MCLENNAN CAD

JOE DON BOBBITT, ACTING CHIEF

MCLENNAN CO TAX OFFICE

RANDY RIGGS, TAX COLLECTOR

MVBA

ROBERT MEYERS

MATTHEW TEPPER

Coronavirus impacts

Timeline

Estimating Value

Appraisal Totals

How you can help

Getting updated totals

Certification

Value added after Certification

TNT Website

Collections

TEA audits

Lawsuit reporting

HB3/SB2

property value assessment is as of January 1 each year.

Governor Abbott declared a statewide disaster on March 13

Texas Association of Appraisal Districts (TAAD) discussed possibilities with state including: freezing values from 2019 for the 2020 tax year property value study modifications the governor’s and the comptroller’s staffs concluded that would

require legislative action and could not be implemented by any one state official, state agency, or individual chief appraiser.

Attorney General opinion states natural disaster exemption does not include economic disasters

“I recognize, of course, the significance of the oil and gas industry to the Texas economy, and I’m very sympathetic to the downward pressures put on the industry in this global economic contraction. After considerable research by my staff, however, it’s clear that Texas law stipulates a uniform appraisal date of Jan. 1. While the existence of COVID-19 in China was known on Jan. 1, the eventual global spread of the virus and its economic impact was not. Changes to the economy occurring after Jan. 1 do not decrease or increase the appraised market value of property as of Jan. 1, unless those changes were part of a market trend predictable as of the appraisal date….”

-Glenn Hegar

“Section 11.35 of the Tax Code creates a temporary tax exemption for qualified property damaged by a disaster, as declared by the Governor. A court would likely conclude that the Legislature intended to limit the temporary tax exemption to apply to the property physically harmed as a result of a declared disaster. Thus, purely economic, non-physical damage to property caused by the COVID-19 disaster is not eligible for the temporary tax exemption provided by section 11.35 of the Tax Code.”

-Ken Paxton

2020 is a property value study year for MCAD

Average residential increase across county is 4%

We will be attempting to minimize increases but stay within 5% PVS requirements

ARB hearing start will be delayed, conducted by teleconference or videoconference

ARB timeline could impact amount of hearings left at July 25th

Option of Certified Estimate on July 25th

Potential for increased protests

BPP renditions due April 15th, automatic extension to May 15th

Residential Notices mailed April 1st May 5th

Preliminary totals sent prior to May 1st

Most Commercial Notices mailed May 1st May 5th

Past year Hearings begin May 13th May 20th?

Residential protest deadline May 15th June 4th

BPP Notices mailed May 17th May 24th

Remaining(?) Notices mailed May 31st

1st Commercial Notices protest deadline May 31st June 4th

“Remaining” Commercial notice deadline July 1st

ARB hearings end July 17th

Roll is certified by July 25th

August 7th Assessor shall submit rates to governing body

August 7th Appraisal District New Tax Website postcards will be mailed

Injunction deadline within 15 days of rate adoption

Before September 30th adopt tax rate

October 1st Tax Bills mailed and become due

February 1st Taxes are delinquent

Sorted by ratio

Median Value indicates change required in this neighborhood

10

Appraised Value

Sale Price Appraisal/sale Ratio

1 $ 52,200 $ 75,000 69.6%

2 $ 58,300 $ 65,000 89.7%

3 $ 61,350 $ 67,450 91.0%

4 $ 67,450 $ 69,000 97.8%

5 $ 80,000 $ 84,500 94.7%

6 $ 74,500 $ 78,000 95.5%

7 $ 63,000 $ 63,000 100.0%

8 $ 70,500 $ 68,250 103.3%

9 $ 64,400 $ 61,000 105.6%

10 $ 95,000 $ 72,000 131.9%

11 $ 55,250 $ 29,000 190.5%

The Property Tax Assistance Division (PTAD) of the Comptroller’s office is required to conduct a PVS for school districts every other year. The primary purpose of the PVS is to help ensure equitable distribution of state funding for public education. The secondary purpose of the PVS is to collect data to provide taxpayers, school districts, appraisal districts and the Legislature with useful information about property values.

