November 9, 2020 the Honorable Dustin Burrows, Chairman House

Galveston County Courthouse 722 Moody, Galveston, Texas 77550 (409) 765-3277 Mobile (409) 392-5457 [email protected]

November 9, 2020

The Honorable Dustin Burrows, Chairman House Committee on Ways and Means Post Office Box 2910 Austin, Texas 78768 c/o [email protected] and [email protected]

Dear Mr. Chairman:

The legislation that passed through House Ways and Means during the 86th Legislative Session and become law was significant and deeply appreciated by me and the overtaxed property owners that I represent in Galveston County and I have come to know across Texas. The input I provide herein is in no way intended to criticize or minimize your efforts but provided with the intention of fine tuning that which you have already placed into law.

Therefore, I hereby present input on Interim Charge 1.1 as presented in the request for submissions dated July 29, 2020, specifically as it relates to “legislative outcome of all legislation, including SB 2.”

Interim Charge 1.1 Monitor the agencies and programs under the Committee’s jurisdiction and oversee the implementation of relevant legislation passed by the 86th Legislature. Conduct active oversight of all associated rulemaking and other governmental actions taken to ensure intended legislative outcome of all legislation, including the following: SB 2, which is the Texas Property Tax Reform and Transparency Act of 2019. Monitor the implementation of the legislation, including a review of the tax rates adopted by taxing units in 2019 and 2020, the appraisal review board survey system, and progress in onboarding the tax rate notices and websites. Make recommendations for modifications as necessary and appropriate.

Section I. Intended legislative outcomes of all legislation except SB 2

SB 1943 Section 5.061 Required that the Comptroller prepare and electronically publish a Heir Property pamphlet that provides information to assist heir property owners in the application for a homestead authorized by the legislation. No single pamphlet has ever been made available rather information about heir property is a small section within the guide shown on the following page which is only available online. Is this adequate or what was intended? Lacking an official document that consistently defines heir property and how to apply, we have had to develop one in order to properly communicate the information to affected individuals. If standard forms and pamphlets are preferred by the Legislature, please communicate this to the Comptroller.

The Honorable Dustin Burrows, Chairman November 9, 2020 Page 2

SB 1943 Section 5.061 Heir Property (continued)

HB 3384 Section 5.102 Limited scope review was permitted by this legislation but does not address CAD Review whether it pertains to a health related disaster (COVID) or physical disaster. Clarification would be beneficial (see HB 492 below). Although one would not expect a health related disaster to have an impact on property values, COVID seriously undermined Equalization of the Texas tax calendar in 2020 and CADs’ ability to fulfill their responsibilities.

HB 492 Section 11.35 Made disaster reappraisal automatic in the form of a temporary exemption Temporary under Section 11.35 of the Tax Code but did not address economic disasters Exemption for such as occurred with COVID 19. Due to the economic impact, Chairman Disaster Bettencourt filed AG Opinion Request which resulted in KP 0299. Further clarification of legislative intent would be beneficial.

Also, currently law provides that if a government had already adopted a tax rate it would have to adopt the temporary exemption. This is truly not a uniform application of the exemption as it affects property owners. For instance, the Governor issued a disaster proclamation for Tropical Storm Beta September 21. Of GCTO’s 36 government partners, only seven adopted the 2020 rate on or after September 21st. For a property owner affected by flooding in the City of Dickinson, the city had not adopted a tax rate thus the exemption is automatic. Although I was able to secure adoption by Galveston County and Road and Flood, the school district, water district and community college have failed to meet the timeline established in this section of the Code thus the disaster exemption is not available except with regard to city and county taxes. This has the effect of minimizing the benefit intended by passage of the Constitutional Amendment which received overwhelming (85%) support from voters.

Is this uniform taxation or would property owners harmed by a disaster be better served by the exemption being automatic for all governments regardless of whether their rate had been adopted or not. See also comments pertaining to Section 11.43(s) below. The Honorable Dustin Burrows, Chairman November 9, 2020 Page 3

HB 492 Section 11.43(s) Although this paragraph was in the bill, it was omitted from printed Tax Codes and is also not found within the Texas Legislature Online statutes but its significance is critical as this section further complicates and minimizes the exemption as it establishes two deadlines – a 105 day deadline for automatic exemption availability and a shorter 45 day deadline when it is adopted by a local government.

