impact of low tax rate on fast growth city?
    • Delays road repairs, etc.

 

Shannon Murphy, Property Tax Assistance Comptroller Office

  • Continue review of handouts from earlier this morning
  • Summary of HB 988, received to date over 240 ARB hearings
  • Received 75 arbitration requests
  • A majority of request have been submitted by two different agents, a property owner can submit a request for multiple properties they own but not the other way around
  • Bettencourt – May have to look at issues of ability to get a hearing, 7 remedies may not be enough to cover
    • Working on rule and it has not made its way to her yet
  • SB 63 PTAD electronic delivery of information, not having such a paper intensive property was helpful
    • Also got distance learning for ARB training
  • Paxton – Asked about different formats in training?
    • There were modules on own time, zoom calls were more like a webinar
    • Provided stats on method of use, will be interesting to see if it changes over time
  • Slide 25 are items handed by locals, SB 916 is listed on slide 26
  • SB 1919 allows ARB to conducted by video conference, have received feedback the technology doesn’t always work well so they will monitor if it improves
  • HB 2941 local administrative judge appointing ARB
  • Bettencourt – could there be a PSA about openings in ARB

 

Jordan Wise, Texas Association of Appraisal Districts

  • Will continue to follow the law as dictated to by the legislature
  • Ability to remind via email or text message, will continue to use technology to increase transparency and enhance customer service
  • Not losing right to appeal beyond ARB, need to educate community on that ability
  • Bettencourt – Asked about customers standing on own, how to treat multiple cases
    • Need a request for each one, impression is that it is the statutory interpretation from team
    • Bettencourt – Wants to look at that
  • Mandatory informal meetings before ARB feels like good policy, working to ensure that happens uniformly
  • Discussion earlier about appraising every 3 years, code says “may”
    • Could have a situation where there is uniformity issues
  • Zaffirini – Are some waiting more than a year for their protest to be heard, ways to improve, wants to know about judge appointments and should it be revisited
    • Certainly hope not, working to make them timely
    • Would be open to have the discussion
    • Regarding judge appointment may have created a greater administrative burden
  • Zaffirini – Taxpayer liaison officers offering assistance, are some volunteers?
    • In one area they received a stipend, not sure of all counties
    • Many ALJs can appoint commissioners, they have done that
    • Will ask members about their reaction to providing clerical services

 

Marya Crigler, Travis County Appraisal District

  • Piecemeal process, concern with having to send email each time could mean there would be 25 different email
    • Taxpayers become numb after 3 and annoyed after 5
    • Would like information all in one system
    • Bettencourt – We delay notification until that is all a reality?
    • Yes
  • Use of third-party vendor in alert so they are not flagged as spammers, recommends using DIR to help assist
  • Would recommend simplify language on post card to make it more friendly, and website contains a lot of information so simplify it for taxpayers, maybe do a PSA program
  • ALJ has struggled, has not been able to fully staff 180-200
  • Will quote HD Chambers when he was looking for people but had ability to pay for them, it may be water under the bridge
  • Struggling as an appraisal district
  • 100% of informal done over the phone, also split out in single member panels for next step
    • Number one compliant is taxpayers are waiting so long to get in
    • Its an issue of scope, capacity and time
  • Bettencourt – Nowhere near a 40-minute hearing in Ft. Bend
    • Creates severe dissatisfaction
  • Not able to find people to fill positions
  • See increase in volume of protest and increase in homestead exemption, maybe a 62% increase
    • Property owners who did not file in the past see the benefit
    • Notes it is a prior year exemption as well

 

Ray Head, Texas Association of Property Tax Professionals

  • Think most CADs function effectively and efficiently
  • Number of taxpayer protections already in place
  • HB 988 may need some perfecting changes
    • Current causes to file for Limited Arbitration are narrow and should be expanded
    • Removal of ARB chair undermines ability to obtain independence, should go back to the judge who appointed
    • Bettencourt – has a chair been removed by this bill yet?
    • Not to his knowledge
    • Feels ability to remove is conflict
    • TLO should be well defined and prominently featured on certain websites
  • SB 2 provided enhancements of statutory protections, emphasis on ARB independence should be expanded in their training
  • Additional recommendations include: hearing on protest should not be dismissed because they are already in another hearing, but this practice has changed dramatically over last few years
  • Harris County is very good about rescheduling
  • Bettencourt – Didn’t law change that?
    • Its not precise enough
    • Problem is people change, would like to see that codified
  • Art 8 requires taxes to be equal and uniform some steps should be taken to strengthen and clarify
    • Clarification for late protest process
    • If both market and equal and uniform are both protested, then two values should be provided and final value on lower value
    • Include two taxpayer representatives on board, appointed by administrative judge
  • Bettencourt – Thanks him for offering some additional angles to talk about

 

Paul Pennington, Citizens for Appraisal Reform

  • Worked to pass pro-taxpayer legislation
  • Things that could be changed to HB 988, refers to testimony in Ways and Means last week
  • Information published by Comptroller is great and uses it to remind people in the hearings of the law
  • Improve ARBs by going to ground zero and provide more education
  • There is a group that goes around that trains all appraisal district, need a taxpayer advocate as part of the training
  • Appeal for limited arbitration is a skinny list to use
  • Provides anecdotal story of an issue, need to do something
  • Bettencourt and Pennington discuss judges appointments and concern with workforce or being overwork, could hire ARB Commissioners and get judge out of it
  • In last legislative session agreed for 10 years as term for board of directors but when bill came out – said term limits won’t go into effect for some time
  • Zaffirini – is concern on education the content or method of delivery?
    • From 1-100, Comptroller content is 100 (very good), but problem is training
    • Would be enhanced with a taxpayer representative

