THE SPECTATOR: PROPERTY VALUATIONS
This Sunday, June 30th, is the deadline for the owners of commercial property in Washington County to file a protest over their property valuation. Just as the Washington County Tax Appraisal Office did with residential property, they’ve increased the appraised value of commercial property by ridiculous percentages in just one year. Our company alone has seen increases of between 242% and 414% on the appraised value of land. Thank goodness the Texas Legislature put in a cap of 20% increase for non-homestead property this year, otherwise our taxes would be doubled or even quadrupled. Appraisers seem to have lost any perspective of the logical and sane. I’ve even had an appraiser for Burleson County argue with me that a 32-year-old communications tower can appreciate in value based on the cost to build a new one. Really? An old tower becomes more valuable over time, even as its lifespan gets shorter? That logic is a tough sell, at least to me.
Yes, I realize that our local tax appraisal offices are under pressure from the State to constantly increase property values. But when does it end? You can’t just arbitrarily assign the same dollar amount per square foot to every piece of land in an area, when each has its own characteristics. The appraisers will tell you they follow a formula and that there is a method to this madness. But to me, I don’t see it. Once of our buildings downtown has seen a 708% increase in valuation in just 5 years! If you are not happy with your commercial property valuation, I encourage you to take a few minutes and file a protest. You have through this Sunday to do it.
And that’s the way it looks to this Spectator.
Protest every year to start.
Secondly, the non profits and the Churches especially the Churches should be paying at least something.
Bottom line, protest.
Great take and I agree with you Tom. Everyone should be protesting every year. There are usually valid grounds to produce a case using one strategy or the other. And, as the other poster said, functional obsolescence is a valid protest grounds and it sounds like that would be an easy argument on your transmitter tower. Just write up a big technical explanation with some VSWR calcs or something that they cannot understand enough to prove you wrong!
On another note, over the years, I have come to the conclusion that some people love the fact that their CAD property values go up because they feel like they are rich and can have something to brag about. The value of the property is what someone is willing to pay for it based on comparable sales, not the CAD value. I will never understand how some people’s minds work.
Not seeing the big picture yet? Remember that we the people denied them 140 million dollar bond for the school….twice.
That money is going to come from somewhere. They will continue to squeeze until there is no blood left in the turnip.
This is nothing new. It’s always amazed me that my property valuation grows just enough EVERY YEAR so that they can increase my taxes to the statutory max amount.
Crazy numbers I’m sure they have a formula to go by but I also think greed plays a little part in it as well, dont you think
Spectator?
Why will this continuous increase in valuations and property taxes not cease? Because Texas does not have a state income tax. If a state with the robust growth of Texas had an income tax, then the revenue ( collected taxes) would grow every year according to increases in profits and wages. Texas is one of the very few states without an income tax. And having lived in a state with income tax I can say that the very low and below average wage earners paid none to very little in state income tax. If the state income taxes are levied fairly, the above average wage earners and very profitable businesses pay the majority of state income tax. But everyone, even renters pay property taxes, even when their income does not grow.
But as you say, the “state “ pressures the appraisal district to raise valuations. Then the “state” places a cap of 20% of business property tax, there by securing another election cycle of support of business owners.
More of the counties rural properties are being divided into 10 plus acre parcels. The result being a continual increase in AG exempt properties which get a significant property tax decrease. Over a million dollars of prime rural property pays less than $200 per year in priory taxes is a common thing. So, the remaining properties which do not enjoy these exemptions must bear the brunt of the property tax revenue. So, Spectator, you are correct, this cannot continue, because decades down the road, only the wealthy will be able to own property in Texas.
Having also lived in a state that had income tax it was frustrating to see the money always going to the places the party in charge decided. This is also coming from someone who’s party is currently in charge of Texas. I personally prefer Texas way of paying your fair share based on your expense choices. The wealthy won’t want the land if there is no value in it. Business creates value. When the businesses leave for no income tax states like they are doing here then you can buy all the useless land you would like. Cities have to compete for business in Texas with each other. Competition breeds success. And if you believe adding a state income tax will lower your property taxes at this point then well…
Why do we even have a very high property tax? When we have all these 501 C tax exempt entities that are mostly money laundering outfits in the name of whatever and call it for the good of mankind. I say we need a flat tax so everyone pays their fair share. That’s what happening a the border all these non profits enabling this madness! Get rid of the 501 C and close the loopholes so we are not punishing taxpayers while the crooks figure out more scams.
Replacement value is just one of the accepted approaches to appraisal. Another is income value and functional obsolescence is a valid consideration.