Therefore, in Dickinson, city property owners damaged must apply by December 17th for the County portion but have until January 4th for the city exemption. If any other entities adopt, they will also have a different deadline. If taxation must be uniform, shouldn’t also the application of law for exemptions be uniform?

HB 1313 Section 23 Further changes to Statute are needed to prevent increases every year that Appraisals have eroded efforts by the legislature through the years to reduce taxes Generally (through an increased homestead exemption in prior sessions and both rate compression and spending limits without voter approval in the 86th).

Section II. Intended legislative outcomes of SB 2

As one of 22 Texas counties that was required to fully implement SB 2 during the 2020 tax year, we faced many challenges and believe the input below will specifically address the challenges faced so that minor revisions can be made during the 87th Session that could improve the process moving forward. None of these is believed to be controversial or would create opposition among interested parties.

Section 5.01 Property Tax Created board appointed by Comptroller under Section 5.01. The House, Administration Advisory Senate and Governor should also have appointees on this board. It was not Board formed timely, did not have representation that included an advocate for property owners and did not accomplish that which was hoped for (including but not limited to standards for appraisal districts and timely production of forms for TNT).

Section 5.05 Appraisal Not completed. No such manuals exist. Standards are necessary to ensure Manuals and Other consistency among counties. Perhaps a deadline needs to be established in Materials order to ensure performance.

The 2020 tax year was complicated by the fact that the Comptroller was not REQUIRED to produce the forms utilized until 2021 but those of us in local government rely on the Comptroller to properly interpret legislation. Once they were finally produced, updates were made later (late August on the Chapter 313 school district forms) and that resulted in the need for recalculation and revision of certified worksheets. It is, therefore, essential that 2021 electronic forms be available no later than July 1, 2021 if assessors are to meet the deadlines established by SB 2 with regard to proposed rates, particularly in the event a local government exceeds established rate limits and must timely call an election. Another option would be for the Comptroller to put the forms online for review at least two months in advance so we can review and comment before finalizing and release. The Honorable Dustin Burrows, Chairman November 9, 2020 Page 4

Section 26.04(b) At Section 26.01 the chief appraiser submits the appraisal roll to the assessor Submission of Roll to for each taxing unit. In actuality, it is also submitted to the taxing units at Governing Body the same time. In the referenced section, the assessor is required to submit the information to the governing bodies. It would be more practical for the chief appraiser to submit it to both and the law to so state that and remove the requirement for the assessor to also provide it. After all, the appraisal roll is certified by the chief appraiser – not the assessor. This has been in statute this way for many years and a revision would remove this duplication of effort.

Section 26.04(e-2) The August 7th date for the chief appraiser to deliver notices of the estimated amount of taxes is premature as rates have been calculated and provided to governments but not yet proposed thus property owners are lead to a site to determine their anticipated tax liability and numbers are not there. Changing this date to August 15th along with requiring local governments to propose a rate along the same timeline would ensure the database is populated with information useful to property owners when they receive the notice. The current timeline created a great deal of confusion and frustration for property owners.

Additionally, under (e-2)(2) it is more logical for a property owner to obtain this information from a centralized source (county appraisal districts) as they have this information while county tax assessor collectors do not.

Section 26.05(a) Tax Rate The Election Code requires calling an election no less than 78 days before the uniform election date thus the 71st day referenced in this section needs to be revised to conform to the Election Code.

Section 26.063 Alternative This section should not apply to any taxing unit unless it is adopting the de Provisions for Tax Rate minimis rate as it provides unnecessary information and causes confusion. Notice when De Minimis Rate Exceeds Voter Approval Tax Rate

Sections 26.16(d-1)(2) Sections 26.16 and 26.17 should be reviewed and considered together. Posting of Tax Related Information on County’s In 26.16, the county tax assessor collector is posting names and contact Internet Website information of government officials for all taxing units in the county on the county website. A more appropriate location for this is along with the tax data required to be posted on the county appraisal district websites (see Section 26.17). In the interest of transparency, as much information as can be published in one location would be more beneficial for property owners seeking information. Please see Exhibit A for the GCTO website TNT page. What can easily be seen in this Exhibit is that without authority to force a taxing unit to provide this information, much of the information was never published.

