What I want is the State to revoke ad valorum property taxes as the way to fund public schools. While this proposition may allow legislative enforcement, it does nothing to remove taxing power from school districts, or to control that taxing power in any way. The State could turn around and allow public school systems to rip us off even more, depending upon whether or not the legislators were real conservatives, or not. This is another 'damned if you do, and damned if you don't' constitutional amendment.

I am a licensed Property Tax Consultant that has represented property owners in Harris, Jefferson, Brazora, Waller, and Montgomery counties. In 2008 I represented 3,000 residential property owners and in 2009 I have represented over 1,000 commercial property owners. I am on the frontlines of this battle against taxpayer rights everyday. I can say without a doubt that the average property owner would be disqusted and enlightened by the implementation of the Texas Property Tax Code. In most instances, important aspects of the Code are deliberately ignored. I can say with the utmost conviction that the system is broken and voters must respond by protecting their rights.

Prop. 2 - I've read many opinions on this amendment. But, no where have I seen discussion of the "hidden" effect currently used by appraisal districts. Few people understand that ALL property value is considered using two approaches: market value and unequal appraisal value. Most everyone understands market value which deals with comparable sales. Few people, however, understand unequal appraisal otherwise known as equity value. U/E was created to make sure people were not being discrimated against because of race. U/E is used to protect minorities from being unfairly taxed at a higher value. For example, if I have tract of vacant land assessed at $2 per square foot and a nearby tract of similar size and use is assessed at $1 then I should be assessed at the lower value (both properties are comparable and have no improvements or other significant differential in overall characteristics).

The problem is that CURRENTLY appraisal districts will raise a homestead near a commercial area based on sales and highest/best use. Then, the following year other homesteads in the area (not near commercial influences) will be raised to that value based upon U/E or equity. I call this the "Leap Frog Effect". I've seen it on about 40% of 1,000 cases I had this year in Harris county. This is real and it happens because it is planned and deliberately implemented by aggressive county appraisal districts (CAD).

"This is because appraisers are valuing homes in places like this based partly on the idea that one day, the land will be worth something to commercial developers." I hear this rational from CADs all the time. Well, what happens if the property never sells? Do the property owners get a refund? If a downtown property is assessed at $1 MM for several years and then sells for $600,000 shouldn't they get a refund for all the years of overavaluation? Values based upon speculation or "what could happen" are unfair. We don't charge DWI offenders with Manslaughter because they most likely would have killed someone. It's speculation and Texans shouldn't pay taxes on speculation. Texans should pay tax on accepted known appraisal standards and facts.

This proposition would help slow that process but would not eliminate it entirely due to biased ARB (Appraisal Review Board) members. These people usually tend to go with CAD values because they have little or no real estate experience and they want to keep a job that pays $25/hr. Most ARB members are retireees and/or handicapped and will not upset the applecart by deciding in an fair or impartial manner. Voting yes to Prop. 2,3 & 5 would give property owners more leverage in legal suits against runaway CAD/ARB.

Prop. 3 - Appraisals standards are NOT EVEN CLOSE to uniform standards across the state. Smaller counties don't even show the comparables used to assess a market value and routinely use uncomparable properties to raise values. Basically, they start with the overall figure they need for the year for the entire county, raise properties to get to that value, and then force the owners to prove a lower value. The burden of proof has shifted from the CAD (under the Code) to the property owner. Waller and Jefferson counties are the worst I've seen. It's unreal to see the first time you experience it. Please vote yes to Prop. 2,3 & 5.

*With Prop 2 we loose much of the tax savings of our homestead exemptions and with Prop 3 our ability to challenge the taxable value of our homes is greatly reduced. I'll explain:

*Some basic information:

*Something I learned a while back is that it does not matter what anyone SAYS about a proposed amendment or what is WRITTEN anywhere about a proposed amendment . . . all that matters is what is printed on the ballot because that is what you are actually voting for or against. That means that so-and-so might tell you their intent or interpretation of the proposed amendment but once the amendment is passed they are not bound by their rhetoric. The only thing they have to do is follow the LETTER OF THE LAW (and leave it up to the judiciary to tell them if they are right or wrong. And be sure that they won't leave themselves open to that very often.)

