Prop 2 & 3 - direct taxation of homestead? (Dallas, Austin: per square foot, property tax)

[little elmer]

Explanatory Statements for the November 3rd, 2009 Constitutional Amendment Election (http://www.sos.state.tx.us/elections/voter/2009novballotexp.shtml - broken link)

I'm not sure what this means in english, but it appears that they want to amend the state constitution and tax us on our homesteads directly from Austin.

[orbius]

Prop 2 sounds to me like its creating a loophole so people can sit on valuable business property and pay only residential property tax if they claim it as their homestead.
Prop 3 is trying to deal with huge variances in property tax between businesses. Aka glad handing for businesses.

[little elmer]

So this is not a change to our residential property taxes?

[orbius]

Nope.

[little elmer]

I'm voting against it anyway.

[High_Plains_Retired]

The Texas Constitution requires that residential and commercial property be taxed equally although this is not to say that some counties still appraise commercial property above its market value to get more taxes out of it. I speak from experience having residential and commercial property at Muleshoe in Bailey County, Texas.

[orbius]

Its the opposite in Austin. Commercial is taxed much lower than residential in most cases. Also some people get amazingly low property taxes on their business, obviously they know someone, and some pay over the odds.
If we do believe in fair competition there needs to be a uniform code.

[High_Plains_Retired]

Proposition #2 sounds like it would limit an appraisal district from appraising your home at a higher rate than the regular homestead rate if they thought if was worth more because you were using it say in a commercial venture, e.g., selling trailers, RVs or such.

I would definitely vote yes on that one if it restricts an appraisal district's interpretation of a homestead.

[High_Plains_Retired]

My recent experiences with Texas property taxes, having rreturned to the State after 41 years, is that it is 254 separate states.

[lakehighlands]

Originally Posted by High_Plains_Retired

Proposition #2 sounds like it would limit an appraisal district from appraising your home at a higher rate than the regular homestead rate if they thought if was worth more because you were using it say in a commercial venture, e.g., selling trailers, RVs or such.

I would definitely vote yes on that one if it restricts an appraisal district's interpretation of a homestead.

I posted this in the Dallas forum and will post it here as well;

Proposition 2-
The value of any property anywhere in the state of Texas should be based on its Highest and Best Use. Highest and Best Use is the most probable use of the land or improved property that is physically possible, legally possible, financially feasible, and the use that provides maximum profitability. Limiting the amount a residential homestead can be valued at effectively eliminates the appraisal district's responsibility to put an "accurate" value on the property for ad valorem tax purposes.

An example: A residential property sits on a very busy, commercialized street. Surrounding commercial properties have sold in excess of $15 per square foot. If the residential property were to be placed on the market, it would sell for land value of $15 per square foot, but because of Proposition 2, it has to be valued as a residential homestead. Why should the owner of this residential property be assessed at a lower property value than any of the other properties?

Proposition 3-

The legislature has no business enforcing appraisal standards, that should be left to the counties. We do not pay "state taxes" on our properties, so why should the state legislature be involved in the decision making processes for ad valorem tax purposes. Additionally, most of the larger appraisal districts have no issue abiding by and following USPAP standards.