The Honorable Dustin Burrows, Chairman November 9, 2020 Page 5

Section 26.17 Database of In reality, in Harris and Galveston County, the county tax office was Property Tax Related required to post this information into the county appraisal district Information databases. We complied as I fully support the transparency and information being made available to property owners but it greatly increased the workload during a period in time when we were already stretched performing calculations, assisting government partners and publishing timely tax rate notices. Please see Exhibit B for the Galveston CAD database.

As mentioned at the beginning of the discussion regarding Section 26.16, when seen side-by-side, I pray the Committee can see the benefit of a centralized location for the information. Since county appraisal districts serve all governments in a county and tax offices do not, it would be logical for it to continue to house the database, along with the contact information of all elected officials.

Section 41.45 Hearing on COVID presented never before considered challenges for county appraisal Protest districts and Texas property owners. In addition to requiring informal in person conferences in advance of a formal protest with an ARB, the public should specifically be provided the right to protest in person. This was only achieved in 2020 thanks to an Attorney General Opinion (KP-0307 included as Exhibit C).

There was no legislation passed in the 86th Session regarding an additional change that I believe should be considered by the Committee regarding “truth in taxation” (TNT) but it is offered for your consideration. All values that generate revenue should be included in the calculations or, if they are not, the revenue that will be levied should be disclosed.

One of the most substantial deductions from TNT calculations is the limitation provided by Section 11.26 for school districts and 11.261 for counties, cities and junior college districts. More commonly referred to as tax ceilings or tax freeze, these values and revenues are deducted from all calculations due to the definitions of “current total value” [at 26.012(6)(A)(i) and 26.012(6)(B)], “last year’s levy” [at 26.012(13)(A)(ii)] and “last year’s total value” [at 26.012(14)(A) and 26.012(14)(B)].

Using Galveston Island governments to demonstrate the impact, please see below. Since tax ceiling value is deducted (but levied and collected), there are often millions of dollars that are never reported. The Texas Comptroller requires that these values and levies be reported by CADs each year by cities and counties; thus could report to the Committee the statewide total “hidden” levy. See Comptroller Forms 50-255 (Line 7) and 50-250 (Line 10) both of which are included as Exhibit D.

2019 Taxable 2020 Taxable 2020 Levy of Frozen Taxing Unit Value of Ceilings Value of Ceilings Accounts Galveston County $2,669,820,348 $3,009,018,983 $12,798,536 City of Galveston $ 736,016,463 $ 818,818,058 $ 3,574,846 Galveston ISD $749,674,630 $ 853,611,715 $ 7,000,956

The Honorable Dustin Burrows, Chairman November 9, 2020 Page 6

These revenues were so substantial for two of our partner cities that they opted to include a statement on the public hearing notice this year regarding the revenues (included as Exhibit E) in the interest of transparency.

In summary, either ending the practice of deducting tax ceiling value or requiring disclosure of the anticipated revenues would close the final gap in the real truth of taxation.

Thank you for serving the citizens of Texas so well. I look forward to working with you in the 87th Session and am always available to assist or answer questions.

Respectfully,

Cheryl E. Johnson, PCC

Attachments

Exhibit A GCTO Truth in Taxation Website Exhibit B GCAD Truth in Taxation Database (example is Johnson property; input at FISD) Exhibit C Attorney General Opinion KP 0307 Exhibit D Comptroller Forms 50-255 & 50-250 Exhibit E Cities of Friendswood and League City Public Hearing Notices EXHIBIT A

EXHIBIT B

May 8, 2020

The Honorable Mayes Middleton Co-Chair, Joint Interim Committee to Study a Coastal Barrier System Texas House of Representatives Post Office Box 2910 Austin, Texas 78768-2910

Opinion No. KP-0307

Re: Procedures for conducting appraisal review board hearings during the COVID-19 disaster (RQ-0351-KP)

Dear Representative Middleton:

You ask multiple questions about the appraisal review procedures available for property owners to protest changes in an appraisal record that adversely impact the property owner.1 You question whether under the current public health emergency, property owners will “be afforded true due process and not be dissuaded from availing themselves of their statutory and Constitutional right to protest an action that increases their tax liability.” Request Letter at 1. You therefore seek advice about potential modifications to the appraisal review procedures during the COVID-19 disaster. See id. at 1–4.

