Appraisal reform

The right way to fix the broken property appraisal system is to:

1. Require appraisers to adhere to uniform standards;
2. Enforce those standards at the statewide level;
3. Create a new appraisal appeal process to ensure independence from the appraisal district; and
4. Adjust the tax-rate calculation to ensure local taxing districts don't realize a windfall when property values increase.

Effective tax rates
According to the state comptroller's office, "The effective tax rate enables the public to evaluate the relationship between taxes for the preceding year and for the current year, based on a tax rate that would produce the same amount of taxes if applied to the same properties taxed in both years." Basically, as property value rises in a district, the tax rate is reduced to raise the same amount of tax revenue from the year before. Effective tax rates are calculated after the chief appraiser certifies the appraisal roll to the local taxing jurisdictions.

Unfortunately, the calculation of an effective tax rate is complicated and, in some cases, requires over 30 different steps to calculate. In addition, the effective tax rate calculation allows taxing jurisdictions the ability to realize additional property tax revenue from an increase in local property values.

We support legislation that changes how an effective tax rate is calculated to ensure no new revenue is realized by local taxing jurisdictions when local property values increase.