Taxpayers for Equal Appraisal Access Information!
Taxation must be equal and uniform!

Property taxes must be equal and uniform.
Protesting taxes must be a fair and equitable process.
All property must be valued and taxed equally and uniformly.

Taxpayers for equal appraisal!
-TEA-

Email us:  coachdanhart@msn.com

HCADTEA.ORG is a non-profit organization established to help you understand how to protest your property taxes, both real property and business property, so that you can save money. 

Coach Hart says: "Taxpayers should know, 'Who is saying what and why!' " $$$

Here are six important items to further help you know who, why, why, where and when to protest your property taxes: 1.  Common causes unite. / Unequal causes divide. March 7, 2002 THE HONORABLE MEMBERS Joint Select Committee on Public School Finance c/o Rhonda McCollough, Committee Director 435 Sam Houston Building Austin, Texas 78711 MEMBERS OF "WE THE PEOPLE", Common causes unite. / Unequal causes divide. " No greater asset accrues to the appraiser than uniformity in appraisal. Nothing so discourages complaint. On the other hand, from the standpoint of the public, nothing so stimulates resentment, revolution, and rebellion as a feeling of discrimination or favoritism in taxation. The greatest asset of merchant, manufacturer or real estate owner is his/her sense of security in the enjoyment of equality of appraisement with his neighbor. " John A. Zangerle, Cayuga County, Ohio, Assessor 1930’s The Honorable Comptroller, Carole Keeton Rylander, was mailed a letter of February 4, 2002 from Mr. Craig Foster, public member of the joint select committee which contained the following quotes: " I remember, for example, when petrochemical plants were routinely appraised over three-martini lunches, and state aid to schools was heavily impacted by the competitive under valuation of that and other types of property." " Today, there could easily be $200 billion – probably more - in taxable value missing from school tax rolls, including, as you know, a substantial amount of business personal property. Each $100 billion found would increase the funding capacity of our schools by $1.8 billion per year. Many school districts that are, or soon will be, at the $1.50 M&O tax rate cap could have more revenue at lower rates. " I, Coach Dan Hart, Chairman of Taxpayers for Equal Appraisal (www.hcadtea.org) carefully listened and video taped a part of the meeting of February 7, 2002. I concur generally with Mr. Foster’s letter as enumerated by his three goals. In this letter I am focusing on his goal number 2: "To ensure that all taxpayers contribute their fair share to the state’s public school system, allowing only for differences in local tax rates." I agree generally also with my good friend, TCAD Chief Appraiser, Mr. Art Cory’s letter to Mr. Foster of January 29, 2002 which was date stamped Feb 05, 2002 by your committee. Mr. Cory states: "The appraisal process and the property value study performed by the Comptroller’s office are absolutely dependent on sales information. Taxpayers for Equal Appraisal (TEA) hopes the committee will take a fresh look at both processes which cause billions of dollars to leave the pockets of Texas taxpayers yearly. TEA, with help of the Comptroller’s Office, provides "School and Appraisal Districts’ Property Value Study" booklets with Equal Equity for Taxpayers & Schools with annotations. Please start your fresh look on page 13 titled "Purpose of and methods used in the Property Value Study." On page 15, Purpose of the Property Value Study starts with the Texas Government Code Section 403.302 but if you will turn back one inserted page you will see the "Rest of the Story" from the people who give the money’s perspective not the people who get the money. Please read carefully the Texas Government Code Section 403.301 purpose: and reflect back to its Law as you do the right thing for all Texans. Mr. Cory notes that in fact the Property Value Study is also called a sales ratio study. TEA again provides background facts that relate to the use of sales data in CAD appraisal and the property value study. In the attached letter of April 17,1992 from Mr. Tim S. Wooten the Texas General Appraisal Manual is identified as the International Association of Assessing Officers (IAAO) book titled Property Appraisal and Assessment Administration (Red Book). In chapter 20 of the Red Book ratio studies are set forth and key factors that relate to sales data use are noted as follows: Page 518 : " Reliability requires that unsold parcels be appraised