Date:

Location:

Town Hall

Meeting May 28,2019 Tuesday - 5:30 p.m.

200 Crosson Ave. Ballinger, TX

Who: ~ Runnels County Appraisal District ~ Alvin Dunn, Chairman RCAD Board of Direclors

~ City Manager, Tommy Tumey ~ PaulScott Randolph, Chief Appraiser

'.

Meeting ~ be: in JIaIlinger. TX at th~ Community o~ ~y 28th Sta~g ' at 5:30 · pm to discuss recent tax

. valuatioDS for RunnelS County.

The town hall is open to the public and me!nben of the !nedia. AD connty re$ldents with property tax questions are encouraged to attend.

Tuesday. May 28.20199:27:31 AM· Town Hall Meeting - May 28, 2019 - Appraisal Valuations I Welcome to Ballinger

Runnels County Appraisal District Chief Appraiser Mr. PaulScott Randolph Taxpayer Liaison: Phone: 325-365-3583 Fax: 325-365-5563 Email: sunno .. t/~ runnelscad.org Website: w\Hv.runnelsc3(l.org

Appraisal Review Board Mr. Johnny Pritchard, Chairman Mr. Justin Busenlehner, Vice-Chairman Mr. Robert Gihson, Member

Taxing Units (17)

• 200-000-00 Runnels Count)"

Board of Director's Mr. Alvin Dunn, Chairman Mr. Gary Kemp, Vice-Chairman Mr. Sylvester Schwertner, Memher Mr. Roy Brown, Member Mr. Joe Gerhart, Member Mrs. Robin Burgess, Secretary

Agricultural Advisory Board Mrs. Linda Duggan Mr. Gary Jacob Mr. Rodrick Bredemeyer

• 041-901-02 Bronte Independent School District • 042-905-02 Panther Creek Consolidated Independent School District • 042-906-02 Novice Independent School District • 200-901-02 Ballinger Independent School District • 200-902-02 Miles Independent School District • 200-904-02 Winters Independent School District • 200-906-02 Olfen I ndcpendent School District • 221-911-02 Jim Ned Consolidated Independent School District • 200-101-03 City of Miles • 200-102-03 City of Winters • 200-103-03 City of Ballinger • 048-201-06 Lipan-Kickapoo WD • 200-201-11 North Runnels HD • 200-202-11 Ballinger Memorial HD • 200-201-40 Runnels County ESD #1

Runnels County-Judge Barry Hilliard Runneh. (,)unt) Courthouse 613 Hutchings :\\' I.!IIUI.! Ualling.'-.'r. f C~i.lS 1M~21 (J2513();-26J3 hIt" '; I ",\\'\.\ .cu. monds.lx.us.,'

City of 8allinJ!:tl' ;\·1r. 1'(llTlm~ I urnc~ Jr. Cil) \ -Ianagcr 70(' Railmad .\v ..... Balling..::r, rx 7h&21 1J2j).l65~3511 Cit)' Ifall hups:l!hall inger· t.\. ',,:0011

Ballin&er I.S.O. Mr. JefT Buns. Sup!. 802 Conda Avo. Ballingor. TX 76821 (325)365-3588 h It OS :,'iW'" w. ball in gcrisd .nel.:

Jim Nod c.I.S.0. Mr. Bobby Easterling. SUpl. 830 Garza SlrC(( Tuscola, TX 79562 (325)554-7500 hup:llw\\ ,\. jimnl!d.;,;sc J..J . neV

Panth.r Creok c.I.S.0. Mr. Owinn Nanny. Supl. 129 Privah: Road 3421 Valera. TX 76884 (325)357-4449 http~ :tlwwY< .pcrcd •. ndi

Ballinger Memorial H.D. Mr. Rhon Fricke. CEO 608 Avcnue B Sollinger. TX 76821 (325)365-2531 hUp:>:J/w\\ \\ .blllling..:rhospilal .{Irgl

Lipan-Kicka""" W.C.O. Mr. Allan Lange 9538 York Road Ste. C Vancourt. TX 76955 (325)469-3988 http://w".wJip.tn-kickapoo.org

Entity Contacts:

('itJ of Miles ~Ir. S~ "' '':Sl~r Schwl!r1u

·\ILl~or

1 II Ro"'in'ion Slrl.!t!i Mi ll.!s. rx 761>61 C l~$}",oH-J I 51 L'il) llal1 hup;." \\ \\ \\ . ml!csl,,::s:!s.t.:umi

Bronte I.S.D. Mr. Tim Siler. Supt. 210 lc:lTc:rson Street Bronte. TX 76933 (325)473-2511 hUp:l/n h \\ .broob!i..;J.nel.-'

Milo. I.S.0. Mr. Clint Askins. Supt. 1001 Robinson Street Miles. TX 76861 (325)468-2861 hugs :.'," \\ ,\ .mik!'isd.QI,rt.