 

Jim Popp, Popp Hutcheson

  • Believe have best property tax system in the United States – $4 trillion in value which involves 21 million parcels and 21 million decisions every year and less than 10% are protested
  • Of hearings schedule, 561k result in a final order
  • Numbers speak for themselves
  • Good system because there is a single market standard and value each year so appraisals are current
  • May be small changes needed but cautions not everything is broken
  • Protections for protests, also one of the best processes
  • Equal and uniform & market value, the state has a remedy to enforce equal and uniform
  • Argues equal and uniform is under attack, hearing it is broken but assures the committee it is not
  • System works fine
  • One major recommendation for improving the system is electronic transfer of information and payment, it’s time to modernize the system
  • Paxton – Not opposed to paper but need to allow for people who would choose to do this electronically
  • Paxton – Have a constituent who in February last year lost home to a fire, wonder how to address concerns legislatively
    • Bettencourt – Thought disaster classification did this
    • Paxton – Didn’t think it was for an individual
    • Bettencourt – Electronic payment bill was passed in the Senate
    • Popp – Definitional, perhaps what counts as damage and should be made clear like saying fire that makes it uninhabitable and to homeowners only
    • Pennington – Agrees, FEMA could provide a category in drop down menu
  • Paxton – Thoughts on minimum electronic offerings
    • Popp – Notice of appraised value, hearing notices, ARB orders, tax bills
    • Head – In complete agreement but not everyone has a computer, etc.
  • Paxton – Not about mandating something on taxpayers, but for it to be offered

 

Dale Craymer, Texas Taxpayer and Research Association

  • Process of determining values is professional, not necessarily happy with amount but setting is professional
  • Dispute resolution process gets short end, funding issues
  • Would make more money as a greeter than on ARB, it’s a problem the taxing jurisdictions can solve
  • Solution to shortage of ARB is to pay better
  • Also do residency standard, no longer need for ARB member to drive, why not allow people outside the county be available to serve in areas where you may have to wait for weeks
  • Terms of transparency, most sites will list who is on board of directors but don’t list any contact information (would suggest every Central Appraisal District have various contacts information)

 

Nancy McKee, Self

  • Landowner in Lee County; provides an overview of the protest of their appraisal and were denied
  • Water or lack thereof is tied to value; should include clarification if landowners do/do not have water on their property
  • Bettencourt discusses the water rights and agriculture exemption of the land
  • Eckhardt and McKee discuss there is a growing problem how CADs can consider the depletion of ground water

 

Patrick O’Connor, O’Connor Associates

  • Were hired by a large number of homeowners to represent them concerning property taxes
  • Appraisal review board process is broken; out of 10k hearings on unequal appraisal property owners won 7 times
  • ARBs are ignoring the law on unequal appraisal; need to add transparency to decisions
  • Process for removal of ARB members needs to be looked at
  • Bettencourt – That is a staggering statistic; were solo protests or market and equity?
    • Market and equity; most CADs are not keeping the data
  • Bettencourt – Asks about the removal process
    • Have seen inquires concerning ARB approval to Harris County, but have not heard anything in three months

 

Andrew Wier, Simsboro Aquifer Water Defense Fund

  • Resident of Burleson County; hundreds of landowners have suffered a significant loss in their wells due to the pumping for the Vista Ridge Pipeline
  • Not a temporary situation, even if pumping stopped today, would take 100 years for the water to return
  • Tax code does have guidelines for special conditions; could at least deal with the cost of lowering the pumps
  • Rather than making statutory changes might be able to compel the Comptroller guidance on how to evaluate water losses on property value
  • Bettencourt – Will take a look at this issue

 

Joe Palmer, Self and Eliminate Property Tax

  • Overviews issues with the appraisal process including single panel appraisers, hostility on motions to reschedule, other elected officials can serve on an ARB panel
  • Chief appraisers need to be approved by the voters
  • Bettencourt – No board of directors can instruct a chief appraiser to not consider a late protest; will bring tax liaisons officers in next hearing

 

Efficiency Audits: Study the concept of efficiency audits for cities, counties and special purpose districts and under what circumstances they should be performed. Evaluate whether efficiency audits provide Texans tools to combat wasteful government spending and report whether they are needed before local government tax ratification elections.

James Quintero, Texas Public Policy Foundation

  • One of the challenge is to handle all of the federal funds coming down to the districts
  • Need an internal audit
  • Bettencourt – Notes federal funds have strings attached and not much accountability

 

Susan Spataro, Self

  • Reiterates that efficiency audits are important; is more costly for cities and counties to administer
  • Enormous scope-creep in the government; need to ensure audit does not get too broad
  • A part of a group attempting to force a performance audit of the hospital district
  • Bettencourt – Have had trouble with hospital districts in my area; will be an issue to ensure money that is coming is being used efficiently for greatest public good

 

Public Testimony

Russel Schaffner, Tarrant County

  • To issue an efficiency audit on counties would be an unfunded mandate
  • Timeline to get this done is longer than 71 days
  • Are funding $10.5m in overtime for jailers to house prisoners who should be in the state’s facility
  • Scope is important, efficiency audits for law enforcement should be carved out because of SB 23
  • Bettencourt – Would not carve anyone out, does not mean you have to do anything with it
  • Eckhardt – Need a 2-5-year timeline for these audits; agree it should not have any carve outs
  • Bettencourt – Are exceptions to that
  • Eckhardt and Bettencourt discuss this further