in the same manner as sold parcels " Page 525 : "Sampling is the foundation on which the ratio study is built " Page 526: " A random sample is one in which each item in the population has an equal chance of being included in the sample. Sales do not meet this strict definition because some types of property tend to sell more frequently than others. Therefore in the population of 100 homes if only 10 sell then a true equity ratio study sample would have 10% selling homes and 90% would be unsold homes. The Texas Property Tax Code in section 23.01 quote: " If an appraisal district determines the appraisal value of a property using mass appraisal standards, the mass appraisal standards must comply with the Uniform Standards of The Professional Appraisal Practice." On page 75 (attached) of USPAP 2000 edition the text subject is Retrospective Value Opinions. If an appraisal district’s EQUITY PERFORMANCE is based on RETROSPECTIVE APPRAISAL OPINION VALUES then the process is lacking in TRUTH IN TAXATION / APPRAISAL! The Comptroller’s Property Value Study uses small %’s of late sales after the certification date when the CAD can no longer change their opinion values to known sale prices to somewhat overcome the affects of CAD retrospective appraisal on the important ratio studies. Mr. Cory further remarks: "I do realize there has always been opposition to full sales disclosure, but I am in hopes that, due to current circumstances, you would take a fresh look at it." Everyone should remember only 10% of the example would be "correctly" (?) retrospectively appraised by such a fresh look. Even if CAD’S could force their way into your home and all other Texan’s homes, the CAD’s do not have enough appraisers, time or taxpayer’s money to get every home’s correct characteristics recorded to do the real life equity appraisals Texans should receive. Please carefully review pages 22, 23 and 27; Table Five and Six on Ratio Studies in the Comptroller’s Booklet provided VS the HCAD sample of Alief ISD sales ratio study. (Attached) In TEA’s opinion, even the Comptroller’s examples need more appraisals in the sample but the sales only used in HCAD’s ratio study by the preponderance of evidence shows the sale price and market value to be the exact same dollar amount. Contrast HCAD’s mirror numbers with the Comptroller’s varieties of numbers for both sales and appraisals. On page 53 of the red book it states price can and often does, result from caprice, carelessness, desperation, egotism, ignorance, pressure, sentiment, social ambition, whim, and many other things. In short, PRICE AND VALUE are not the same! The key rhetorical question to ask non selling home owners in Alief ISD is do they believe HCAD is " DEAD ON " their equity appraisal values and therefore they are paying the correct tax bill? Mr. Foster, the chief appraiser for Cameron County, Mr. Mike Amezquita, and many others have commented on the issue that many properties of different types are under valued. TEA simply provides data on 2 court cases that provide insight on the issue. The first case is noted in TEA’s white paper titled "WHAT CAN SMALL CLAIMS COURT TAX APPEAL DO FOR YOU? TEA’s white paper also has 2 important letters in it from Lieutenant Governor Bill Ratliff and Mr. G. Michael Wilson on the issues. The Fourteenth Court of Appeals Case No. 14-00-00374-CV deals with many important Equity Appraisal issues. But the page 9 (attached) makes the point that seven comparable properties had appraised values from $47.99 to $88.63 per square foot which relates to under and over appraisals from equity. The second case in 190 District Court: HienTrvong, Hoang Ba Le, and Patrick O’Conner & Associates, LLP, and all owners of property in Harris County, similarly situated VS the Appraisal Review Board of Harris County Appraisal District is attached by excerpts that bear on the issue. (Pages 12, 13, 20 thru 29). The last example of under appraisal is the self explanatory ratio analysis titled: "River Oaks list prices VS HCAD value." In conclusion, TEA asks why not take a fresh look at the CAD’s modus operandi? Many types of properties have a special statewide appraisal manual but homes do not! Why not? Why not have 1 source of all legal opinions on property tax matters from the Attorney General’s Office rather than 253 varieties? Why not? This could save money $ Why not have self-reporting forms from the Comptroller for all homeowners as to individual characteristics that affect the appraisal opinions by the Cads? Why not? This could save money also $ Why not let taxpayers that