Winters I.S.0. Mr. Bruce Davis, Supt. 603 N. HeighlS Winters. TX 79567 (325)754-5574 https:II,\ww \\ intt!TSisd or21

North Runnels H.D. Mr. Richard Mathis. CEO 7821 Slat. Hwy. 153 Winters. TX 79567 (325)754-4553 htIPS: 'illuahrumlt!l>huspital.coml

Valley Creek W.C.O. Ms. Sherry Weston P.O. Box 64 Winga.e. TX 79566

N/A N/A

("H.\' of Winters Mrs , US.l Yatl!s Ma)or 31 0 ~. ~:Ia in SII't':Cl Winh.:rs. TX 71)51)'7 fJ :?5)7j"-"",~4 City 'Iall hups:lIw\\ w .cit \·ol\vim~rs.mw

Coleman I.S.D. Mr. Brandon McDowell. Supt 2302 S. Commercial Ave. Coleman. TX 76834 (325)625-3575 hnps: ' \\ ,\ \\'.COICnl:lllisd.l1l!v

Olron I.S.0. Mr. Gabriel Zamora. Supt. 1122 Private Road 2562 Ruwena, TX 76875 (325)442-4301 hltpS: ', W\\\\ ,ollenisd neu

Runnels [SO Nt Mr. Marc Sklenarik P.O. Box 184 Milos. TX 76861

N/A N/A

.'

RUNNELS COUNTY COMMISSIONERS' COURT

Runnels County Commissioners' COLlrt Judge Barry Hilliard

Precinct 1 Commissioner

Robert Moore

709 N. 7th Street Ballinger. TX 76821

Phone. 325-365-3615

Precinct 2 Commissioner

Ronald Presley 401 CR 341 Winters. TX 79567

Phone: 325-754-4025 Fax: 325-754-4405

Precinct .3 Commissioner

Roy Mints

1525 State Hwy 153 PO Box 222 Wingate. Texas 79566

Phone: 325-743-2566

Commissioner3@taylortel.net

Precinct 4 Commissioner

Juan Ornelas

P. O Box 272 Miles, TX 76861

Phone' 325-468-2551 ).ornelas@co.runnels.tx .us

PROPERTY TAXSYSTEM

BASICS

.' '.

PROPERTY TAX SYSTEM BASICS Property taxes are local taxes that provide the largest source of money local governments use to pay for schools, streets, roads, police, fire protection and many other services. Texas law establishes the process followed by local officials in determining the value for property, ensuring that values are equal and uniform, setting tax rates and collecting taxes.

Texas has no state property tax. The Texas Constitution and statutory law authorizes local governments to collect the tax. The state does not set tax rates, collect taxes or settle disputes between you and your local governments.

Who Does What?

Your local property tax system has several main components.

The property owner, whether residential or business, is responsible for paying taxes and bas a reasonable expectation that the taxing process will be fairly administered. Tbe property owner is also referred to as tbe taxpayer.

An appraisal district in eacb county, administered by a cbief appraiser, appraises the value of your property each year. Tbe appraisal district's board of directors hires the chief appraiser. Local taxing unit.s elect the board directors and fund the appraisal district based on the amount of taxes levied in each taxing unit. For more information about your local appraisal process, please contact your county's appraisal district. The appraisal district can answer questions about exemptions and how your appraised value was determined.

An appraisal review board (ARB) is a board of local citizens that hears disagreements between property owners and the appraisal district about the taxability and value of property. In counties with a population of 120,000 or more, members of the ARB are appointed by the local administrative district judge in the county in which the appraisal district is located. The board of directors appoints ARB members in all other counties. Protests concerning the appraised value of your property should be directed to your ARB. Your appraisal district can provide you with contact information for the ARB.

Local taxing units, including tbe scbool districts, counties, cities, junior colleges and special districts, decide how much money they must spend to provide public services. Property tax rates are set according to taxing unit budgets. Some taxing units have access to other revenue sources, such as a local sales tax .. School districts must rely on the local property tax, in addition to state and federal funds.

In many counties, taxing units contract with the county tax assessor-collector to collect all property taxes due in that county. The assessor-collector then transfers the appropriate amounts to eacb taxing unit. Although some taxing units may contractwith an appraisal district to collect their taxes, the appraisal district does not levy a property tax. For

information about local taxing unit budgets and tax rates, please contact the individual school district, county, city, junior college or special district.

The role of tbe Comptroller's Property Tax Assistance Division (PT AD) is primarily limited to monitoring responsibilities. PT AD conducts a biennial Property Value Study (PVS) for each school district for state funding purposes. The PVS, an independent estimate mandated by the Texas Legislature, ensures tbat property values within a school district are at or near market value for equitable school funding. The Comptroller's values do not directly affect local values or property taxes, which are determined locally.

PT AD also performs Methods and Assistance Program (MAP) reviews of all appraisal districts every two years. The reviews address four issues: governance, taxpayer assistance, operating standards and appraisal standards, procedures and methodologies. PT AD reviews approximately half of all appraisal districts each year. School districts located in counties that do not receive a MAP review in a year will be subject to a PVS in that year.

What Do They Do?

The Texas local property tax is just that - a local tax, assessed locally, collected locally and used locally.

More than 4,100 local governments in Texas - school districts, cities, counties and various special districts - collect and spend these taxes.

