PROPERTY TAXES?
The Central Appraisal Districts 2023 proposed taxes have hit the mailboxes, have you even opened yours yet? Many Counties in Central Texas are having some sticker shock! I have heard values have risen anywhere from 50 to 1000% What I have learned in the 6 years I have been questioning the Appraised Values rising anywhere from 47 to 63% in some years. The deck is stacked against the landowner.
I mainly argue about Native Pasture valuations but have watched all values rise for Residential, Commercial and Open Space valuations. I am no expert by any means and still don’t know all the answers. The local CADs and State are not very forthcoming with information. Residential property is based on comparable values of “like” houses sold in your area. The Central Appraisal District does “mass” appraisals because it would be impossible to look at each and every house/property in an area. They determine a value based on what they believe your house/property is worth. Now they use “software” to obtain an idea of value, based on age, any improvements and condition. The “software” may have many different categories of value for your individual house/property.
Commercial property is basically the same as residential but then they may throw in an “income approach” also. So, a thriving restaurant may have a higher valuation than a thrift store next door. Open Space (farms, ranches, vineyards, orchards etc.) valuations are based on what their land can produce. It is the most complicated of them all.
Here is a simplified version of what I understand happens; The local CADs set the values for the County and City in your area. They are then supposed to submit those values to the Property Tax Assistance Division in the Comptrollers ✓ Office. The CAD should be able to defend the values they come up with. If the numbers are questioned by PTAD then the school superintendent may protest those values to PTAD. PTAD does a review of the values every two years in every county across the state. If PTAD decides that the values are not within 5% of what they feel they should be, that county faces a two year “grace” period where they either need to meet PTADs number or have the local CAD defend the valuations they submitted. If the CAD does not defend or justify their valuations, then the State may lower their funding to the S
local ISD.
The CADs are overwhelmed by the tax codes and having to “make” the States numbers. Many smaller CADs have resorted to hiring outside consultants/corporations to “help” them make the States numbers. The Consultants/ Corporations don’t care about the local landowners, this is just business to them, and they don’t mind getting their foot in the door by raising the “schools will lose funding” approach. They drive up the values to meet the States numbers and tell landowners to take their protests to the Appraisal Review Board (ARB).
The Appraisal Review Board has the power to ask the Chief Appraiser to negotiate/ correct an appraised value. Residential and commercial are fairly straight forward, Open Space valuations are much more difficult and usually the ARB cannot grasp the concept on how complex it can be. If the ARB rules against you, you have the option of Mediation or file suit against the CAD in District Court. Most of the mediators are retired attorneys and may understand a Residential or Commercial protest but I have yet to meet one that understood Open Space valuations. District Court will cost major attorney fees and are impossible to win. The only cases I have heard of that have gone to District Court and done any good have been class action suits against a CAD.
So, what can you do? PROTEST your valuation! Be respectful.
Let the local Chief Appraiser know your displeasure, have the Chief Appraiser “prove” their number, show you the comparable values for your house/property and Open Space valuation, (they will try to make you prove them wrong) Ask them to print your “Index Card” to show you more information about your value. Have them show you any work files, categories or calculations that they used to come up with your valuation.
Attend the CAD Board meeting and express displeasure at the way your Chief Appraiser/Consultant/Corporation is doing their job.
Do Freedom of Information Requests to your local CAD and PTAD (State).
Contact your local officials (School Board, Superintendent, County and City) and attend the local meetings.
Contact your State Senator and State Representative and express your concerns about property values in Texas. They need to know the concerns of the landowners, that helps them shape legislation for the future.
Call Glenn Hegar’s office at (512) 463-4444 and express your concerns about property valuations in Texas.
Brian Wright Mason, TX