I've received a lot of inquiries and emails from folks regarding the upcoming propositions related to real estate - specifically propositions 2,3 and 5. It's tough for us to figure out who to believe...
With that said, I was talking with my trusted colleague Avis Wukasch (current Commissioner for the Texas Real Estate Commission and former chair of the Texas Association of Realtors) about this topic this morning and she sent me the below op ed piece that will be provided to local papers around the state. Thought it worth passing along to you as it may provide some clarification on nebulous language. Additionally, if you'd like another resource - please visit: http://www.texasrealestate.com/web/3/34/index.cfm.
As always, I'd love your comments and input.
Kiersty
OP ED:
"Voting for Props 2, 3 & 5 will improve our property-tax system
I haven’t met a Texan yet who wants to pay more property taxes. If you’re not careful, though, you might vote to do exactly that. In fact, somebody out there is encouraging you to. I’m not sure who is behind this misinformation campaign or why, but I’d like to set the record straight.
The misleading e-mails I’ve seen seem reasonable. They ask you to vote against Propositions 2 and 3. They even accurately quote the ballot language for those propositions. But they whiff completely on what the propositions mean.
That’s the problem with constitutional-amendment ballots—the proposition language often is just complicated enough to be confusing. Whoever’s sending the e-mails takes advantage of that haziness to state that Propositions 2 and 3 will allow the state of Texas to “start taxing Residential Homeowners.” Not even close.
Here’s the actual ballot language for Proposition 2: "The constitutional amendment authorizing the legislature to provide for the ad valorem taxation of a residence homestead solely on the basis of the property’s value as a residence homestead." All this means is that the appraisal district has to appraise your home as a home.
Currently, county appraisers can use the “highest and best use” method. So if your residence has the potential to be used for something more valuable—a commercial property, for example—your home could be appraised on that possible use rather than its existence as your home. This is especially worrisome for people with houses near commercial developments and houses not covered by tight zoning standards.
Proposition 3 will appear on the ballot as follows: "The constitutional amendment providing for uniform standards and procedures for the appraisal of property for ad valorem tax purposes." Here’s the translation: Tax-appraisal methods in our county probably differ from those used in many other Texas counties. There are no uniform standards, no oversight.
One of the hallmarks of a fair system is a single set of rules for everyone. Proposition 3 would give the state the ability to make sure appraisal methods are consistent throughout the 254 Texas counties. With state funding for public schools based on the taxable property in each school district, it makes sense to ensure that property values are derived from the same procedures.
While I’m at it, I’d like to mention Proposition 5. This amendment would give two appraisal districts the ability to consolidate their boards of equalization, or appraisal review boards. These bodies hear formal protests from taxpayers who believe their properties were unfairly appraised. Some appraisal districts in rural counties have had difficulty finding enough qualified people to serve on these boards. The amendment will help those counties provide an appraisal process that is handled professionally and in a timely manner. It doesn’t require consolidation; it simply offers it as an option.
All three of these propositions will help us take a few steps toward a better property-tax system. Don’t be led astray. Now that you know what these measures will mean for Texans, I encourage you to get to the polls on November 3 and vote for Propositions 2, 3 and 5."