Several types of local governments may lax your property. Texas counties and local school districts tax all nonexempt property within their jurisdictions. You also may pay property taxes to a city and to special districts such as hospital, junior college or water districts.

The governing body of each of these local governments determines the amount of property taxes it wants to raise and sets its own tax rate. Many, but not all, local governments other than counties contract with their county's tax assessor-collector to collect the tax on their behalf.

When Do They Do It?

The property tax process for each tax year includes a series of steps.

October 1 Local taxing units (or county IlIX ~.sesSOf-

pay for your public schools, city streets, county roads, police departments, fire protection and many other vital programs.

Path of a Property Tax Dollar

You pay your property tues to the ......

local tax cotlector. ..."

/, r .--' ~l~ I /J , ~lJ . . . , .'

The tax collector distributes funds to KhooIs, cRies and

other local governments

Why Do They Do It?

Local gov4H'nments spend funds on:

• Schools . Roads • Hospltal.

• AN Departments • OthH Programs

The Texas Constitution sets out five basic rules for property taxes in our state:

I. Taxation must be equal and uniform. No single property or type of property should pay more than its fair share. The property taxes you pay are based on the value of property you own. If, for instance, your property is worth half as much as the property owned by your neighbor (after any exemptions that apply), your tax bill should be one-half of your neighbor's. This means that uniform appraisal is very important.

2. Generally, all property must be taxed based on its current market value. That's the price it would sell for when both buyer and seller seek the best price and neither is under pressure to buy or sell. The Texas Constitution provides certain exceptions to this rule, such as the use of "productivity values" for agricultural and timberland. This means that the land is taxed based on the value of what it produces, such as crops and livestock, rather than its sale value. This lowers the tax bill for such land.

3. Each property in a county must have a single appraised value. This means that the various local governments to which you pay property taxes cannot assign different values to your property; all must use the same value. This is guaranteed by the use of county appraisal districts.

4. All property is taxable unless federal or state law exempts it from the tax. These exemptions may exclude all or part of your property's value from taxation.

5. Property owners have a right to reasonable notice of increases in their appraised property value.

Broad questions about the nature and purpose of property taxation in Texas can be . directed to your local state representative or senator. Contact information for all members of the Texas Legislature can be found at Texas Legislature Online.

How Can I Challenge What They Do?

If you are dissatisfied witb tbe results of a dedsion by your local ARB, you bave tbe right to appeal its decision to district court in tbe county where tbe property is located. Alternatively, you may appeal tbe ARB's determination to binding arbitration or to the State Office of Administrative Hearings (SOAH) provided certain criteria are met.

Binding arbitration is conducted by an independent tbird party. Tbe Comptroller's office maintains a registry of qualified arbitrators and processes requests for arbitration and accompanying deposits, but plays no otber role in tbis process.

If the property value as determined by the ARB order is over $1,000,000, you may file an appeal witb SOAH. Tbe decisions ofSOAH administrative law judges are final and may not be appealed. For more information on tbis process, visit the SOAH website.

VALUING PROPERTY

A Brief Overview

The Texas Property Tax System:

This is a brief overview of the Texas Property Tax System. It will explain the legal basis of the property taxation and the importance of property tax revenues to local governments, school districts, and other special districts.

Definition

A !!l is a compulsory monetary contribution imposed by governments to pay for governmental activities. Common taxes include income, sales, and value-based taxes. A property tax is assessed according to the value of property a taxpayer owns. Because property taxes depend on value, they are called ad "a/orem, meaning "according to valuc." Property value presumably reflects its owner's wealth; therefore, market value demonstrates an owner's ability to pay. Knowing property values should allow governments to make impartial, fair tax assessments to individual property owners.

Importance of Local Governments Property taxes are locally based and administered. Local governments and school districts use property tax revenues to finance a wide range of services such as fire and police protection, schools, public libraries, street maintenance and parks. Special districts finance water systems, utility systems, junior colleges and other systems and projects.

In the past, both state and local governments levied property taxes. Until 1980, the state tax helped finance construction of many of the state's colleges and universities. The legislature has now eliminated the state tax, but the local property tax remains as the primary revenue source for more than 1,000 school districts and 3,000 other local jurisdictions in Texas.

Statewide, more than half of all Texas property tax levies support public education. The state general fund provides more than 40 percent of the revenues, and federal funds and other local revenues contribute the remaining portion of school funds. A school district's total tusble value affects the level of state funding it receives.

pg. 1

Major Administrators and Agencies

To understand how the Texas property tax system functions, the individual person should be able to identify the political subdivisions. public officials and governmental agencies that administer the system. The specific roles and responsibilities of these entities are explained in detail throughout this text. The following section introduces the major property tal( administrators and agencies.