You first ask whether subsection 41.45(o) of the Tax Code and subsection 9.805(d) in title 34 of the Administrative Code authorize appraisal review boards to conduct protest hearings by videoconference in lieu of in-person hearings when a property owner requests an in-person hearing.2 Id. at 3. Subsection 41.45(b) of the Tax Code entitles “[a] property owner initiating a protest . . . to appear [before the appraisal review board] to offer evidence or argument.” TEX. TAX CODE § 41.45(b). When the property owner files a notice of protest, the appraisal review board “shall schedule” the hearing. Id. § 41.45(a). If the property owner does not wish to personally appear, the property owner “may offer evidence or argument by affidavit,” and he may also offer

1See Letter from Honorable Mayes Middleton, Co-Chair, House Joint Interim Comm. to Study a Coastal Barrier Sys., to Honorable Ken Paxton, Tex. Att’y Gen. at 3–4 (Apr. 7, 2020), https://www2.texasattorneygeneral. gov/opinions/opinions/51paxton/rq/2020/pdf/RQ0351KP.pdf (“Request Letter”). 2You explain that most appraisal districts provide an opportunity for an informal process where a property owner and appraiser resolve disputes by agreement before reaching the protest hearing stage. See id. at 2; see also TEX. TAX CODE § 41.47(f). We do not read your question to ask about specific technology that appraisers may or may not use during this initial process, prior to a formal protest hearing under section 41.45 of the Tax Code.

The Honorable Mayes Middleton - Page 2

argument through an appearance “by telephone call.” Id. § 41.45(b). Appraisal review boards must hold a hearing by telephone if the property owner either requests to appear by telephone or agrees to the board’s proposal to hold the hearing in that manner. Id. § 41.45(b-1)(1)–(2). But even if the property owner submits an affidavit to the board or chooses to appear by telephone conference call, “[a] property owner does not waive the right to appear in person at a protest hearing.” Id. § 41.45(n). The statute provides no other alternative methods for conducting a hearing if a property owner insists on an in-person hearing.3

Your question implies that the “in person” requirement might be met by holding a hearing by videoconference, which allows the property owner to view the appraisal review board and be viewed by its members. However, the common understanding of the phrase “in person” is “involving someone’s physical presence rather than communication by phone or email.”4 See Jaster v. Comet II Const., Inc., 438 S.W.3d 556, 563 (Tex. 2014) (explaining that courts give undefined terms their common, ordinary meaning, as determined by dictionary definitions and other sources). Thus, a court is unlikely to conclude that an appearance by videoconference satisfies a requirement that a property owner appear “in person” when the property owner requests to do so.

Subsection 41.45(o), which you suggest may allow for videoconferencing, manifests the intent to ensure fairness at a protest hearing but does not reference any ability to teleconference or videoconference, nor does it waive the right to an in-person appearance by the property owner. See id. § 41.45(o); see also Request Letter at 3. It provides:

If the chief appraiser uses audiovisual equipment at a hearing on a protest, the appraisal office shall provide audiovisual equipment of the same general type, kind, and character, as prescribed by comptroller rule, for use during the hearing by the property owner or the property owner’s agent.

TEX. TAX CODE § 41.45(o). When this provision was added in 2015, the bill analysis explained that “chief appraisers often use audiovisual presentations to display evidence during a protest hearing” and that the bill required “an appraisal office to provide taxpayers with audiovisual

