Value protection

As expected, turnout so far has been light in early voting for the 11 proposed amendments to the Texas Constitution. That is unfortunate, because more than half of the proposals would directly affect homeowners’ property tax bill.

Live voting is Nov. 3.

Some proposed amendments would enable state and local governments to impose new taxes to fund various projects. Three deal with setting the property values upon which those taxes would be levied.

Proposition 2 stipulates that as long as a property is being used as a homestead, it is to be taxed as such. We support the measure.

Many tax appraisal districts have taken to setting appraisal values on property based on its "highest and best use," which in many cases means it is taxed as commercial property. Usually the higher tax rate is imposed when commercial development in a former residential area or buffer zone raises the overall property values in the area. In response, city and county officials presume that the property could bring in more tax revenue if a business, rather than a homestead, were sitting on it. Homeowners then are forced to pay for the higher presumed value of its potential use, rather than its actual use as a residential parcel.

In many cases, homeowners have felt compelled to move and sell their property, directly because of the higher taxes. Usually, the property owners had no desire to leave the property before the sudden and drastic change in their tax bill. Selling out, of course, opens the door for commercial enterprises to buy the land and redevelop it, which was the intent of the officials imposing the higher tax in the first place.

It’s an abuse of the residents who, some officials forget, are the foundation of any community and the reason the businesses set up shop there in the first place.

Currently the state has no mechanism for preventing such abuses, and Proposition 2 would create that safeguard.

Similarly, Proposition 3 would give the state the authority to standardize and enforce the standards it sets on property valuation and taxation. Essentially it’s the teeth that would give Proposition 2 its strength.

While the state does set guidelines for property tax appraisals, it does not have an enforcement mechanism. So local taxing officials can set their rates with impunity.

Local governance usually is preferred, but after the state imposed caps on the amount property taxes could be raised at a time, many counties responded by raising property values artificially to make up the difference. If Proposition 3 passes, the state could fine counties that take such unreasonable actions against their property owners.

Proposition 5 isn’t likely to affect the Rio Grande Valley, but it also would give property owners a better chance at fair and objective tax valuations and treatment.

This amendment would enable two or more taxing entities to combine, with a single board to set appraisals and address disputes.

Some rural districts in the state are so sparsely populated that the pool of people to fill such boards might be limited. Combining districts would enable officials to enlarge that pool, and also consolidate their operations in order to improve efficiency.

The provision is not a mandate; it merely enables districts to join forces, if they so desire.

Property owners face tax levies from various bodies, including city, county, school and community college. These amendments would help protect the owners from unexpected and unreasonable increases, and help ensure that those setting property values and hearing appeals were chosen for their abilities, not because they were the only people available.