Appraisal Districts Appraisal Districts are frequently referred to as county appraisal districts or CADs. CADS exist for each of the 254 counties in the state of Texas. Two counties were combined bringing the total to 253. These districts are responsible for appraising property in the district for ad ~'alorem tax assessments. Generally, a board of directors is elected by taxing units that are authorized by law (cities, counties, schools and certain reclamation/conservation districts). It governs appraisal districts and establishes the appraisalliffice. Special provision exists for contracting with local governmental entities to provide appraisal services. Funding for an appraisal district is provided as set forth in the Texas Property Tax Code. A percentage of the levy collected by the participating taxing unit pays a share of the CAD budget. The CAD collects nothing from the taxpayer directly for its hudget.

Chief Appraiser The chief appraiser serves as the Chief Administrative Officer of the CAD. The chief appraiser is responsible for personnel hiring and management. The chief appraiser hires and directs the district personnel. The appraisal district hoard of directors appoints and hires the chief appraiser.

Appraisal Review Boards Each appraisal district board of directors also appoints an appraisal re~'iew board (ARB). The ARB hears property owner protests, taxing unit challenges. and correction motions, the approves the records to create the district's appraisal roll. Thus, the ARB settles disagreements about value, exemptions or other issues between a property owner and the CAD.

Taxing Units Local governmental entities with the legal authority to impose property taxes are called "taxing units·' a.kwa. tax.ing entities. Counties, schoul districts, incorporated municipalities (cities) and special districts (municipal utility and junior college districts) are examples of taxing units. Taxing unit governing bodies (city councils, county commissioners courts, school boards, etc.) set each taxing unit's budget, adopt tax rates, collect taxes and spend those taxes to provide services and pay the unit's dehts (M&O and I&S). The amount of 11

pg. 2

taxing unit's budget determines the tax rate. The tax rate and taxable value set the total taxes the property owner must pay.

The Texas Constitution and the Property Tax Code specify how taxing units may adopt a property tax. Cities, counties, school districts and special districts each have legislative authority that defines their powers to tax by setting rate limits, debt limits and timetables for action.

Assessor and Collectors

Counties elect assessor-collectors for the county. Taxing units name a specific person-all assessor- to calculate taxes, prepare tax rolls and generate tax bills. A person responsible for collecting and accounting for taxes is called a collector. A person combining these duties is commonly called and assessor-collector. These are legal terms, but some assessor-collectors may use different titles, such as business manager. Other taxing units may opt to have the assessor-collector assess and collect for them or they may appoint separate assessor and collectors. In many cases, a number of taxing units have pooled their resources to establish a single tax office with a single assessor-collector.

State Agencies

The Texas Constitution bars the state from imposing property taxes. However, a few state agencies regulate the administration of property taxes.

The Comptroller of Public Accounts Property Tax Assistance Division was established in 1991 to administer certain areas of the state's property tax system at the state level. The Property Tax Assistance Division:

--gives technical assistance to local property tax administrators;

--provides information about property taxation to the public;

--makes a stud}' of property values and the accuracy of appraisals in each school district and appraisal district every two years;

--and conducts performance audits to review each CAD's governance, tax payer assistance, operating standards, and appraisal standards, procedures and methodology at least once every two years.

Appraisers Most people are often confused as to the difference between a tax appraisal and a real estate purchase appraisal. A tax appraisal is the value of a property according to the government entity in which the property is located, usually the county. Most appraisals are valued from the sales comparison approach to value, using the mass appraisal concept of valuation. These evaluations are often done on average prices in the area and may not always be up to date with regard to current market prices.

pg. 3

A real estate purchase appraisal is ordered by the bank or lending institution which is granting a mortgage. The individual property is measured and viewed by a real estate appraiser and the compared to the most resent sales. It's not unusual to have different amounts for the tax appraisal and the purchase appraisal.

pg.4

VALUING PROPERTY With few exceptions, Tax Code Section 23.01 requires taxable property to be appraised at market value as of Jan. l. Market value is the price at which a property would transfer for cash or its equivalent under prevailing market conditions if:

• it is exposed for sale in the open market with a reasonable time for the seller to find a purchaser;

• both the seller and the purchaser know of all the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions on its use; and

• both the seller and purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other.

• Property Inspection

Tax Code Section 22.07 authorizes the chief appraiser or a representative to enter the premises of a business, trade or profession to inspect the property to determine the existence and market value of tangible personal property used for the production of income and if it has taxable situs.

How Property is Valued

Each count)' appraisal district determines the ,-alue of all taxable propert)· within the count)-boundaries. Tax Code Section 25.18 requires appraisal districts to reappraise all property in its jurisdiction at least once every three years. Tax Code Section 23.01 requires that appraisal districts comply with the Uniform Standards of Professional Appraisal Practice if mass appraisal is used and that the same appraisal methods and techniques be used in appraising the same or similar kinds of property. Individual characteristics that affect the propert)··s market value must be evaluated in determining the property's market value.

Who sets market value?

Market Value Vs. Appraised Value

Both market value and appraised value are utilized in the dealings of residential homes, commercial property, retail buildings. farms and land. However .. there are distinct differences between the market value and the appraised value of real estate. Market values are consumer-driven and appraised values are drinn by experts. The appraised value of a property describes the determination of an exact number regarding its value. Appraised values are based on gathered data and the professional judgment of the professional conducting the appraisal. The market value has more variance than the

pg.S

appraised value. Unlike the appraised value, buyers have innuence over the market value of a property because a property is only worth what a buyer is willing to pay.