*BusinessDictionary.com defines "ad valorem" as: A METHOD for charging a duty, fee, or tax according to the value of goods and services. In essence you could take out the words "ad valorem" and the sentence would mean the same thing. It's just a fancy, legalistic way to confuse the public into thinking this is some kind of special tax. It's just another tax folks. The "ad valorem" part (the method) is "The constitutional amendment". It's a legal redundancy. Prop 2's sentence could just as easily read:

"The constitutional amendment authorizing the legislature to provide for the . . . taxation of a residence homestead solely on the basis of the property’s value as a residence homestead."

and it would mean the same thing.

*Now for Prop 2: Homestead exemption allows for a reduction in the assessed value allowed for one's principal residence among other things. Prop 2's additional tax negates this benifit for everyone - rich and poor alike.

*This really, truely all comes down to the Homestead Exemption law here in Texas. Some current law makers and many businesses have been trying to get rid of this exemption for as long as I can remember. They cannot get rid of it out-right so they try to find ways around it like this proposed new tax. Only Texas, Florida, Iowa, Kansas, and South Dakota have adopted homestead exemption laws. And Texas homestead exemption laws are the strongest.

*As for Prop 3: The arguement FOR is that some small number of houses are valued by speculation of future development. Or another states: "Appraisals standards are NOT EVEN CLOSE to uniform standards across the state." which tells me that this particular problem might be localized and that their might already be some "uniform standards" in place somewhere in the state.

*My arguement AGAINST is that all homes would indeed get a standardized evaluation and that would then be used for tax purposes. That would mean that a home on the other side of town in a more desirable or not as desirable a neighborhood would help to set the taxable value for your home. This would make a challenge to the taxable value of a property very difficult for anyone. A neighborhood that is losing homeowners right and left and homes sitting vacant for whatever reason would, should, and does, lower the sales value of everyone's home in that neighborhood. It's called supply and demand. But with Prop 3, the TAXABLE value could and most likely would be kept artifically high to satisfy the state's budget needs. Prop 3 would not take into consideration any other information: "regardless of whether the property may have a higher value if it were used for other purposes" such as for sale/purchase. And here they do not include but imply "lower value" as well. But notice, as I stated in my first informational paragraph, that neither higher or lower is mentioned in the actual amendment. That clenches the higher OR lower part of the arguement. So even if the home is purchased at a low or very low price, for whatever reason, that would not come into consideration for tax purposes.

*While a high valuation might seem good to someone trying to sell their house it is artificial and unsustainable.

*Also, don't believe for a moment that your county won't get on the band wagon and start accepting the new tax valuation method to assess your home's value for their own tax purposes with no consideration to market value. Again, your ability to challenge will be greatly reduced.

*While there is much left to be desired as to how a home's taxable value is determined, Prop 3's homoginization is not the best method.

*I'll not say much about Prop 5 other than it just sets up the board that would determine home values. That means that if you vote FOR or AGAINST 2 and 3 then the smart money would vote the same way for 5.

*In conclusion I repeat: with Prop 2 we loose much of the tax savings of our homestead exemptions and with Prop 3 our ability to challenge the taxable value of our homes is greatly reduced.

*P.S. And why do we need more amendments anyway? The US Constitution has 27. The Texas Constitution has the fourth highest number of amendments behind Alabama, California, and South Carolina with 456 amendments. Be cautious adding amendments willy-nilly to what should be a revered document. It would be easy to turn it into a too-specific document that is not open to judicial review. That would tilt the "balance of powers" which was not the intent of our founding fathers either of the USA or of Texas.