Posted 2:30 am Thursday, February 05, 2009
Comptroller's Study Finds Tax Rates Unacceptable
By KELLY GOOCH
Staff Writer
Preliminary findings from a study done by Texas Comptroller Susan Combs' office found sampled properties in Jacksonville and Alto school districts are outside the acceptable range for school funding purposes, said R.J. DeSilva, spokesman for the comptroller's office.
Staff Writer
Preliminary findings from a study done by Texas Comptroller Susan Combs' office found sampled properties in Jacksonville and Alto school districts are outside the acceptable range for school funding purposes, said R.J. DeSilva, spokesman for the comptroller's office.
He said preliminary findings of the Property Value Study for 2008 released Friday show both school districts are outside the 5 percent margin of error allowed when comparing state value for various property categories with local value from the Cherokee County Appraisal District.
If a school district is outside the margin of error, DeSilva said the state value is sent to the Texas Education Agency rather than the local value.
Higher taxable property generally could mean less funding from the state, he said.
DeSilva said after the study is finalized in July, any school districts the study shows are outside the margin of error will have a two-year grace period where the local value would still be sent to TEA.
However, he said if the school district is outside of the margin of error for a third straight year, then the state value would be sent.
According to Cherokee County Chief Appraiser Lee Flowers, the Bullard, Rusk, Troup and New Summerfield school districts were just above the lower-limit threshold found by the state.
Flowers said he does not agree with the preliminary findings.
"I feel that it's an inaccurate report and should not be allowed to stand. (The) study is not a tool that's designed to be used to adjust local values," he said.
The preliminary findings of the study were done by the Comptroller's Property Tax Assistance Division, Flowers said, and a field appraiser was sent out into Cherokee County to gather information.
DeSilva said the office looks at different property categories and uses sale prices and appraisal figures, among other things, when coming up with the preliminary findings.
With Jacksonville, Flowers said the state did appraisals on commercial property and commercial personal property and worked on preliminary findings in Cherokee County off and on from May 2008 to October or November 2008.
"The state appraiser never has to face local taxpayers, the local appraisal review board or even district court in Cherokee County.
In short, they do not have to really defend their values on a property-by-property basis with comparable sales," he said in a news release.
Flowers said the problem with the preliminary findings is the "lack of discretion" in using sale information.
With two particular sales included in the preliminary findings, he said his opinion is that they "are not indicative of market value."
One tract is in Jacksonville ISD of more than 50 acres that sold for $7,500 an acre, Flowers said, and one tract is in Alto ISD of more than 120 acres was sold for $2,800 an acre.
DeSilva said there is a 40-day period from the time the preliminary findings are released where an appeal of the findings in allowed.
Flowers plans to go to Austin and appeal the preliminary findings within that time period.
He expects to spend approximately $3,000 to go through an informal period, he said, when there is typically a meeting scheduled with staff from the comptroller's office.
Flowers said if staff members agree with the appeal, results will be changed for those two districts in the final Property Value Study for 2008.
If staff members do not agree with the appeal, the case could go to a formal hearing with the State Office of Administrative Hearings, he added.
If, in the end, the final study shows the school districts are outside of the margin of error, Flowers said the comptroller's office will conduct an Appraisal Standards Review of the Cherokee County Appraisal District.
"The ASR results in state recommendations for the appraisal district to implement. Failure of the district to implement those recommendations can result in the local district judge appointing a five member board of conservators to take control of the appraisal district and enact those recommendations," he said in a news release.
Flowers said Cherokee County also had problems involving the Property Value Study in 1999 when the state had a problem with the way the Cherokee County Appraisal District valued timber, which was eventually fixed to reflect the state's requirements.
With his upcoming appeal this year, he said the basis of the appeal will be that the two sales included in the preliminary findings kept Jackson-ville ISD and Alto ISD outside the margin of error.
"If I thought that this study was accurate, I wouldn't waste any time or money to appeal it," Flowers said.