Who Decides the Property Value?

A seller rna} list his property for $300,000. The buyer offers the seller $240,000. The seller accepts the buyer's offer. Who decides what the property is rcally worth'! According to the buyer and the seller, tbe market value of thllt particular proper!)' is the 5240,000 price they both agreed upon.

Howenr, bank financing is im'olved SI) an appraiser is brought in 10 establish the appraised value of the property. The appraiser factors in recent property sllles in the neighborhood, the features and functionality of the home, the condition of the home and a number of other details. The appraiser decides that tbe proper!)' is worth $260,000. The appraised value is the one that the bank will use for lending pu rposes, In most cases, the appraised value does override the market value.

Comparing Market Value to Appraised Value

Market value can be determined by either licensed or unlicensed individuals, but only a certified or licensed individual can perform a property appraisal. If the market value is calculated by a licensed real cstate agent, the report might include other acth'e property listings, pending property sales, sold properties in the last 12 months and expired listings.

I n contrast, an apluaiscr docs not represent any particular person. An appraiser simply performs thc service of determining the property's appraised ,'alue. Appraisers do not represent an individual's interests regarding a property, but the appraisnl report should be written in II clear format llllowing the reader to follow the appraiser's determination.

Can a Property Be Worth More Than the Appraised Value?

Unlike the market value, the appraised value is not necessarily the price a property will be bought or sold for. Rather, it is II guideline in the selling or buying process. Generally, a property will not be sold for more than its appraised value, especially if a lender is tinancing the purchase. Yet the property may in reality be worth mnre than the appraised value to a buyer and a seller.

How Does the Market Value Differ?

Additionally, appraisal reports are written for various purposes such as insurance, home loans, tax losses, estates, liquidation and net worth, So the market value and appraised value can vary somewhat depending on the purpose of the appraisal and who performed it,Before

pg,6

't

appraisals begin, the appraisal district compiles a list of taxable property. The list contains a description and the name and address ofthe owner for each property. In a mass appraisal, the appraisal district then classifies properties according to a variety offactors, such as size, use and construction type. Using data from recent property sales, the appraisal district appraises the value of typical properties in eacb class. Taking into account differences such as age or location, the appraisal district uses typical property values to appraise all the properties in each class.

- Tbree common approaches tbat the appraisal district may use in appraising property are the sales comparison (market) approacb, the income approach and the cost approacb.

-+ The market approach to val"e is based on sales prices of similar properties. It compares the property being appraised to similar properties that have recently sold and then adjusts the comparable properties for differences between tbem and the property being appraised. Sales information is obtained through a number of sources, mostly from the seller or purchaser. All tbe sales data obtained is confidential. The state of Teus is a non-disclosure state. The sales information that the CAD receives from the seller or purchaser helps to derive local value. If the CAD fails to maintain the market \'alue in its' district state value will be assigned by the Comptroller of Public Accounts Property Tax Assistance Division.

-+ Tile illcome approach is based on income and expense data and is used to determine the present worth offuture benefits. It seeks to determine what an investor would pay now for a future revenue stream anticipated to be receh'ed from the property.

-+The cost approacll is based on what it would it cost to replace the building (improvement) with one of equal utility. Depreciation is applied and the estimate is added to the land \'aluc.

Notice of Appraised Value

A Notice of Appraised Val"e informs the property owner if the appraisal district intends to increase the value of a property. Chief appraisers send two kinds of notices of appraised value.

A detailed notice contains the description of the property; taxing units allowed to tax the property; preceding year's appraised value; preceding year's taxable value; current year's appraised value; last year and current year exemptions; estimate of taxes based on pre\'ious year's tax rates if the appraised value is greater in the current year; statutory language; explanation of how to protest; ARB hearing information; and an explanation that the appraisal district only determines a property's value and does not decide on tax increases. A detailed notice is sent if:

• the value of a property is higher than it was in the previous year (The appraisal district's board can decide that it will send detailed notices only if a property's value increases by more than $\,000.);

• the value of a property is higher than the value the property owner gave on a rendition(see next section);

pg. 7

• the property was not on the appraisal district's records in the previous year; or • an exemption or partial exemption approved for the property for the preceding year

was canceled or reduced for the current year.

Tax Code Section 25.19 requires the chief appraiser to send the notice of appraised value by May I or April 1 for residence homesteads, or as soon thereafter as possible. If a property owner disagrees witb this value, the property owner may file II protest with the appraisal review board (ARB).

Tbe notice of appraised value includes a protest form and information about how and when to file a protest with the ARB if the proper!)' owner disagrees with the appraisal district's actions.

Limitation on Residence Homestead Value Increases

The appraised home value for a homeowner who qualifies his or her homestead for exemptions in the preceding and current year may not increase more tban 10 percent per year .

• Residence Homestead Cap.

Tax Code Section 23.23(a) sets a limit on the amount of annual increase to the appraised value of a residence homestead to not exceed the lesser of:

• the market value of the property; or • the sum of:

" 10 percent of the appraised value of the property for last year; c the appraised value of the property for last year; and J the market value of all new improvements to the property.

