Recently approved changes to the Tarrant Appraisal District’s reappraisal plan could cost taxpayers more in the long run, according to an Austin-based taxation research group.
The changes could “create additional, wasteful expense” for cities, school districts and the county government if they lead to a large number of property value arbitration cases, according to the Texas Taxpayers and Research Association’s August report.
And Texas Sen. Paul Bettencourt, considered the architect behind the state’s tax code, said they will likely spur litigation from school districts concerned about funding.
The TAD Board of Directors approved sweeping changes to the county’s property reappraisal plan in July. They include reappraising every two years, a hold on reappraisals in 2025 and a 5% threshold on market value increases, which compels appraisers to provide “clear and convincing evidence” for valuations higher than that.
“The actions of the TAD BOD raise concerns about equal and uniform taxation , the scope of a BOD’s legal authority, and the integrity of the property tax system if other BODs follow TAD’s example,” said the association.
The report points out that the July 22 TAD board meeting was the first to include participation by the three newly elected board members, Callie Rigney, Matt Bryant and Eric Morris. All three campaigned on promises to be taxpayer advocates, cap residential increases at 5% and move appraisals to every three years.
“Because the three new, elected positions on the appraisal district BOD re-introduce a political element to the appraisal process, understanding the BOD’s statutory authority and responsibility is more important than ever,” the report states.
The Star-Telegram reached out to all nine members of the TAD board, but did not receive a response.
After publication, Chief Appraiser Joe Don Bobbitt responded by saying he does not think the TAD board violated any laws.
“Other districts have adopted 2-3 year reappraisal plans prior to us; however, we are the largest district to have done so, and the added publicity with the election has attracted more attention,” he said in an email. “The board did consult with their attorney before taking action, and if I thought the action was clearly illegal I would be prohibited from carrying it out.”
The report outlines the four duties of an appraisal district’s board of directors, which are: selecting a chief appraiser; approving the district’s budget; selecting members of the appraisal review board; and approving a biennial reappraisal plan.
The report then details the limitations on a board of directors’ authority, arguing that they are bound by a duty to ensure uniform and equal taxation.
If a property owner feels their property has not been uniformly and equally taxed, they have the right to arbitrate the value through the appraisal review board, leading to added expenses that are ultimately shouldered by taxpayers.
“In theory, if the prospect of violating the Constitution is not a deterrent, then the specter of additional expense should dissuade a BOD from adopting a reappraisal plan that will result in non-equal-and-uniform valuations,” the report states. “Such a plan would create additional, wasteful expense for the taxing units the BOD members represent.”
The report also addresses a point of disagreement among decision makers and critics of the changes. Critics have accused the TAD board of “ trying to push the boundaries of what’s allowed ” by law.
The tax code states districts must appraise property at market value as of Jan. 1, but the statute does not specify that this must be done each year.
But that “each” is implied, according to TTARA researchers, because property taxes are imposed each year.
“If property is not appraised at market value on Jan. 1 of a given year, property will not be taxed in proportion to value in that year, which would violate” the Texas Constitution, the report states.
Issues with school funding
School districts’ property value studies represent another indirect limitation on appraisal district boards of directors, the report states.
Performed by the Texas Comptroller, these studies estimate a school district’s taxable property values. If the comptroller’s numbers differ from the appraisal district’s by more than 10%, a district automatically loses funding. If those numbers are off by 5% to 10%, the district enters a two-year grace period to get its values back in alignment with the comptroller’s.
Several Tarrant County school districts have expressed their concerns about how the changes will affect their ability to pass their property value studies, arguing that they could lose funding and see budget cuts as a result.
In August, nine school districts — including Fort Worth — published an open letter calling the reappraisal plan changes a deliberate attempt to defund schools in Tarrant County .
These effects on schools are likely to result in lawsuits, according to Texas Sen. Paul Bettencourt.
The Republican from Houston, who sponsored bills in the 2023 legislative session that created $18 billion in tax relief, said he is “very concerned” by the TAD board’s actions.
“The likelihood of litigation is extremely high, especially from the school districts that are going to be harmed by these decisions,” he said.
Bettencourt also accused the TAD board members of changing the tax code, but board members have argued that they acted within the law.
In August, the Arlington school board joined seven others in Tarrant County in passing a pair resolutions in response to the changes at TAD. One was to reject TAD’s proposed budget for the upcoming fiscal year, which called for a 15% increase. The other was a ceremonial disapproval of TAD’s new reappraisal plan.
School board trustees in Mansfield on Tuesday argued over how harshly they wanted to censure the TAD board of directors in a resolution “regarding the vital role of educators and staff in Texas.”
The resolution that passed included a recommendation that the board encourage TAD to “conduct a timely appraisal study to ensure that Tarrant County ISDs do not lose state funding” in the event that the district fails to pass a property value study.
Trustees Jandel Crutchfield and Benita Reed argued for more and stronger language against TAD, but school board President Keziah Valdes Farrar and Vice President Courtney Lackey Wilson argued that the resolution’s focus should center on urging state lawmakers to distribute billions of dollars in funds allocated for public schools.
Over $4 billion of Texas’ record $33 billion budget surplus was allocated to public education during the 2023 legislative session, but that money has yet to be distributed .
“Absolutely, the state needs to fully fund this, but nobody else needs to hurt us,” said Crutchfield, adding that while she did not oppose the resolution, she did think that it did not fully “outline the harm” the reappraisal plan may have on the district’s funding.
Other controversies from TAD reappraisal changes
In addition to the possible outcomes of the changes to TAD’s reappraisal plan, the procedures that led to them have also come under scrutiny.
Communications the Star-Telegram received through an open records request in August revealed that Tarrant County Judge Tim O’Hare had “scripted” the agenda items that resulted in the changes being approved at the July 22 TAD board meeting.
Tax attorneys said that the action constituted a violation of the tax code, one that involves a misdemeanor crime.
O’Hare did not respond to a request for comment for that report, but denied having written them 11 days later.
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