3Subsection 5.103(a) of the Tax Code requires the Comptroller to “prepare model hearing procedures for appraisal review boards,” which subsection 5.103(d) requires appraisal review boards to follow when they establish their hearing procedures. TEX. TAX CODE § 5.103(a), (d). The Comptroller’s model hearing procedures must address, among other things, the process for conducting a hearing, the notices required, a party’s right to offer evidence and argument, and “any other matter related to fair and efficient appraisal review board hearings.” Id. § 5.103(b). The Comptroller issues this information for appraisal review boards through an appraisal review board manual, available here: https://comptroller.texas.gov/taxes/property-tax/docs/96-308.pdf. See also id. § 5.06 (requiring the Comptroller to prepare and electronically publish a pamphlet for taxpayers explaining protest procedures). 4“In person” is commonly defined as “meeting with someone rather than talking on the phone, e-mailing, or writing the person.” CAMBRIDGE DICTIONARY ONLINE, https://dictionary.cambridge.org/us/dictionary/english/in-person; see also MACMILLAN DICTIONARY ONLINE, https://www macmillandictionary.com/us/dictionary/american/do-something-in-person (defining the phrase “do something in person” as “to do something by going to a place or person rather than by writing, telephoning, or sending someone else”). The Honorable Mayes Middleton - Page 3

equipment comparable to the equipment used by the chief appraiser at the protest hearing.”5 The related administrative provision in title 34, subsection 9.805(d) of the Administrative Code details certain standards for the equipment. It must be “capable of reading and accepting” file formats, which include PDFs, Word, PowerPoint, Excel, and JPEG documents, and devices, such as USB flash drives and compact discs. 34 TEX. ADMIN. CODE § 9.805(c)–(d). The rule also provides that if the equipment requires an internet connection, the parties must supply their own. Id. § 9.805(d). Subsection 41.45(o) of the Tax Code and title 34, subsection 9.805(d) of the Texas Administrative Code do not address conducting a hearing by videoconference and therefore do not provide appraisal review boards with authority to require protest hearings be conducted by videoconference when a property owner requests an in-person hearing.6

Your third question asks whether limiting protests to certain methods affects due process. See Request Letter at 3. “The rule of due process requires notice of an increase in property value to the taxpayer with an opportunity to be heard before its property may be encumbered by an additional tax lien.” Harris Cty. Appraisal Review Bd. v. Gen. Elec. Corp., 819 S.W.2d 915, 920 (Tex. App.—Houston [14th Dist.] 1991, writ denied). If a property owner is denied a hearing to which the property owner is entitled, the property owner has a statutory right to “bring suit against the appraisal review board by filing a petition or application in district court to compel the board to provide the hearing.” TEX. TAX CODE § 41.45(f). Thus, to the extent an appraisal review board limits protest procedures to some method that eliminates the right to appear in person, such action could be grounds for a lawsuit pursuant to subsection 41.45(f).7

You also ask whether an appraisal district meets the notice requirements of the Tax Code “if the protest procedure is listed on the [appraisal district] website, but not mailed to each property owner, or e-mailed to property owners who have personally opted into e-mail notices.” Request Letter at 4.

The Tax Code requires a chief appraiser to publish information concerning protest procedures in different ways. For example, a chief appraiser must annually publish information about a property owner’s right to protest, including the method to protest. TEX. TAX CODE § 41.41(b). Publishing this information on an appraisal district’s website could satisfy the notice requirement under section 41.41, if the notice is “publicize[d] in a manner reasonably designed to notify all residents” of their rights. See id. A chief appraiser must also annually publish notice of the appraisal district’s protest and appeal procedures. Id. § 41.70(a). This notice must be published between May 1 and May 15 in a newspaper of general circulation within the county in which the appraisal district is established. Id. § 41.70(a), (b). Thus, publishing the notice required by section

5See Senate Research Comm., Bill Analysis, Tex. S.B. 1394, 84th Leg., R.S. (2015), https://capitol.texas.gov/ tlodocs/84R/analysis/pdf/SB01394F.pdf#navpanes=0. 6Because your second question is premised on the assumption that subsection 41.45(o) authorizes appraisal review boards to limit their hearings to videoconferencing, we do not address it. See Request Letter at 3. 7Your next two questions assume that an appraisal review board may require appraisal review hearings to be conducted by videoconference in lieu of in person hearings. See Request Letter at 3. Given our conclusion that appraisal review boards may not limit those hearings to videoconference appearances by the property owner, we do not address these questions. The Honorable Mayes Middleton - Page 4

41.70 only on an appraisal district’s website would not be sufficient notice under the Tax Code, which requires publication in an appropriate newspaper.