Tax Code Section 23.23(e) defines a new improvement as an improvement to a residence homestead made after the most recent appraisal of the property that increases its market value and was not included in the appraised value of the property for the preceding tax year. I! does not include repairs to or ordinary maintenance of an existing structure, the grounds or another feature of the property. Tax Code Section 23.23(f) states that a replacement structure for one that was rendered uninhabitable or unusable by a casualty or by wind or water damage is also not considered a new improvement.

The appraisal limitation only applies to a residence homestead. As stated in Tax Code Section 23.23(c). the limitation takes effect Jan. I of the tax year following the year in which the homeowner qualifies for the homestead exemption. It expires on Jan. 1 of the tax year following the year in which the property owners no longer qualify for the residence homestead exemption.

pg, 8

How are my taxes calculated?

Your taxes are calculated by di,·iding your taxable .. alue by one hundred and multiplying by the tax rate. For example:

Market value

Less Exemptions

Tuable Value

Apply Tax Rate

Assessed Taxes

SIOO,OOO

15,000

85,000

0.25/100

S212.50

... This is the value you will pay property taxes on. "\lith a homestead exemption.

pg.9

Runnels County Appraisal District Chief Appraiser Mr. PaulScott Randolph Taxpayer Liaison: Phone: 325-365-3583 Fax: 325-365-5563 Email: support@runnelscal.org Website: www.runnelscad.org

Board of Director's Mr. Alvin Dunn, Chairman Mr. Gary Kemp, Vice-Chairman Mr. Sylvester Schwertner, Member Mr. Roy Brown. Member Mr. Joe Gerhart, Member Mrs. Robin Burgess. Secretary

Taxing Units (17)

• 200-000-00 Runnels County

Appraisal Review Board Mr. Johnny Pritchard. Chairman Mr. Justin Busenlehner. Vice-Chairman Mr. Robert Gibson. Member

• 041-901-02 Bronte Independent School District • 042-905-02 Panther Creek Consolidated Independent School District • 042-906-02 Novice Independent School District • 200-901-02 Ballinger Independent School District • 200-902-02 Miles Independent School District • 200-904-02 Winters Independent School District • 200-906-02 Olfen Independent School District • 221-911-02 Jim Ned Consolidated Independent School District • 200-101-03 City of Miles • 200-102-03 City of Winters • 200- t 03-03 City of Ballinger • 048-201-06 Lipan-Kickapoo WD • 200-201-11 North Runnels HD • 200-202-11 Ballinger Memorial HD • 200-201-40 Runnels County ESD #1

pg. 10

Runnels County.Judge Barry Hilliard Runnds County Courthouse 613 Hutchings A venue Ballin~er. Texa; 76821 (325) 365·2633 hnp:!lwww.co.runnels.tx.lIS:

Cit) of BallinJ(er Mr. Tommy Tume)· Jr. City Manager 700 Railroad Ave. Ballinger. TX 768~ 1 (325)365·3511 Ci~' Hall hnps:.'!ballingl!r-tx.cQm:

Ballinger [.5.0. Mr. Jeff Butts, Supt. 802 Conda Ave. Ballinger, TX 76821 (325)365·3588 htlpS: t/www.balljngerisd.nli!ll

Jim Ned c'[.S.D. Mr. Bobby Easterling. Supt. 830 Garza Street Tuscola, TX 79562 (325)554·7500 http:":\\'\\", .jimnl!d.esct" .nl!l

Panther Creek C.I.S.D. Mr. Dwinn Nanny. Supt. 129 Private Road 3421 Valera, TX 76884 (325)357-4449 hups:I.'WW\\· . pl;l'C!~k . nt!l!

Ballinger Memorial H.D. Mr. Rhett Fricke, CEO 608 Avenue B Ballinger, TX 76821 (325)365·2531 https:;/ww\o\' . ball i ngerhospjtal.or~.'

Lipan·Kickapoo W.c'D. Mr. Allan Lange 9538 York Road Ste. C Vancourt, TX 76955 (325)469·3988 http://www.lipan-kickapoo.on;

City of Miles .'vtr. Syl\oe.,ter Sch\\~nner Mayor 10 Robinson Street Miles, TX 76861 (325)468·3151 City Hall hnp:Jiww",·.mjlestexas.cQm ..

Bronte [.S.D. Mr. Tim Siler, Supt. 210 Jefferson Street Bronte, TX 76933 (325)473·2511 hUp:/fW\\'\\- .bronte isd. neL'

Miles [.5.0. Mr. Clint Askins. Supt. 00 I Robinson Street Miles, TX 76861 (325)468·2861 hUDS: .www.milesisd .nel

Winters 1.5.0. Mr. Bruce Davis, Supt. 603 N. Heights Winters. TX 79567 (325)754·5574 hnps:' \\1\\,\\' . wintt!l'sisd.org"

North Runnels H.D. Mr. Richard Mathis, CEO 7821 State Hwy. 153 Winters, TX 79567 (325)754-4553 https:!lnorthrunnelshospital.com:

Valley Creek W.e.D. Ms. Sherry Weston P.O. Box 64 Wingate, TX 79566

NIA NIA

City of Winters Mrs. Lisa Yates Mayor 310 S. Main Street Winters. TX 7q567 (325)754-44"4 City Hall https:/iwww.cit\-ofwimers.net .