11

2018 Property Value Study

CategoryNumber of Ratios 2018 CAD

Rept Appraised ValueMedian Level of

ApprCoefficient of

DispersionPrice-Related

Differential

Single-Family Residences 1,820 10,043,912,503 0.99 12.76 1.02Rural non-qualified 307 1,180,560,481 1.00 23.31 1.05Commercial Real 225 3,267,456,873 0.98 10.22 0.97Utilities 35 514,802,102 0.89 6.13 1.01Commercial Personal 180 1,873,599,080 1.01 14.71 1.04

Overall 2,662 20,686,345,464 0.99 14.01 1.04

2020 is a study year

Higher Statewide PVS failure rate last year

TREPP commercial data

Texas A&M Real Estate Center shows 5-8% increase

Checking State code totals

Checking exemptions

New Value still pending

Anticipating number of Protests ~ 15,000

Estimating Loss during ARB process ~15% of protested

Estimating Personal Property that’s due in 15 days

Estimating Freeport and other large exemption changes

You may be aware of things in your area that we may not.

Large swings in value

Exponential Growth

Entities coded wrong

Too often and big changes seem small

Never and no chance to update your estimates

Every 2-4 weeks is recommended

CAD only really compares the grand totals page

Under ARB review totals are too preliminary as most protests come in around May 15th.

Certified Totals are separated by ARB approved vs. Under Arb Review

An estimate of the value or properties under ARB review and not yet added to the appraisal roll are used in determining the “No New Tax Rate” and the “Voter Approved Tax Rate.

The Appraisal District submits each school district’s certified appraisal roll to the Comptroller who in turn certifies those values to the Texas Education Agency for determining a school district’s state aid. The additional value under ARB Review or value that is not yet added to the tax roll is not included.

Risk management Levy loss Attorneys fees Expert witnesses Jury Trial

Provide annual report of pending litigation with estimate of potential levy loss per entity

Sum of Estimated Refund or credit Column LabelsRow Labels 2014 2015 2016 2017 2018 2019 Grand TotalBELLMEAD, CITY OF -2,401 -14,560 -6,577 -23,537BEVERLY HILLS, CITY OF -3,767 -3,312 -7,078BOSQUEVILLE ISD -5,100 -5,100CRAWFORD ISD -548 -548HEWITT, CITY OF -7,466 -22,303 -29,770LA VEGA ISD -11,312 -63,427 -40,851 -115,590LACY-LAKEVIEW, CITY OF -4,554 -4,554McGREGOR ISD -169 -2,442 -2,611McGREGOR, CITY OF -1,151 -1,151McLENNAN COMMUNITY COLLEGE -136 -276 -2,628 -19,623 71,629 -2,442 46,525McLENNAN COUNTY -486 -985 -9,270 -65,950 -18,304 -224,860 -319,855MIDWAY ISD -286 -11,018 -100,187 -131,421 -242,913RIESEL ISD 1,181,377 1,295,663 2,477,040RIESEL, CITY OF 5,666 6,413 12,079WACO ISD -1,228 -2,003 -24,227 -160,978 -308,339 -897,386 -1,394,161WACO PUBLIC IMPRV DIST#1 1988 -611 -8,183 -9,939 -14,666 -33,399WACO, CITY OF -704 -1,111 -13,432 -88,622 -195,878 -571,482 -871,229WEST ISD -5,372 -5,372WEST, CITY OF -2,736 -2,736WOODWAY, CITY OF -102 -3,923 -11,361 -5,625 -21,012Grand Total -2,554 -4,922 -50,725 -372,011 520,345 -635,104 -544,970

