The Senate Select Committee on Property Tax Reform & Relief has released their interim report to the 85th Legislature which includes background, conclusions from testimony, proposals, recommendations, and letters to the Chair. Below is a spotlight on the summary recommendations directly from the report; however, for complete details please refer to the report.
SUMMARY RECOMMENDATIONS
1. The Legislature should consider repealing the current petition driven rollback process.
2. The Legislature should consider replacing the existing rollback process with one that requires automatic tax ratification elections held on the uniform election date and locations in November if a taxing unit exceeds the ratification tax rate.
3. The Legislature should consider reducing the 8% growth limit in the rollback tax rate calculations to a 4% or lower amount more in line with Texans’ ability to pay.
4. The Legislature should consider simplifying the calculations used to generate the rollback tax rate as well as the other calculations that are used in the Truth in Taxation process.
5. The Legislature should consider simplifying and adjusting the tax year calendar to make it more favorable to the citizenry and government and in alignment with the requirements of the Elections Code.
STATE LEVEL SUMMARY RECOMMENDATIONS
1. The Legislature should consider creating an advisory board appointed by the comptroller to provide direct oversight over the property tax system, issue binding rulings with respect to the interpretation of the Property Tax Code, and have enforcement authority over those rulings.
2. The Legislature should consider giving the Property Tax Assistance Division in the Comptroller’s Office authority to enforce the collection of property value, tax rate and tax levy data from local governments.
3. The Legislature should consider requiring taxing units to submit to the Comptroller their effective and rollback tax rate worksheets as well as the order adopting the tax rate each year before they may issue tax bills.
4. The Legislature should consider requiring the Property Tax Assistance Division to increase the amount of training required for basic certification to serve on an appraisal review board as well as specialized training for appraisal review board members who will hear complex or technical protests.
5. The Legislature should consider requiring the Texas Department of Licensing and Regulation (TDLR) to share any data they gather from investigation of a property tax licensee with the Comptroller’s Office.
6. The Legislature should consider requiring TDLR to take timely action on disciplinary actions that the comptroller has referred to TDLR.
7. The Legislature should consider giving the comptroller the authority to ensure that CADs follow the guidelines set out in any appraisal manuals issued by the Comptroller’s Office.
LOCAL LEVEL SUMMARY RECOMMENDATIONS
1. The Legislature should consider revising the required Truth in Taxation calculations to simplify the form used. The core calculation should be revised to subtract a taxing unit's levy from the prior year from the current year to determine the additional taxes that will be imposed, and then provide the additional cost to the average home due to the increase in taxes.
2. The Legislature should consider revising the open government laws to make clear in statute that the information or records of a third party that contracts with a central appraisal district are subject to open records requests.
3. The Legislature should consider revising the Property Tax Code to require the limited re-appraisal of property that is located in an area that is or was subject to an official disaster declaration by the governor.
4. The Legislature should consider repealing the ability of a taxing unit to challenge the values of an entire class of properties, even within its own boundaries, to the detriment of taxpayers and other taxing units.
5. The Legislature should consider adding language to the Property Tax Code to clarify that appraisal review board decisions, whether by a panel or the whole board, only require a majority vote, and not a unanimous vote.
6. The Legislature should consider revising the Property Tax Code to provide that an appraisal review board may hold weekend hearings on Saturday or Sunday, but not both; evening hearings after 5 PM; and no hearings on federal holidays.
7. The Legislature should consider requiring appraisal districts to conduct internal ratio studies before the issue initial notice of appraised value to check for equity between properties.
8. The Legislature should consider the creation of a specialized protest panel to handle value protests brought by owners of complex or uncommon properties.
9. The Legislature should consider expanding access to arbitration as an alternative to an appeal to district court for properties that qualify for agricultural, open space or timber appraisal.
10. The Legislature should consider giving the comptroller the authority to use local funds to issue paychecks to ARB members.
11. The Legislature should consider removing the authority to appoint the ARB chair from the CAD board and give the authority to the members of the ARB.
Sen. Bettencourt will file SB 2 today in response to the findings of the Senate Select Interim Report.