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Sunday
March 14, 2010 Since 1922 |
Propositions 2 and 3 protect homeowners
Rep. Wayne Smith
Correspondent Published October 29, 2009 Harris County homeowners have long felt the pressures of appraisal creep and growing property tax burdens. Area residents have consistently called for lower appraisal caps and broader property tax relief. While we still have a long way to go, Proposition 2 and Proposition 3 take steps in the right direction.
Proposition 2 reads: “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.”
Proposition 3 reads: “The constitutional amendment providing for uniform standards and procedures for the appraisal of property for ad valorem tax purposes.”
Some have interpreted this ballot language to authorize a statewide property tax or, worse yet, increase property taxes. This is not the case and was at no time ever the intent of these proposals. If approved by Texas voters on Nov. 3, Proposition 2 and 3 (Prop 2 and 3) would protect certain homeowners from an appraisal process that could force many from their homes.
First, I will discuss Prop 2: Currently, homes are appraised on the basis of their “highest and best use.” Appraisal districts using this standard may appraise a home at a value based on its commercial potential rather than its actual use as a home. For example, a home located near a shopping center may be appraised as a retail shop or residences near a condominium complex may be appraised as commercial property.
Proposition 2 fixes the problem of “highest and best use” appraisals for Texas homeowners. The proposition would require that the market value of a residence homestead be determined by its value as a residence. Thus, your home would be appraised as a home, and not as something else.
Then we have Prop 3: The Texas Constitution requires that administrative and judicial enforcement of uniform standards and procedures for the appraisal of property for property tax purposes originate in the county where the tax is imposed.
While local control is vital to the efficient operation of our state the problem here is twofold.
First, the state allocates funding to public schools based on the per-student aggregate taxable property value in each school district. This means an area like ours actually sends money to other parts of the state for education and we should expect that another area is not undervaluing their property in order to receive more of our hard earned dollars. Second, appraisal procedures lack consistency and much confusion exists when estimating taxes for a homeowner that owns property in, or moves to another county.
Proposition 3 fixes the problem of uniform appraisal standards by giving the legislature discretion to prescribe the manner of the enforcement of appraisal standards and procedures. Hearing someone say “we lowered your taxes” only to be disappointed when you receive a tax bill with a higher number than the previous year, is all too common. We can expect that with uniform and transparent standards in place it will be easier to predict our annual tax bill and harder for taxing authorities to hide behind fluffed up appraisals when increasing your tax burden.
Voter approval of these propositions would not end the need for further property tax reforms in Texas. I firmly believe that a lower residential appraisal cap needs to be established. I have worked in past legislative sessions to pass this measure and will continue the fight.
To me, these propositions represent a fair, commonsense answer to property tax appraisal problems that have plagued Texas homeowners for too long. The propositions do not aim to increase property taxes or establish a statewide property tax.
However, as is always the case if you do not feel the Legislature’s proposals best serve your needs I encourage you to do your own research and decide what is right for you and your family.
It is an honor to serve as your representative in Austin and I look forward to the opportunity to serve your needs in the future.
Representative Wayne Smith represents Baytown, Deer Park, La Porte, Morgan’s Point and portions of Pasadena and the unincorporated areas of Harris County. Rep. Smith is on the County Affairs Committee and also serves on the Transportation Committee. You may call his office toll free at 866-423-5987.
Correspondent Published October 29, 2009 Harris County homeowners have long felt the pressures of appraisal creep and growing property tax burdens. Area residents have consistently called for lower appraisal caps and broader property tax relief. While we still have a long way to go, Proposition 2 and Proposition 3 take steps in the right direction.
Proposition 2 reads: “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.”
Proposition 3 reads: “The constitutional amendment providing for uniform standards and procedures for the appraisal of property for ad valorem tax purposes.”
Some have interpreted this ballot language to authorize a statewide property tax or, worse yet, increase property taxes. This is not the case and was at no time ever the intent of these proposals. If approved by Texas voters on Nov. 3, Proposition 2 and 3 (Prop 2 and 3) would protect certain homeowners from an appraisal process that could force many from their homes.
First, I will discuss Prop 2: Currently, homes are appraised on the basis of their “highest and best use.” Appraisal districts using this standard may appraise a home at a value based on its commercial potential rather than its actual use as a home. For example, a home located near a shopping center may be appraised as a retail shop or residences near a condominium complex may be appraised as commercial property.
Proposition 2 fixes the problem of “highest and best use” appraisals for Texas homeowners. The proposition would require that the market value of a residence homestead be determined by its value as a residence. Thus, your home would be appraised as a home, and not as something else.
Then we have Prop 3: The Texas Constitution requires that administrative and judicial enforcement of uniform standards and procedures for the appraisal of property for property tax purposes originate in the county where the tax is imposed.
While local control is vital to the efficient operation of our state the problem here is twofold.
First, the state allocates funding to public schools based on the per-student aggregate taxable property value in each school district. This means an area like ours actually sends money to other parts of the state for education and we should expect that another area is not undervaluing their property in order to receive more of our hard earned dollars. Second, appraisal procedures lack consistency and much confusion exists when estimating taxes for a homeowner that owns property in, or moves to another county.
Proposition 3 fixes the problem of uniform appraisal standards by giving the legislature discretion to prescribe the manner of the enforcement of appraisal standards and procedures. Hearing someone say “we lowered your taxes” only to be disappointed when you receive a tax bill with a higher number than the previous year, is all too common. We can expect that with uniform and transparent standards in place it will be easier to predict our annual tax bill and harder for taxing authorities to hide behind fluffed up appraisals when increasing your tax burden.
Voter approval of these propositions would not end the need for further property tax reforms in Texas. I firmly believe that a lower residential appraisal cap needs to be established. I have worked in past legislative sessions to pass this measure and will continue the fight.
To me, these propositions represent a fair, commonsense answer to property tax appraisal problems that have plagued Texas homeowners for too long. The propositions do not aim to increase property taxes or establish a statewide property tax.
However, as is always the case if you do not feel the Legislature’s proposals best serve your needs I encourage you to do your own research and decide what is right for you and your family.
It is an honor to serve as your representative in Austin and I look forward to the opportunity to serve your needs in the future.
Representative Wayne Smith represents Baytown, Deer Park, La Porte, Morgan’s Point and portions of Pasadena and the unincorporated areas of Harris County. Rep. Smith is on the County Affairs Committee and also serves on the Transportation Committee. You may call his office toll free at 866-423-5987.