Property tax group urges taxpayers to demand reform

Bob Casale, who has formed the Appraisal and Property Tax Watch Dog Group, spoke at a Houston Property Rights luncheon in May about his group's efforts to reform the appraisal process in Harris County. He has given citizen input to the Governor's Task Force on Appraisal Reform, and has attended hearings at the Texas House Select Committee on Property Tax Relief and Appraisal Reform.

At the meeting, Casale outlined some of the problems he sees in the current appraisal system, and suggested some possible solutions.

He says most taxpayers are not aware that the City and County contribute millions each year to the HCAD budget. Other taxing authorities, like the Port of Houston and community colleges, also contribute to the budget. He sees this as a conflict of interest. "This all goes into supporting the Appraisal District," he says, "so that it can continue to tax and replenish their coffers."

He also points out that these local taxing entities appoint the appraisal district Board of Directors, who in turn appoint the Appraisal Review Board members, and hire and fire the chief appraiser. Casale says that a separate board composed of property owners, similar to a citizens' review board, is needed to hear taxpayer complaints about Appraisal Review Board decisions on their tax protests.

Another problem as he sees it is the "highest and best use" appraisal standard. Casale feels that the use of property should be at the discretion of the property owner. House Bill 3613, passed on April 27, calls for residential homesteads to be appraised as such, not according to their "highest and best use." The bill has not yet been signed by Governor Perry.

Casale also questions the income approach to the value of commercial property. Section 23.012 of the Tax Code allows the chief appraiser to analyze and compare rental income, operating costs, and projections of future income in appraising value. Casale feels that this appraisal method could be considered a form of state income tax.

He believes the Robin Hood system of school funding should be replaced. The current system requires money collected from higher property values in one school system to be sent to other districts to equalize school funding. In order to equalize funding, the State Comptroller's Office conducts a Property Value Study every year. If the local appraised value of the school district falls outside a five percent margin of error according to the Comptrollers findings, then the value of the study is used instead. Although State law only requires appraisal districts to appraise every three years, many appraise annually to avoid falling outside the margin of error. However, a bill passed in the legislature this session would allow the Comptroller to conduct a value study every other year. This bill has also not been signed by the Governor. This could possibly reduce the appraisal districts' push for annual appraisals.

In summary, Casale says the appraised values of houses in Houston are too high. He believes that one of the main reasons for decaying economic conditions in the U.S. is an inflated real estate market created by the appraisal district system. He says taxpayers need to contact their State representatives and demand reform in the appraisal system.

"They need to know there is a group out there like us trying to help. People must stand up and be counted; otherwise the problem will only get worse." Bob Casale can be reached at 713-516-7087 or m.casale@sbcglobal.net.

(The Banner, June 11, 2009)