care about getting the correct individual characteristics on their home and therefore the correct appraisal value, self report the facts backed up with pictures, video and/or documents? Why not? Why not give the right to true trial by an impartial jury regardless of race, religion, sex, national origin or ECONOMIC STATUS, which is guaranteed to all people by the U.S. and Texas Constitution in regards to property tax appeal? Why not establish in THE PEOPLE’S COURT --- SMALL CLAIMS COURT TAX APPEALS? WHY NOT? I look forward to the opportunity to testify and respond to questions. Sincerely,   Coach Dan Hart, Chairman Taxpayers for Equal Appraisal 71 Hibury Drive Houston, Texas 77024 E-mail: coachdanhart@msn.com 713- 781- 2867   2.  Property Taxpayers must fine "Better ways to build a better mouse trap!" -- for your kitchens and your homes.   Dear Texans, March 12, 2002 We are all part of The Lake of Texas funding pool. In large measure, our present individual contributions to keep The Lifeboat of essential government services afloat are like a lake with various depth levels. Today’s funding pool lake has been created by a Log Jam or Beaver Dam construction which we all should strive to break up to allow the taxation flow to spread out evenly across The New Lake of Texas! TAXING TEXANS by Richard Veda, Ph.D., provided by THE TEXAS PUBLIC POLICY FOUNDATION is an outstanding scholarly article that could serve as the blueprints for THE PAMAMA DIG that will be needed to allow the taxation flow to start to level out across Texas! In regard to school funding needs, TAXPAYERS FOR EQUAL APPRAISAL (T E A) SUPPORTS: a sharing of the load by some increase in the STATE SALES TAX Take all steps to fully implement GOVERNMENT CODE sec. 403.301 purpose; it is the policy of this state to ensure equity among taxpayers in the burden of school district taxes and among school districts in the payment of state financial aid to schools. The purpose of this subchapter is to promote that equity by providing for uniformity in the tax appraisal and assessment practices and procedures of school district tax offices, for improvement in the administration and operation of school district tax offices and for greater competence among persons appraising and assessing school districts’ taxes. Producing a valid and uniform BROADEN tax base so that all taxing units can lower their tax rates LARGE INFUSIONS OF FEDERAL FUNDS TO STATE AND LOCAL GOVERNMENTS DID NOT LEAD TO HIGHER GROWTH ( TAXING TEXANS ) Likewise , the large infusion of money into schools without each and every dollar being wisely spent directly for the students within the most current BETTER WAYS TO BUILD A BETTER MOUSE TRAP the money will not lead to Texans’ Education being all that it should be ! Thanks for your review and please share ideas with www.hcadtea.org Coach Dan Hart, 71 Hibury Dr. Houston TX. 77024   3.  What's the worst tax for Texas? (this means the entire United States, too!). Taxing Texans, and by inference, the entire USA. 4.  Mr. Craig Foster, special advisor on school finance equity, writes Carole Keeton Rylander, the Texas Comptroller, about public school finance. CRAIG FOSTER Public Member, Joint Select Committee On Public School Finance, 77th Legislature     3144 Honey Tree Lane * Austin, Texas 78746 Phone: 512.478.7313 (office) * 512.413.5983 (cell) * .512.328.8811 (home) Fax: 512.478.6433 * E-mail: craig@txfosters.net February 4, 2002   Honorable Carole Keeton Rylander Comptroller of Public Accounts Box 13528 Austin, Texas 78711-3528 Dear Ms. Rylander: Our property tax system is far better today than it was before the Peveto reforms of the late seventies, and we've seen some recent improvements, such as your efforts to eliminate sales-chasing. But the system still has some serious faults, and I am concerned that in some ways we are backsliding to the good old days. I remember, for example, when petrochemical plants were routinely appraised over three-martini lunches, and state aid to schools was heavily impacted by the competitive undervaluation of that and other types of property. Those martini appraisals were largely eliminated when the Comptroller's Property Tax Division and its predecessors included industrial property in the annual Property Value Study. But that ended in the early nineties, and I suspect the subsequent flattening of industrial values is not an innocent coincidence. Today, there could easily be $200 billion -probably more -in taxable value [for all categories of property combined] missing from school tax rolls, including, as you know, a