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As homeowners and taxpayers, we deserve more than a quick fix
For most of us, the only time we think about property taxes is when we get the annual appraisal notice on our home’s taxable value. It’s a well-documented fact that property taxes in Texas are among the highest in the nation. Incredibly, some officials—even a few who are close to home here in Bexar County—expect us to believe there’s a quick fix. That disclosing the sales prices of our homes will magically solve our problems.
Did you know?
San Antonio area lawmakers introduced ”sales price disclosure” legislation in the 81st session claiming proposed bills would lead to equitable and fair property taxes.
State Representative Michael Villarreal’s House Bill 133 and Senator Jeff Wentworth’s Senate Bill 444 were short-sighted and would have been bad for Texas homeowners. Bexar County Chief Appraiser Michael Amezquita and the San Antonio Express-News also advocated for mandatory sales price disclosure. But disclosure wouldn’t solve our problems, but would potentially make things worse.
Sales price disclosure violates private property rights and, as proven in other states, does not lead to fairness in taxation. It does, however, lead to the introduction of new taxes for property owners. Three-quarters of states that have real estate transfer taxes started with sales price disclosure. One is typically precursor to the other. Skeptical? Read this 50-state analysis from the National Council of State Legislatures and the Federation of Tax Administrators.
The issues
There are some who believe that mandatory sales price disclosure is a silver bullet that will fix property appraisals, but like so many other things that sound too good to be true, it is.
In Texas, the amount you pay for your property is between you and the seller. We believe it should stay that way because Texans deserve privacy in their real estate transactions.
Others believe that making that information available to the public, including property appraisers, will make appraisals more accurate. However, without a uniform set of standards for property appraisals, sales price disclosure would simply be another tool added to a broken system, like a new speedometer in a car that doesn’t run.
Unfortunately, sales price disclosure has also been shown to be ineffective in improving the accuracy of property appraisals in Texas. Through agreements with local Multiple Listing Services, many appraisers in Texas already have access to sales price data. In using that data, however, it’s been discovered that sales price is often misused.
Better ideas
There are solutions to the flawed property appraisal process we currently have in Bexar County and statewide. Here are some of those solutions:
• Continue to lower property tax rates.
• Require appraisers to adhere to uniform standards in property appraisals, specifically the Uniform Standards of Professional Appraisal Practice set forth by The Appraisal Foundation.
• Enforce those standards at the statewide level by giving the Texas Comptroller’s Office enforcement authority over the appraisal districts throughout Texas.
• Create a new appraisal appeal process to ensure independence from the appraisal district.
• Adjust the tax-rate calculation to ensure local taxing districts don’t realize a windfall when property values increase.
Now that the 81st Legislative Session has concluded, let's watch for developments on legislation enacted during this last session to create more consistency, uniformity and transparency in the appraisal process. The 82nd session is set to begin in 2011. Contact your legislator and let them know that you are watching and waiting for better measures to be set up and enacted over the coming months leading to January 2011. They are accountable and must ensure a better appraisal process results during this time for all Texans!
The problem
Mandatory sales price disclosure does nothing to fix Texas' broken property appraisal system. Worse, in 37 of 40 states, mandatory sales price disclosure has been the precursor to new sales taxes on real estate, also known as real estate transfer taxes. Transfer taxes are just another form of property tax. San Antonio homeowners already pay way too much.
The solution
We're leading the fight for legislative reforms to ease the long-term financial burdens on San Antonio's homeowners.
Perspectives
This is an important issue and we want you to hear many sides. Unfortunately, many folks only hear the side of this story that the news media choose to tell.
Spread the word -
How TREPAC
Works for You |
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Dear TREPAC Investor:
I bring not good, but great news. All Texas Association of REALTORS®-supported propositions passed in last week’s statewide constitutional election.
Propositions 2, 3, and 5—the appraisal reform package—improve the property appraisal process, giving homeowners a fairer shake with our annual property evaluations for tax purposes.
Proposition 11 strengthens property owner protections from government’s unfair taking of private land and homesteads through eminent domain.
Not every association manages to get constitutional amendments on the ballot, much less passed. We’ve had six in the last three years, including Proposition 6 from two years ago, exempting Texas REALTORS® from an unfair mixed-use vehicle tax.
When you think about how good we have it in Texas, both for ourselves and Texas homeowners, think about TREPAC. Election season is upon us, and that’s when TREPAC really goes to work. TREPAC helps elect political candidates who share our values—protecting private-property rights and advancing public policies that support home ownership.
And remember: Part of your TREPAC investment goes to national RPAC, which just last week was instrumental in convincing Congress to extend and expand the home buyer tax credit.
Your past TREPAC investments have directly contributed to your ability to make a living in real estate and advocate for private-property owners here in Texas. Thank you for continuing to invest in your future, either through your local association or online at TexasRealtors.com /TREPAC.
Sincerely,
RC “Skeet” Doss
2010 TREPAC Chairman
P.S. To let other Texas REALTORS® know about TREPAC, encourage them to visit TexasRealtors.com/SpreadTheWord.
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What has Occurred in the 81st Legislature
SUPPORTED APPRAISAL REFORM
Our position: Support efforts to make the appraisal process more transparent and to make appraisal entities more accountable and efficient.
Legislative activity: All of association-backed appraisal reforms passed. H.B. 8 would ensure increased oversight of appraisal districts. H.B. 3613 allows for a residential homestead to be appraised as a residence, not on the basis of the “highest and best use” appraisal standard. S.B. 771, among other things, would mandate updated appraisal methods, give consumers alternatives to costly lawsuits when appealing a ruling by an appraisal review board, and add CPAs to the list of people qualified to act as arbitrators. H.J.R. 36 proposes a constitutional amendment to make appraisal practices more uniform.
Status: H.B. 8, H.B. 3613, and S.B. 771 were sent to the governor. H.J.R. 36 will be placed on Nov. 3 ballot.
OPPOSED MANDATORY SALES-PRICE DISCLOSURE
Our position: Oppose efforts to mandate disclosure of home sales prices.
Legislative activity: The Texas Association of REALTORS® stopped all proposals (H.B. 133, S.B. 444, and H.B. 2257) calling for mandatory sales-price disclosure.
Status: H.B. 133, S.B. 444, and H.B. 2257 were defeated in House committee.
About us
This initiative for a better property tax solution is led by the San Antonio Board of REALTORS® and the Texas Association of REALTORS®.
Representing the largest professional membership associations in San Antonio and Texas, respectively, we advocate on behalf of REALTORS® and homeowners. It is our mission to protect private property rights, support the free enterprise system, reduce the state's over-reliance on property taxes, and promote public policies that benefit homeowners.
What we stand for
As REALTORS® and homeowners, we advocate a two-step approach:
• Lower property tax rates.
• Reform the appraisal system.
To learn more about the San Antonio Board of REALTORS®, visit our home page. To learn more about homeownership opportunities in our state, visit TexasRealEstate.com.
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