Sum of Worst case Column LabelsRow Labels 2014 2015 2016 2017 2018 2019 Grand TotalBELLMEAD, CITY OF -3,201 -19,413 -8,769 -31,383BEVERLY HILLS, CITY OF -5,022 -4,416 -9,438BOSQUEVILLE ISD -6,799 -6,799CRAWFORD ISD -730 -730HEWITT, CITY OF -9,955 -29,738 -39,693LA VEGA ISD -15,083 -84,569 -54,468 -154,121LACY-LAKEVIEW, CITY OF -6,072 -6,072McGREGOR ISD -225 -3,256 -3,481McGREGOR, CITY OF -1,535 -1,535McLENNAN COMMUNITY COLLEGE -181 -367 -3,504 -26,164 -79,979 -199,112 -309,308McLENNAN COUNTY -648 -1,313 -12,361 -87,934 -262,793 -635,173 -1,000,221MIDWAY ISD -381 -14,691 -133,583 -216,448 -365,104RIESEL ISD 0 0 0RIESEL, CITY OF 0 0 0WACO ISD -1,637 -2,671 -32,302 -214,638 -526,136 -1,413,254 -2,190,637WACO PUBLIC IMPRV DIST#1 1988 -815 -10,910 -13,252 -19,555 -44,532WACO, CITY OF -939 -1,481 -17,910 -118,162 -324,756 -913,577 -1,376,826WEST ISD -7,162 -7,162WEST, CITY OF -3,648 -3,648WOODWAY, CITY OF -136 -5,231 -15,148 -7,501 -28,015Grand Total -3,405 -6,562 -67,633 -496,014 -1,481,406 -3,523,682 -5,578,704

August 7th TNT Postcard

https://mclennan.truthintaxation.com/

Each Taxing Entity and the Tax Office will have a login(s)

Update public hearing date and times

Upload different Rates and worksheets

Receive feedback from taxpayers in spreadsheet format

Responsibility: I’ll be available to help with logging in or technical issues Tax Office may upload worksheets Entities will be responsible for entering contact and hearing info

https://mclennan.truthintaxation.com/

Property Notices mailed after Certification

New Value added to roll not considered during tax rate calculations

Value losses during litigation may not help to appeal since net value is still higher than at certification

Remedies Commercial positions have doubled since 2016 Part-time MAI appraiser to focus on litigation Industrial properties transferred to appraisal firm Mobile Devices for more efficient field process TREPP data source

A school district may request that the Comptroller audit its property values.

Audits will reflect increases and decreases to a school district’s tax roll resulting form:

Late Homestead Exemptions Appraisal District Corrections Appraisal District Litigation

The Comptroller will certify any changes to a school district’s tax roll to the Texas Education Agency to adjust its state funding.

A school district may request an audit for the three previous tax years.

WAIT…A QUICK LOOK AT SOME CHANGES:Old Things OUT New Things IN

Effective Tax Rate No-New-Revenue Tax Rate

Rollback Tax Rate Voter-Approval Tax Rate

Two Public Hearings One Public Hearing

Hearing Notice 7 days Hearing Notice 5 days

No Rate Adopted at Hearings Can Adopt at Hearing

8% increase 3.5% increase

Anticipated Collection Rate Actual Collection Rate

THINGS THAT ARE BRAND NEW

Use Comptroller Prescribed Worksheets

Certification of Worksheets

Submission to County Tax Assessor-Collector

Post on HOMEPAGE Information from Worksheets

Appraisal District Notice of Estimated Taxes

Appendix to Budget

CFO or Auditor’s Certification Concerning Debt

MORE BRAND NEW THINGS

Small Taxing Unit’s Internet Posting

De minimis tax rate

Unused Increment rate

Special Taxing Unit

County Indigent Defense Compensation Expenditures

Eligible County Hospital Expenditures

TAX RATE CALENDARADDITIONAL TIMEFRAMES

Going UP? - Proposed rate exceeds the no-new-revenue rate:Schedule a public hearing not to be held before the fifth

day after notice is given – the date must be included in the published notice and on your websiteProposed rate exceeds the voter-approval rate:

Schedule a public hearing not to be held before the fifth day after notice is given – the date must be included in the published notice and on your website.

