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