Senate Select Committee on Property Tax Reform and Relief
Monday, December 7, 2015
Chairman Summary

  • Problem with property taxes is they increase multiple times faster than household incomes
  • 2003-2013 statewide property tax value has risen 43% , $1.7 trillion
  • Tax levies follow value increases, taxing units increasing and most growth has been special districts
  • Tax levies are growing 6x faster than Texans paycheck
  • Committee will look for ways to reform and find relief for all taxpayers
  • San Antonio Jan 28 – Public Hearing
    • Others coming up include: suburban county area Feb., high plains in March, Valley in April, DFW late April, Houston May, will also hold Joint with IGR on Special Districts
  • Committee designed to do robust hearing process and investigate solutions

 
Invited Testimony – Texas Comptroller Office
Philip Ashley (Director Property Tax Division), Mike Espereza (Property Tax Assistance Division), Connie Rose (Team Lead for Property Tax Division)   

  • Overview of tax timeline provided (Phase I appraisal, notice of appraised value, Phase II appeal, Phase III taxation, Phase IV collections and deferrals)
  • Each phase reviewed
  • Rose said in regards to SB 849, it went into effect Sep. 1 but some people were not eligible
  • Bettencourt would like to clean up deadlines to have just one protest deadline instead of multiple deadlines
  • Sen. Hancock would like to know more about why the multiple deadlines currently
    • Rose did coordinate it at one time but did not extend arbitration deadline the extra 15 days
    • Hancock asked if this is a legislative oversight?
    • Rose- possibly
  • Bettencourt would like to get data on overall homestead exemptions were expanded out of new constitutional amendments – how much was actually granted
  • Overview of PTAD, MAP, Property Value Study provided
  • Bettencourt asked out of Property Value Study
    • Number of protests 150 for invalid finding and most were resolved informally
    • One went to hearing – SOAH, Comptroller decision sustained 
    • Is the study a useful tool in its current form asked Bettencourt? , any improvements?
    • Yes but no suggestions on improvements – but always looking for ways to refine the process
    • Bettencourt said important to take a serious look at the study and understand what techniques are being used
  • Method and assistance program review (MAP) program – Bettencourt asked about staff’s general findings?
    • Working very well and complimentary to property value study
  • Bettencourt said he disapproves strongly of jurisdiction in ARB hearing wanting to lose case to get to district court as soon as possible
    • Doesn’t want to allow government to sue 19k taxpayers and for that city to argue they should not even be served with proper documentation
    • Bettencourt said one recommendation coming out of the committee will be to ensure this never happens again and there will be a hearing on this issue as part of this select committee process
  • ARB members receive training from PTAD
    • The training includes going through sections of tax code
    • ARB members considered quasi-judicial, they are independent of appraisal district   
  • ARB members are appointed by administrative district judge and smaller areas board of directors
  • Bettencourt asked if there should be some oversight by PTAD in regard to training and varied practices by ARB across the state
    • Staff there are procedures for larger areas but smaller districts may be trying to follow procedures for larger districts
  • Is there a recommendation for feedback loop to determine if ARB training is successful
    • There is a hotline which is listed in manuals but not much utilization
  • Staff can advise on technical issues but does not provide legal advice
  • Bettencourt said this is a primary area where people interact with government, may be only interaction with government, need to look at training and help ARB members communicate better with taxpayers
    • Staff responds there is close interaction between the ARB and the appraisal district which could lead to people’s concern the ARB is on the side of appraisal district
    • Bettencourt would like to look at more independence of the ARB
  • Sen. Perry wants details on cost to litigate at a district court level (for both sides)
  • Bettencourt asked for numbers for previous years – values going up, down?
    • Single family residential flattening out
    • Some reduction oil and gas   
  • Rate of growth handout provided to the committee
    • Counties and school districts level
    • Minor increase in special purpose districts, steady growth but biggest growth was between 2007 and 2008
  • Sen. Creighton asked about taxpayers bills of rights – tax rates were supposed to be submitted so they could all be ranked? How is it enforced?
    • Staff has already posted on website and contacts districts to gather details