Required to hold an election so that the voters may accept or reject the proposed rate.

Rate must be approved 71 days before the Uniform Election Date (August 24 for 2020) per PTC

Rate must be approved 78 days before the Uniform Election Date (August 17 for 2020) per Election Code

TAX RATE CALENDARWHAT IF?

The proposed rate is the calculated no-new-revenue rate or lower - Propose a rate and publish the required notice in the paper and on

your website No hearing

Schedule the meeting to adopt the tax rate

Have 7 days to adopt the tax rate

APPRAISAL DISTRICT NOTICE

Texas Property Tax Code Section 26.04(e-2)

By August 7…, the chief appraiser…shall deliver…to each property owner…a notice that the estimated taxes to be imposed…may be found in the property tax database maintained by the appraisal district…

Why do we care…

APPRAISAL DISTRICT NOTICE

Texas Property Tax Code Section 26.05(d-1)

Governing Body must wait 5 days after CAD notice before either a public hearing or meeting to adopt

PROCEDURESTHE PUBLIC NOTICE IN THE PAPER

Use the simplified notice Local Government Code 140.010 If someone else prepares it, CHECK IT for correctness

Keep a copy handy for the public hearing

Keep your proof copy from the paper

PROCEDURESHEARINGS & MEETINGS

Public hearing on the tax rate What am I supposed to do or say at the hearing? What if no one shows up?

Meeting to adopt tax rate Must take a separate vote from the vote on the budget Adopt the M&O rate and the I&S rate individually Must be a record vote, and at least 60% of the Court must be in

favor to pass

PROCEDURESHEARINGS & MEETINGS

If you are exceeding the no-new-revenue tax rate, use the language required by statute for the motion:

"I move that the property tax rate be increased by the adoption of a tax rate of (specify tax rate), which is effectively a (insert percentage by which the proposed tax rate exceeds the no-new-revenue tax rate) percent increase in the tax rate.“

REMEMBER TO ADOPT THE M&O AND I&S RATES SEPARATELY! Statement required in the order or resolution adopting the rate "THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND

OPERATIONS THAN LAST YEAR'S TAX RATE. THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $(Insert amount)."

PROCEDURESINTERNET POSTING

Post public meeting and hearing notices

If you adopted a rate that is higher than the no-new-revenue tax rate, must place this on your internet homepage: "(Insert name of unit) ADOPTED A TAX RATE THAT WILL RAISE

MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE. THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $(Insert amount)."

SMALL TAXING UNIT

Defined as 50 cents or less current tax rate; AND

would impose taxes of $500,000 or less

Exempt from certain notice and publication requirements

Notice by mail or publishing 7 days before meeting

If notice published in newspaper, MUST also post on Homepage and on Taxing Unit’s website

DEMINIMIS RATE

The rate equal to: NNR M&O rate Rate that would impose $500,000 of taxes Current debt rate

If DMR exceeds the VAR and the adopted rate is equal to or lower than the DMR then the voters can petition.

UNUSED INCREMENT RATE

Used to calculate the VAR

Difference between VAR and the Actual Tax Rate

Look back 3 years

For 2020, Unused Increment Rate = Zero

Expires December 31, 2022

SESSION REVIEWWE HAVE PROBLEMS

What happens if we don’t do all of this?

What if we are late and miss one of the deadlines?