substantial amount of business personal property .Each $100 billion found would increase the funding capacity of our schools by $1.8 billion per year .Many school districts that are, or soon will be, at the $1.50 M&O tax rate cap could have more revenue at lower rates. State funds that are currently needed to offset local funds lost to undervaluation could be used to close the huge funding gaps between rich and poor school districts in Texas - and between Texas and the national average. And, equally important, we would then be much closer to achieving the equal and uniform taxation which our Constitution promises. Today, a significant number of arguably innocent school districts are being punished for the sins of their appraisal districts, revealed by your recent efforts to eliminate sales- chasing -efforts which in all other respects are highly commendable. If your Property Tax Division had the resources needed to ensure compliance with standard appraisal practices on a continuing basis, your Property Value Study would rarely cause serious adverse impacts on school districts.   Comptroller Rylander February 4, 2002 page 2   I believe that in order to have any real chance of attaining a truly equitable and efficient property tax system we must give the County Appraisal Districts the tools they need to do the job the law requires. I feel strongly that we must also substantially enhance the resources of your Property Tax Division so that it can audit the performance of County Appraisal Districts and conduct the annual Property Value Study in a way that will achieve the following three goals:   to ensure that available state funds are spent to enhance the equity and adequacy of our school finance system, rather than to offset local funds lost to undervaluation to ensure that all taxpayers contribute their fair share to the state's public school system, allowing only for differences in local tax rates to prevent significant, sudden losses of state aid to school districts due to circumstances for which they are not directly responsible and over which they have limited control Senator Bivins and Representative Sadler, as co-chairs of the Select Committee, have advised members of the Committee that they are authorized to request studies and reports from state agencies on their own initiative. Accordingly, I hereby request that you conduct a thorough analysis of what needs to be done, and how much it will cost, to achieve these three goals. As part of this analysis, please evaluate the costs and benefits of the recommendations submitted to your Property Tax Division by consultant Alan Domfest in August of 1995, to the extent those recommendations have not already been implemented. Please report your findings either to me or to the Select Committee as a whole at your earliest convenience. If you could provide at least a progress report in time for our meeting on April 3, 2002, that would be greatly appreciated. If you have any questions or need clarification of this request, I will be happy to respond. Thank you. Sincerely, Craig Foster   5.  Mr. Art Cory, Chief Appraiser of Travis County, writes Mr. Craig Foster about 2 things:    a)  Requiring full sales disclosure on the sale of any property, and     b) Penalty for failure to render all business property. TRAVIS CENTRAL APPRAISAL DISTRICT   ART CORY CHIEF APPRAISER January 29,2002 Joint Select Committee on Public School Finance Attn: Mr. Craig Foster P.O. Box 12068 Capitol Station Austin, Tx 78711 Dear Mr. Foster: I have been the Chief Appraiser of the Travis County Appraisal District for thirteen years and have been involved with appraisal districts since their inception. I want to mention two issues which have a direct and significant impact on school funding. I realize that neither of these issues are new to the select committee or to the legislature, but as the school funding crisis escalates so does their importance. The appraisal process al1d the property value study performed by the Comptroller's office are absolutely dependent 011 sales information. In fact the property value study is also called a sales ratio study. I believe we are the only state that does not have an income tax and does not have full sales disclosure. In other words, our state is very dependent on property taxes, and the property value study, but the single most important tool needed in those processes is kept from us. Although I don't understand why, I do realize there has always been opposition to full sales disclosure, but I am in hopes that, due to current circumstances, you would take a