Coleman I.S.D. Mr. Brandon McDowell, SUP! 2302 S. Commercial Ave. Coleman, TX 76834 (325)625·3575 hUps:Hwww.coll!manisd .nel

Olren [.S.D. Mr. Gabriel Zamora, Supt. 1122 Private Road 2562 Rowena, TX 76875 (325)442-430 I hups: www.oltenisd.net

Runnels [SO #1 Mr. Marc Sklenarik P.O. Box 184 Miles, TX 7686 1

N/A N/A

pg. 11

· Guide to Understanding

the Property Tax Process

Guide to Understanding the Property Tax Process The following material has been adapted from the publication Property Taxpayer Remedies published by the State Comptroller of Public Accounts, and from various publications by the Runnels County Appraisal District.

The Basics

Property taxes are local taxes. Local officials value your property, set your tax rates, and collect your taxes. However, Texas law governs how the process works. In Runnels County, property taxes are based on tax rates set by the various local governments (taxing units) that levy a tax and on the value of the property. The valuation or appraisal process, which is performed by the Runnels County Appraisal District, serves to allocate the tax burden among property owners. The property tax provides more tax dollars for local government services in Texas than any other source. Property taxes help pay for public schools, city streets, county roads, police, fire protection, and many other services.

Constitutional Standards The Texas State Constitution sets out five standards for the property tax.

1. Taxation must be equal and uniform. All property must be valued and taxed in an equal and uniform manner. This provision, which is an equity standard, helps ensure that no single property or type of property pays more than its fair share of taxes.

2. With some exceptions. all tangible property must be taxed on its January 1 market value. The exceptions include certain agricultural; timber; and recreational, park, and scenic land subject to special appraisal. A property's market value is the price for which it would sell when both buyer and seller want the best price and neither is under pressure to buy or sell.

3. All property is taxable unless federal or state law provides an exemption for it. An exemption excludes all or part of a property's value from taxation.

4. Property owners have a right to reasonable notice of increases in appraised property values.

S. Each property in a given appraisal district must have one appraised value. An appraisal district's boundaries generally follow the boundaries of the county in which it is located.

How Does the System Work?

There are three main parts to the property tax system in Texas:

1. An appraisal district in each county sets the value of taxable property each year. The chief appraiser is the appraisal district's chief administrator and is responsible to a board of directors for its operation.

2. An appraisal review board (ARB) settles any disagreements between you and the appraisal district about the va lue of your property.

3. Local taxing units, including the county, cities, school districts, and special districts, decide how much money they will spend each year. This in turn determines the tax rate they need to set and the total amount of taxes that you and your neighbors will pay.

The system has four stages: valuing the taxable property, protesting the values, adopting the tax rates, and collecting the taxes.

January 1 marks the beginning of property appraisal. What a property is used for on January 1, market conditions at that time, and who owns the property on that date determine whether the property is taxed, its value, qualifications for exemptions, and who is responsible for paying the tax.

Between January 1 and April 30, the appraisal district processes applications for tax exemptions, agricultural and timber appraisals, and other tax relief. Around May 1 S, the appraisal review board begins hearing protests from property owners who believe their property values are incorrect, or who feel they were improperly denied an eKemption or agricultural/timber appraisal. The ARB is an independent panel of citizens responsible for handling protests about the appraisal district's work. When the ARB finishes its work, the chief appraiser gives each taxing unit a list of taxable property known as the appraisal roll.

Usually in September or October, the elected officials of each taxing unit adopt tax rates for their operations and debt payments. Typically, each property is taxed by several taxing units. For example, every property in Runnels County is taxed by both the county and a school district. Taxes may also be payable to a city or special district. including

· .

such entities as municipal utility districts, rural fire protection districts, junior college districts, and others.

Tax collection starts in October and November as tax bills go out. Taxpayers have until January 31 of the following year to pay their taxes. On February 1, penalty and interest charges begin accumulating on most unpaid tax bills. Taxing units may start legal action to collect unpaid property taxes once they become delinquent.

What is the Taxpayer's Role? You can play an effective role in the process if you know your rights, understand the remedies available to you, and fulfill your responsibilities as a property owner and taxpayer.

Know Your Rights:

o You have the right to equal and uniform tax appraisals. Your property value should be the same as that placed on other properties that are similar or comparable to yours. Unless your property qualifies for special appraisal, such as for agricultural land. you have the right to have it taxed on its January 1 market value.

o You have the right to receive all tax exemptions or other tax relief for which you apply and qualify.

o You have the right to notices of changes in your property value or in your exemptions.

o You have the right to know about a taxing unit's proposed tax rate increase and to have time to comment on it.