Someone else does all of this, and they just tell me when to be at the meeting…

SESSION REVIEWSTATUTES & REFERENCES

Tax Code, Chapter 26

Local Government Code, Chapter 140

Texas State Comptroller – Property Tax Assistance Division https://comptroller.texas.gov/taxes/property-tax/ Truth in Taxation Calculation worksheets Your rates are on there

Texas Association of Counties – www.county.org Sample planning calendars and handbooks

https://comptroller.texas.gov/taxes/property-tax/http://www.county.org/

Taxing Units other than School Districts: Effective Tax Rate is now “No New Revenue Tax Rate”, Rollback Tax

Rate is now “Voter Approval Tax Rate” For most taxing units, other than special districts, the Voter Approval

Rate is the M&O rate multiplied by 3.5%, plus the debt service rate. Taxing units, other than municipalities with populations in excess of

30,000, may adopt a de minimus rate that allows the taxing unit to adopt a rate that would provide an additional $500,000.

A taxing unit intending to adopt a tax rate above the NNR must publish a notice and hold a public hearing.

Taxing units that exceed the VAR must hold an election for the voters to accept or reject the rate above the VAR.

Voter approval elections must be held on the uniform election date in November of the tax year.

Must post Tax Rate and Budget Information on its Website

School Districts TEA will calculate each school district’s compressed M&O tax rate

“MCR” each year by August 5. Each school district will have to report to TEA from July 18 to August

1, certified taxable values and exemption amounts for the current and preceding year.

TEA will use current year values to determine a school district’s state aid each year.

A school district intending to adopt a rate above its Voter Approval Rate must: Commission an audit at least 4 months before the rate adoption Hold an election on the uniform election date in November of the tax

year.

Must publish its Tax Rate and Budget information on its website.

Does S.B. 2 make any adjustments to the voter-approval tax rate calculation in a city located in a disaster area?

Yes. Under a statute added by S.B. 2, a city council may direct its designated officer or employee to calculate the voter-approval tax rate in the manner provided for a special taxing unit (an 8 percent rate, instead of a 3.5 percent rate) if any part of the city is located in an area declared a disaster area during the current tax year by the governor or by the president of the United States. Tex. Tax Code § 26.04(c-1).

If a city uses the 8 percent voter-approval rate calculation, when must it adopt its tax rate?

Following the passage of S.B. 2, a city adopting a tax rate exceeding the voter-approval tax rate is required to adopt that tax rate by no later than the 71st day before the November uniform election date.Tex. Tax Code § 26.05(a). In 2020, this date is August 24th. Election code states 78th day, effectively August 17th.

This statute applies the same to a city that has elected to direct the designated officer or employee to calculate an 8 percent tax rate. Therefore, if a city uses the disaster exemption for calculating the 8 percent voter-approval rate, it must only adopt its tax rate by the August 24th (or August 17th)deadline if the city is adopting a rate exceeding the 8 percent voter-approval tax rate. Any rate equal to or less than the 8 percent voter-approval rate may be adopted before the later of September 30th or the 60th day after the certified appraisal roll is received by the city. Id.

I need to provide

Preliminary totals next week

Lawsuit detail spreadsheet

TNT user creation

What I need

Contact info for TNT website

Tax Roll SeminarThank you for ParticipatingAgenda�CoronavirusJanuary 1 assessment date�QUALIFIED PROPERTY DAMAGED BY A DISASTERImpactTimeline (for now)Timeline ContinuedMarket adjustmentsProperty Value StudyPVS ContinuedPreliminary Estimates of ValueHow To Help Catch ErrorsGetting updated totalsCertified TotalslawsuitsEst. Refund 15% avg reduction“Worst case” 20% reduction or their opinionTNT WebsiteDemoNotice Runs and affects on TEA auditsTEA AuditsWait…A quick look at some changes:Things That Are Brand NewMore Brand New ThingsTax Rate Calendar�Additional TimeframesTax Rate Calendar� What if?Appraisal District NoticeAppraisal District NoticeProcedures�The Public Notice in the PaperProcedures�Hearings & MeetingsProcedures�Hearings & MeetingsProcedures�Internet postingSmall Taxing UnitDeMinimis RateUnused Increment RateSession Review�We have ProblemsSession Review�Statutes & ReferencessB2/hb3 changesSB2/hb3 changesTML inputTML continuedTo do listQuestions