Carla Pope-Osborne Appeals Director Perdue, Brandon, Fielder, Collins & Mott LLP

Transcription

1 Carla Pope-Osborne Appeals Director Perdue, Brandon, Fielder, Collins & Mott LLP

2 The primary purpose of the PVS is to help ensure equitable distribution of state funding for public education. PTAD analyzes certain property categories, according to generally accepted sampling and statistical techniques, to estimate their legally required value, which is usually market value. Certain property, including industrial property, special inventory property, taxable non-business personal property, and most property categories with 5 % or less than a school district s tested categories value, is excluded from the PVS.

3 The 2016 Property Value Study will be released on January 31, 2017 The 2016 CPTD (T2) values are used in the 2017/2018 funding templates. The results of the PVS can affect a school district s state funding.

4 Texas Government Code in Sec requires State Comptroller to conduct annual study to estimate the total taxable value of all property within each ISD. The state s distribution of several billion dollars in school aid depends in part on the CPTD s findings.

5 Single Family Residential Multi Family Residential Vacant Lots Land (non-qualified and qualified) Minerals Utilities Commercial Property Personal Property

6 If the state were to rely solely on the values set by the appraisal districts, inequitable school funding could result in some school districts.

7 Independent estimate of value through the PVS by adjusting school district appraisal roll values to market value. If values are within an acceptable range of the adjusted values (state s estimate) then PTAD certifies local value to TEA.

8 ISDs and CADs receive copy of the study ( ) Commissioner of Education receives preliminary findings ISDs (not CADs) can protest within 40 days after the date of certification Protests are typically complete around the middle of July Final values are certified to TEA on August 1st

9 State Education Aid is based in part on the per pupil wealth of a school district. Commissioner of Education uses the CPTD estimate of taxable value to calculate the state funds each district receives. Taxable Value is the estimated property wealth of each ISD for state funding purposes. It equals the market value of all property in a district, minus certain exemptions and deductions.

10 State mandated homestead Disabled veterans Value limitations Reinvestment zones Freeport exemptions Productivity appraisal of qualified ag land Tax ceiling for over 65 homeowners Any other state mandated exemptions

11 20% Local Optional Homestead

12 2003 was last year that PVS was conducted for every ISD every year Even though a school district s local value is invalid (falls outside the confidence interval) the law requires the Comptroller to certify the local value. This grace period is given to ISD s for two years. Government Code requires the Comptroller to perform an appraisal standards review of the CAD s if an ISD is in grace

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14 CAD S blame the Comptroller of Public Accounts (PTAD) ISD s blame the CAD s

15 Whenever grace started for ISDs, the question of appealing or not appealing started. If there is no funding at stake, should the ISD appeal? Should the CAD appeal? These are local decisions that must be reached by the Chief Appraiser and Superintendent and/or Business Manager of the school. What happens if CAD and ISD are in conflict? Should I file the appeal myself (CAD) or should I consult (the so called) experts?

16 The CAD and ISD should actually already have an idea before the study is released that if they would have to appeal, what do they want to do Neither entity can wait to decide Appeals are due to the Comptroller s office 40 days after the release of the study ( unless an extension is granted) Rule Texas Administrative Code

17 Only an ISD has the right to appeal ISD s Control the entire process ISD can select their agent Remember there can only be one agent for each protest ********** SR appeal and full PVS appeal may have different agents

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19 July 25th, 2016 Sept/Oct 2016 Jan 31st, 2017 March 12, 2017 August 1st, Values Certified to ISD s CAD sends Values to PTAD PVS released Appeals Due to PTAD Values Certified to TEA

20 Differences occur due to: Freeze Loss Deferrals Local Optional Exemptions Timing of Submission of Tax Roll Chapter 313 s, etc

21 Spring ISD Value Submitted to PTAD from HCAD $ 8,332,879,764 Actual Value $ 7,928,354,707 (404,525,057) Reduction in Value Impact of School Funding $1,643,572

22 TAXABLE AUDITS Rule 9.103: Audits of School District Taxable Property Values Avenue to adjust the local values for school districts Filed after CPTAD s certification of data to TEA AUGUST of PVS year TEA will not fund until the Final SOF for that year has been released

23 PVS Errors not caught by school: Olney ISD (Chapter 313) 2013 audit Before: 562,969,933 After: 272,569,780 Adjustment: (290,400,153) Funding: $1,275,423

24 McAllen ISD Before : $5,853,960,161 After : $5,816,461,229 Adjustment: (37,498,932) Funding : $461,770

25 Involved a lawsuit with apartments that did not get settled until 2015 Lawsuits Huntsville ISD 2006, 2007, 2008, 2009, 2010, 2011 Total Adjustment: (129,682,766) Funding: $1,182,763

26 Tax Roll Changes ELGIN ISD 2013 PVS Before VALUE $879,871,960 Additional State Aid total state aid before = $25,140, total after = $25,301, gain = $161,126 After VALUE $871,185,360

27 15 ISD s State Value Lower Than Local *** 56 ISD s Year 1 of Grace *** 14 ISD s Year 2 of Grace*** 26 ISD s at State Value

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