Appraisal Task Force Report Out Today
The final report from the Tom Pauken-led task force on property appraisals releases its report this afternoon in a presser with Gov. Perry. Quorum Report's Harvey Kronberg obtained an early copy, which reveals few, if any, surprises.
Some highlighted recommendations:
• Require voters’ approval for government spending to increase more than 5 percent year-over-year.
• Reform the property appraisal process by establishing minimum qualifications for appraisal board members and taking other steps to protect property owners.
• Require taxing entities to give taxpayers more specific and explicit information in their bills.
• Require the comptroller to give taxpayers better information about their rights -- notably their rights to appeal -- under the tax code.
• Change the makeup of the appraisal boards to include taxpayer representatives.
• Prohibit legislative actions that are in effect unfunded mandates – services that the state requires local governments to perform but does not fund. One example: Requiring school districts to lower the student-teacher ratio without providing additional money to hire more teachers.
• Require the disclosure of property sales prices. A lack of disclosure is thought to have depressed the taxable value of property, especially on high-end residential and commercial property.
Comments
Don't be fooled by the "sales price disclosure" headline in the report. What's actually being recommended is that property buyers "render" an estimated value to the appraisal district -- all they have to do is tell the appraisal district what they think their property is worth, not turn over the sales contract that reflects the actual value. This is reminiscent of the old law -- fixed last year -- that allowed someone who bought a car from their neighbor to file an affadavit of the sales price, without proof. It was known in the tax office as a "liars affadavit."
Posted by: Doublecheck | January 23, 2007 12:57 PM
Thanks, Doublecheck. You're correct, to a point. The taxpayer would be required to present proof of the "rendering." To wit, the recommendation "stipulated that the property would be rendered by the purchaser within a reasonable period of time, 90 to 180 days after closing, for what they deemed to be market value, and that such rendition would be supported by the purchaser’s justification for this value. If the buyer fails to render a value to the CAD within the time provided with a justification of that value, the purchaser would be required to provide closing documents supporting the actual price paid."
Posted by: md | January 23, 2007 1:56 PM
Explain to me again how the half-cent sales tax in trade for a lower appraisal cap would work. Rural areas won't do it, since they don't have enough sales to make a difference. So it's only urban areas, all of which are already at 8 1/4%. Except North Texas, which also wants a half cent for rail. So now we are up to 9 1/4% sales tax in the North Metroplex! In trade for an appraisal cap that benefits mainly high-end homes. Why is this a good deal for anyone?
Posted by: David Siegel | January 24, 2007 3:20 PM