Our rigged tax system

[Bob Of Burleson]

Our property tax system is rigged

By Mike Collier
TribTalk.org

If Texas is booming — and it is — then why do the taxes on my home keep going up while funding for roads and schools keeps getting cut? One of the culprits is a property tax system that is shot through with loopholes and rigged against homeowners.

The property tax appraisal system’s bias against homeowners (including me) is costing Texans $4 billion a year, according to a calculation made in 2006 by the state’s largest appraisal districts. But the money might not be the worst of it. Texas homeowners are realizing that the appraisal system is highly politicized, and they’re beginning to suspect that our economic boom is primarily benefiting well-connected insiders.

The good news is that three simple solutions — tightening the definition of “comparable property,” mandating price disclosure on commercial property, and requiring each side in an appeal to pay its own attorney’s fees — will go a long way toward fixing the way our state does business.

The state comptroller should provide the leadership needed to address these concerns and, if necessary, reform Texas’ property tax division to do so.

Property owners have the right to compare the appraised value of their property to that of other “comparable” properties if they believe their appraisal is too high. While this is an important safeguard, the courts have only loosely defined what is considered comparable. Tightening the definition of comparable property (to consider age, location, tenants, utility costs, etc.) would codify what is a well-established practice in the corporate world, where using the known value of comparable properties to defend an estimate is standard practice. But ask any CFO — and I used to be one — and you’ll hear that if you rig the estimation by selecting properties for comparison purposes that aren’t, in fact, comparable, you invite trouble with your auditor, with investors, with the Securities and Exchange Commission, and possible loss of employment. Rigor in identifying truly comparable properties when estimating value is fundamental to reliable accounting. It’s remarkable that Texas courts don’t demand it. The law should be changed so that appellants are required to identify comparable properties with the same rigor used in the corporate world.

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Proposition 13

[John in Plano]

prop 13 can't happen in TX

[GFB]

prop 13 can't happen in TX

Why not?

[John in Plano]

CA allows its voters to collect voter signatures on propositions to be put on the ballot. ie prop 13

TX doesn't.

[GFB]

CA allows its voters to collect voter signatures on propositions to be put on the ballot. ie prop 13

TX doesn't.

I realize that, but our legislators are loons..anything sane has to come from the streets.

But with all those almost sane Conservative legislators in Texas, why would something like Prop 13 come from the top down?

[John in Plano]

Part of the issue with property taxes in this state is schools are funded via property taxes and rich districts send money to poor districts. The so called Robin Hood plan.

Increased appraisals, means increased prop taxes, which means more for schools even after a rich district shares with a poor district.

[John in Plano]

CA allows its voters to collect voter signatures on propositions to be put on the ballot. ie prop 13

TX doesn't.

I realize that, but our legislators are loons..anything sane has to come from the streets.

But with all those almost sane Conservative legislators in Texas, why would something like Prop 13 come from the top down?

Austin has as many loons as Sacramento, so I doubt they will this issue. Deep pocket individuals / groups must be happy with the current system.