Understand Your Remedies:

o If you believe your property has been appraised for more than its January 1 market value, or if you were denied an exemption or agricultural appraisal, you may protest to the appraisal review board. If you don't agree with the review board, you may take your case to court.

o You may speak out at public hearings when your elected officials are deciding how to spend your taxes and setting the tax rate.

• You and your fellow taxpayers may limit major tax increases in an election to roll back or limit the tax rate.

Fulfill Your Responsibilities:

• You must apply for exemptions, agricultural appraisal, and other forms of tax relief before the deadlines.

• You must see that your property is listed correctly in the appraisal records. If your property is omitted from the records and escapes taxation, it becomes subject to a back assessment. In the event a back assessment occurs, it may cover up to five prior years in the case of real property (land and improvements), and up to two prior years for business personal property.

• If you own tangible personal property used for the production of income (business personal property), you must annually render it to the chief appraiser. Personal property which escapes taxation because of failure to render becomes subject to back assessment when d iscovered by the appraisal district.

• You must pay your taxes on t ime.

Appointing an Agent

You may represent yourself in any property tax matter. Or, you may appoint a representative -- commonly called an "agent" -- to handle specific duties. You don't need an agent to file for exemptions, such as those available to homeowners, disabled veterans, and charitable or religious organizations -- just get an application form from the appraisal district.

To appoint an agent, you must give that person written authorization to represent you. You must use a special "Appointment of Agent" form 50-162, available from the Runnels County Appraisal District or State Comptroller's Office. No form is necessary if the person is your attorney, employee, or a person who is simply acting as a courier. With limited exceptions, agents who represent property owners for a fee must be licensed by the Texas Department of Licensing & Regu lation in Austin.

The agent may represent you in one or more areas that you designate on the form: to file notices of protest, to present your case before the ARB, to negotiate on value disputes, to receive notices or tax bills, or to handle any other specific action. Or, the agent may represent you for general property tax purposes.

The special form asks for a date when your authorization to this person ends. If you don't give an ending date, the agent continues to represent you indefinitely until you file a statement with the appraisal district ending the appointment or you appoint a new agent.

By law. the appraisal district cannot recommend or refer you to a tax agent. If you have a complaint about a tax agent. you may file it online with the Department of licensing and Regulation at http://www.license.state.tx.us.

Setting the Tax Rates

Once the appraisal review board approves the appraisal records. the chief appraiser prepares and certifies an appraisal roll for each taxing unit. An appraisal roll lists the taxable property within the boundaries of the taxing un it.

In September or October of each year. the governing body of each taxing unit adopts a tax rate that. when applied to the total taxable value of all property within the unit's boundaries. produces a tax levy sufficient to meet the unit's budgeted revenue needs.

Information regarding the rate setting process is available in a pamphlet published by the State Comptroller of Public Accounts titled Texas Property Taxes: Taxpayers' Rights, Remedies & Responsibilities. Copies are available at no charge in the Runnels County Appraisal District's office, as well as in most tax collection offices.

Collection Questions

Taxing units usually mail their tax bills in October. The normal delinquency date is February 1. but may be later depending on when the tax bill is mailed. If February 1 is drawing near and you haven't received a tax bill for the prior year, contact your local tax offices. Find out how much tax you owe and make sure your correct name and address are on file with the appraisal district since the taxing unit obtains that information from the appraisal ro ll.

In any event. the law allows you at least 21 days to pay after a tax bill is mailed to you. If your bill is mailed after January 10. the delinquency date is postponed. You have until the first day of the next month that will provide at least 21 days for paying the bill. So, if the taxing unit mails your tax bill on January 15. your taxes don't become delinquent until March 1. The delinquency date is printed on the bill.

Regular penalty charges may be as high as 12 percent. depending on how long the tax remains unpaid. Interest is charged at the rate of 1 percent per month, and interest continues to accrue as long as the tax remains delinquent. There may also be an additional 15 percent penalty added if the taxing unit hires a private attorney to collect the delinquent taxes.

't

Texas law requires you to comply with tax payment requirements before delinquency if you plan to file motions with the appraisal review board alleging failure of the appraisal district or ARB to send you a required notice, if you file a pre-delinquency motion asking correction of a substantial error (an over appraisal of at least 1/3), or if you plan to appeal an appraisal review board determination to district court. In these instances, you must pay the amount of taxes due on the portion of the taxable value of the property that is not in dispute or the amount of taxes imposed on the property in the preceding year, whichever is greater; or the amount of taxes due on the property under the order from which the appeal is taken.

How to Get More Information

Additional information regarding functions handled by the Runnels County Appraisal District is available on this website (runnelscad.org). You may also visit the appraisal district's offices to obtain pamphlets on these same subjects or to visit with trained customer service staff. The appraisal district can answer your questions about property values, exemptions, agricultural or timber appraisal, and protests to the appraisal review board.

Most property tax records are open to publ ic inspection. The appraisal district can provide appraisal and exemption related information in hard copy form. Runnels County Appraisal District information is available on the district's website.

Your taxing units can answer questions about tax rates and tax bills. Major taxing units in Runnels County are listed under the resources-links tab of the website.