equal and uniform · uniform taxation, equal and uniform taxation must prevail •back to dallas...
TRANSCRIPT
EQUAL AND UNIFORM 27TH ANNUAL CONFERENCE
DALLAS, TEXAS
OCTOBER 9, 2014
A MEDIA PHENOMENON!
• Dallas
• Houston
• San Antonio
• Austin
• Even Waco
IN REALITY THE EQUITY STATUTE IS:
• The devil incarnate or worse
• Shifting taxes to homeowners
• A loophole providing corporate welfare
• Unfairly using the median value
• Undermining the tax roll (spiraling down)
IT CAN BE FIXED BY:
• Repealing 41.44 (b) (3) and/or
• Limiting 41.44 to residences valued less than $1million
• Mandating sale price disclosure
PRIOR TO 41.44 (B) (3) :
• Dallas National Bank v. Dallas County (1943) • Subject assessed at $175 per acre
• Comparable adjoining tracts assessed value ranged from $20 to $30 per acre
• “Same approximate kind and value”
PRIOR TO 41.44 (B) (3) :
• Appeals Court Decision (1943)• Assessing subject at 70 percent of value and others at 10 percent of value is unequal
• Such assessment unconstitutional
• Even without evidence of a systematic plan to discriminate
• Values should have been equalized either by lowering the subject or raising the others
PRIOR TO 41.44 (B) (3) :
• After Dallas National Bank v. Dallas County • Generally only a deliberate plan to discriminate was unequal appraisal
• Equalization Boards can decide what is “equal”
• Exact equality is unattainable
• Differences based on judgment regarding property value not unequal
PRIOR TO 41.44 (B) (3) :
• After Dallas National Bank v. Dallas County • Assessing individuals’ properties at 50 percent and railroad property at 100 percent was unequal appraisal
• Assessing all land at $20 per acre not equal and uniform
• Assessing oil and gas properties at 100 percent and all other properties at varying percentages unrelated to market value constituted unequal appraisal
• Generally difficult to prevail
AFTER 41.44 PRIOR TO (B) (3) :
• A Sampling Problem!
• Sales ratio study required
• Reasonable and representative sample of other properties
• Reasonable number sample of similarly situated or same general kind and character
AFTER 41.44 (B) (3) :
• A Sampling Problem Solved!
• … a reasonable number of comparable properties appropriately adjusted
AFTER 41.44 (B) (3) :
• Harris County Appraisal District (HCAD) v. United Investors Realty Trust
• If a conflict exists between taxation at market value and equal and uniform taxation, equal and uniform taxation must prevail
• Back to Dallas National Bank v. Dallas County?
• Judge must lower value to median
AFTER 41.44 (B) (3) :
• Looting the tax base
• Will spiral down
• Unfairly shifting the burden to homeowners
• Cherry picking
WHAT ARE THEY THINKING? :
• Systemic Threat
• Homeowners Footing the Bill
• Local Government Will Be Starved
• The End of Civilization as We Know it
AFTER 41.44 (B) (3) :
Source: Popp | Hutcheson
AFTER 41.44 (B) (3) :
Source: Popp | Hutcheson
WHAT ARE THEY THINKING? • Lawsuit reductions in 2012 were $13.75B or 3% of the total reductions granted and only 0.6% of the total
statewide appraisal roll,
• Homestead and appraisal cap deductions were $161.9B in 2012,
• Ag use appraised value deductions in 2012 were $206B
• Some other 2012 deductions: abatements $16.9B, freeport $26.2B, tax increment financing $11.28, and pollution control $10.49
• In 2012, $29B in reductions were made at informal settlements and $18B in reductions were made at ARB hearings.
• A $2750 homestead exemption would offset all litigation reductions
Source: Popp | Hutcheson