Time for Reform in Texas Appraisal Districts
This week, I’ll be meeting with a group of judges from House District 17 to discuss priorities for the next legislative cycle and the issues we believe need to be addressed. Last week’s article spoke about some of those concerns, including the need to give counties a greater degree of regulatory authority when dealing with incoming industry, and to allow counties to address those developments without relying solely on agreements such as tax abatements.
Another item on that short list is what I often describe as a “two-headed monster” that many people understandably find confusing: the relationship between the Tax Assessor-Collector’s Office and the Appraisal District. The confusion is understandable because, in some counties, portions of these functions have been combined. However, in Milam County, as is the case in roughly two-thirds of Texas counties, they are distinct and separate entities. One is a county office, while the other is not.
The Tax Assessor-Collector’s Office is operated by an elected official. Currently, Frank Summers is serving as Interim Tax Assessor-Collector following the resignation of his predecessor. That office calculates the tax rate “open window” that each taxing entity uses when determining the actual tax rate it will adopt. In addition, the office collects taxes and handles DMV registrations for cars, trucks, trailers, and other vehicles. Commonly referred to simply as the “tax office,” the Tax Assessor-Collector’s Office is a county office.
The Appraisal District, on the other hand, is a separate entity created under the laws of the State of Texas. It is directly tied to the state Comptroller’s office and governed by a five-member board of directors appointed based on the voting strength of the taxing entities served by the district. In reality, the county is simply one client among many and has no more and no less authority over the Appraisal District than cities, school districts, water districts, or any other taxing entity that the district serves.
Every tax season, especially during the period when appraisal notices are mailed and protests begin, I receive many calls and visits from citizens expressing frustration, concern, or outright anger toward the Appraisal District. As a property owner myself, I understand those frustrations because I receive the same appraisals. However, there is very little direct authority that I, or the county government generally, have over the Appraisal District beyond raising concerns through the appropriate state channels, including the Comptroller’s Office. Unfortunately, many local officials across Texas feel those concerns often receive little attention from Austin.
This has become a common issue discussed by county judges across the state. While many of us in House District 17 have shared these concerns for some time, this year we intend to work toward legislation aimed at reforming how Appraisal Districts operate and evaluating whether the current system truly serves taxpayers as intended.
Recently, I attended two separate training conferences where I had the opportunity to sit down with county judges from across Texas and discuss priorities for the upcoming legislative session. Almost unanimously, the judges agreed that the time has come for some form of publicly elected representation within Appraisal District governance. Whether that means the members of the Appraisal District Board of Directors as well as the Chief Appraiser become publicly elected positions, many judges believe taxpayers deserve direct representation in a system that has such a significant impact on property owners.
Late last year, I wrote an article discussing Appraisal Districts in greater detail. The concerns county judges have regarding these districts are numerous and, at times, highly complex. After extensive discussion with judges across the state, there appears to be broad agreement that reform is needed. It is our hope that, when the Legislature convenes early next year, this will be one of the issues placed squarely on the table so that the people of each county have the opportunity to elect representatives and a Chief Appraiser from their own communities to help oversee the Appraisal Districts that affect them.
If this is truly a representative government, then it’s time for all of us to have a say about who serves in these positions that touch each of us so closely.
