SPEAKER OF THE HOUSE CREATES YET ANOTHER COMMITTEE TO STUDY PROPERTY TAXES
House Speaker Tom Craddick has announced the creation of the House Select Committee on Property Tax Relief and Appraisal Reform. The Speaker’s office said the committee “will oversee all matters relating to property tax relief and reforming the property appraisal system.”
“The House is committed to doing everything it can to provide meaningful and responsible property tax relief to those who are strained by the burden of soaring taxes,” Speaker Craddick said. “…I have full confidence that the members of this committee will come together and create a workable solution to this issue.”
The committee will review the sections of the Texas Constitution and the tax code that limit or authorize limiting the appraised value or increases in the appraised value of property for tax purposes.
The committee will have thirteen members. Rep. John Otto (R-Dayton) will chair the committee, and Rep. Ken Paxton (R-McKinney) will serve as vice-chair.
The following information on each committee member includes the member’s recent activities relating to property tax issues or other city-related legislation, and the member’s votes on two key issues in 2005: one on appraisal caps (H.J.R. 35) and one on property tax revenue caps (H.B. 1006). (Note: there were no key House votes on either issue during the 2007 session.)
Rep. John Otto (R-Dayton)—in 2007, filed a bill that would have relaxed the state’s requirements for the accuracy of appraisals generated by central appraisal districts. (That bill passed the House but failed in the Senate.) Was a key player in the passage of the school finance reform legislation that passed in 2006. In 2005, voted against the TML position on both appraisal caps and property tax revenue caps.
Rep. Ken Paxton (R-McKinney)—in 2007, pushed for legislation that would have: (1) required cities to maintain detailed records of expenditures for communicating with legislators, and (2) required lobbyists who work for cities to keep detailed records of their activities. In 2005, voted against the TML position on both appraisal caps and property tax revenue caps.
Rep. Drew Darby (R-San Angelo)—wasn’t in the legislature in 2005.
Rep. Gary Elkins (R—Houston)—has actively opposed cities’ use of red light cameras. In 2005, voted against the TML position on both appraisal caps and property tax revenue caps.
Rep. Kino Flores (D-Palmview)—chairman of the House Licensing and Administrative Procedures Committee. In 2005, voted for the TML position on both appraisal caps and property tax revenue caps.
Rep. Dan Flynn (R-Van)—in 2005, voted against the TML position on both appraisal caps and property tax revenue caps.
Rep. Dan Gattis (R-Georgetown)—in 2005, voted against the TML position on both appraisal caps and property tax revenue caps.
Rep. Joe Heflin (D-Crosbyton)—is a former city official and county official. In 2007, won the TML Legislator-of-the-Year Award in the Texas House of Representatives. Sponsored and passed TML-backed legislation relating to mayoral vacancies. Wasn’t in the legislature in 2005.
Rep. Phil King (R-Weatherford)—chairman of the House Regulated Industries Committee. Was the House sponsor of the 2005 cable competition legislation that created the statewide franchising scheme for cable television services. In 2005, voted against the TML position on both appraisal caps and property tax revenue caps.
Rep. Tracy King (D-Batesville)—chairman of the Border and International Affairs Committee. In 2005, voted for the TML position on both appraisal caps and property tax revenue caps.
Rep. Ruth Jones McClendon (D-San Antonio)—chair of the Rules and Resolutions Committee. Former member of the San Antonio City Council. In 2005, voted for the TML position on both appraisal caps and property tax revenue caps.
Rep. Chente Quintanilla (D-Tornillo)—in 2005, voted for the TML position on both appraisal caps and property tax revenue caps.
Rep. Larry Taylor (R-Friendswood)—in 2005, voted against the TML position on appraisal caps and was absent for the vote on property tax revenue caps.
Some members of the committee have already made public comments about their appointment. Rep. Otto said in a press release from the speaker’s office that the “issue of property tax increases continues to frustrate property owners who feel the system is too subjective and unfair.”
Rep. Flynn told the Greenville Herald Banner that “property taxes are intolerable and unjust…despite billions of dollars in legislatively-approved property tax rate relief, local rates, appraisals, and bond debt continue to push property tax bills even higher.” He added that “no one ever truly owns their home,” because if a homeowner fails to pay a property tax bill, “the government can evict the homeowner and seize the property.”
Rep. Phil King said, “the property tax system is broken beyond repair. It should be methodically phased out through a dedication of state tax surplus and sales tax revenue. It is a barrier to home ownership and propels Texans into foreclosures.”
There are now four interim legislative committees studying appraisals and/or tax limitations. In addition to this new, select committee:
- The House Committee on Appropriations is examining spending limit methodologies found among the various states as they impact state and local spending.
- The House Committee on Local Government Ways and Means is studying numerous aspects of the system for appraising property for property tax purposes.
- The Senate Committee on Finance has a Subcommittee on Property Appraisal and Revenue Caps, which has been charged to:
- The duties and responsibilities of chief appraiser and appraisal districts;
- Any abuses that occur in the appraisal process;
- The process of appointing the members of boards of directors of appraisal districts;
- The impact of adding members to the boards of directors of appraisal districts who are not appointed by the taxing jurisdictions of the district and methods for appointing these additional directors;
- The usefulness of information provided in a notice of appraised value;
- The impact of HB 1010, 80th Legislature, Regular Session, relating to appraisal districts crossing county lines;
- Any benefit from requiring more uniformity in appraisal standards used by appraisal districts;
- Any revisions to the property valuation appeal system that could reduce the cost of dispute resolution;
- The likelihood of, and any associated benefit from, increased compliance with the existing business personal property rendition law if chief appraisers are given limited audit authority.
(1) Review the property tax appraisal system, including the following:
(2) Study the benefits and limitations of property tax appraisal caps compared to a limit on revenue a local jurisdiction can receive without the approval of the voters in the locality. Consider alternative sources of funding to replace property tax revenues.
The League will keep its members informed of the meetings and deliberations of these committees.