fresh look at it. The other issue has to do with the law which requires businesses to render the date of acquisition and original cost of their-personal property such as machinery and equipment, furniture and fixtures, etc. Although required, there is no penalty for failure to render. In it's current form this law actually rewards those who do not comply and penalizes those who do. There is simply no way an appraisal district can know what personal property a business has in it's various locations, much less what it is worth, without information which is required on the rendition. If we can locate it, appraisal district's will almost always under appraise property which is not rendered. We need a penalty for failure to render. As with sales disclosure, I know that opposition has prevented any action in the past, but I would ask that this issue be given serious consideration. 1 would be glad to offer additional commentary on either of these issues. My phone number is 512 834-9317 ext. 300. Sincerely, ss/Art Cory Art Cory Chief Appraiser   6.  Mr. Dennis Deegear, Capitol Appraisal Group, a private company which does contract work for governmental districts (such as Harris County Appraisal District), writes Mr. Craig Foster about 3 things:    a) Required business rendering; and    b) Providing appraisal district with Audit Power; and    c) Mandatory disclosures by private citizens of all real estate sales prices. Capitol Appraisal Group, Inc. 9300 RESEARCH BLVD. SUITE 100 AUSTIN. TEXAS 78759-6510 PHONE (512) 346-5480 FAX (512) 346-5482 February 26, 2002   Mr. Craig Foster, Member Joint Select Committee on Public School Finance 3144 Honey Tree Lane Austin, Texas 78746 Dear Craig: Recently you asked me to express to you in writing my thoughts concerning additional "tools" that the appraisal districts in Texas need in order to enhance their ability to discover and appraise industrial property. There are three principal changes the Texas Legislature could make to the Property Tax Code that would accomplish this purpose:   Provide a mechanism whereby taxpayer compliance with the requirement to render would be ensured. Currently, section 22.01 of the code requires a taxpayer to render his or her business personal property but no penalty is provided. It seems to me that if the Legislature were to provide for some sort of penalty, either monetary or administrative, such as the loss of the right to appeal in district court, that taxpayer compliance would be greatly increased. To my knowledge, most states provide for penalties of this type for non-compliant taxpayers.   Provide appraisal districts with audit powers. Renditions or other information provided by taxpayers are not always credible. Many states allow taxing authorities to audit the books and records of taxpayers whom they suspect of not having provided fully accurate inforn1ation. Currently, section 41.61 of the code allows an appraisal review board to subpoena such records when there is a protest. The problem is that the taxpayers whose records need to be audited are usually those who have not protested because their value is low. Furthern1ore, it is my understanding that the review board has no power to enforce its subpoena except by appealing to district court. Such appeals are cumbersome at best and seem to defeat the whole idea of having an administrative hearing rather than a judicial one.     Provide for mandatory disclosure of real estate sales prices. To my knowledge, the vast majority of states require this. Many urban appraisal districts in Texas are able to get some sales data through the local Multiple Listing Service (MLS). However, most rural areas of the state do not have MLS. Furthermore, MLS typically deals only with residential properties. Thus industrial real estate transactions are not disclosed even where MLS is available.   OIL & GAS INDUSTRIAL UTILITIES REAL ESTATE DATA PROCESSING page 2   These are my recommendations for legislative changes that could, if enacted correctly, provide meaningful assistance to appraisal districts in their efforts to correctly appraise industrial properties. I hope these suggestions are of some help to you. Please feel free to contact me if I can be of further service. Sincerely, CAPITOL APPRAISAL GROUP, INC ss/ Dennis Deegear Dennis Deegear Vice-President, Complex Properties

What is the taxpayer's role? You can play an effective role in the process..... if you know your rights, understand the remedies available to you, and fulfill your responsibilities.

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