A chief appraiser must also provide notice of the protest hearing procedures to property owners initiating a protest. Id. § 41.461(a)(3) (“At least 14 days before a hearing on a protest, the chief appraiser shall . . . deliver a copy of the hearing procedures established by the appraisal review board under Section 41.66 to the property owner.”). Unless a specific notice provision provides otherwise or the parties have agreed to a specified alternative form of notice, an official or agency required by the Property Tax Code “to deliver a notice to a property owner may deliver the notice by regular first-class mail, with postage prepaid.” Id. § 1.07(a). The Tax Code provides no alternative method to deliver a copy of the hearing procedures established by the appraisal review board.8 Furthermore, merely listing the protest procedures on the appraisal district website is insufficient to satisfy the requirement that the chief appraiser “deliver a copy” to the protesting property owner. Id. § 41.461(a)(3). The term “deliver” is commonly understood to mean “to send (something aimed or guided) to an intended target or destination.” WEBSTER’S THIRD NEW INTERNATIONAL DICTIONARY 597 (2002). Posting procedures on a website does not identify a specific recipient or attempt to ensure that the recipient will receive the necessary information. Thus, posting the notice requirements only on the appraisal district website does not satisfy the notice requirements in subsection 41.461(a)(3).

Your final question refers us to section 41.11(c) of the Tax Code and asks whether all appraisal increases would be nullified by the failure to satisfy any one of the statutory notice requirements. See Request Letter at 4. Section 41.12 of the Tax Code requires an appraisal review board, by July 20, to: “(1) hear and determine all or substantially all timely filed protests; (2) determine all timely filed challenges; (3) submit a list of its approved changes in the records to the chief appraiser; and (4) approve the records.” TEX. TAX CODE § 41.12(a). Under subsection 41.11(a), “[n]ot later than the date the appraisal board approves the appraisal records as provided by subsection 41.12,” the board must “deliver written notice to a property owner of any change in the records that is ordered by the board . . . and that will result in an increase in the tax liability of the property owner.” Id. § 41.11(a). Subsection 41.11(c) provides that the board’s failure “to deliver notice to a property owner as required by [section 41.11] nullifies the change in the records to the extent the change is applicable to that property owner.” Id. § 41.11(c).

The Tax Code requires chief appraisers and appraisal review boards to provide notice to property owners at various stages of the appraisal, review, and protest processes. See, e.g., id. §§ 25.19(a) (requiring the chief appraiser to deliver “written notice to a property owner of the appraised value of the property owner’s property if . . . the appraised value of the property is greater than it was in the preceding year,” or other specified circumstances); 41.461(a)(c) (requiring the

8A separate subsection of 41.461 requires chief appraisers to notify property owners that they are “entitled on request to a copy of the data, schedules, formulas, and all other information the chief appraiser will introduce at the hearing to establish any matter at issue.” TEX. TAX CODE § 41.461(a)(2). If a property owner requests such information, the chief appraiser may, among other options, refer the property owners to “a secure Internet website . . . maintained by the appraisal district on which the requested information is identifiable and readily available,” if the chief appraiser meets certain requirements. Id. § 41.461(c)(3), (d). However, this authorization to refer property owners to a website is limited to the information required by subsection (a)(2) and does not include “the hearing procedures established by the appraisal review board” required separately under subsection (a)(3). Id. § 41.461(a)(3), (c). The Honorable Mayes Middleton - Page 5

chief appraiser to send a property owner a copy of the hearing procedures established by the appraisal review board at least fourteen days before a protest hearing). However, by its express terms, the nullification of changes in the record provided by subsection 41.11(c) occurs only when an appraisal review board fails to provide the notice specifically required by that section. Id. § 41.11(c) (referring to “[f]ailure to deliver notice to a property owner as required by this section . . . .” (emphasis added)). Property owners possess alternative remedies if an appraisal review board fails to provide the other notices required by the Tax Code. See, e.g., id. § 41.411 (“A property owner is entitled to protest before the appraisal review board the failure of the chief appraiser or the appraisal review board to provide or deliver any notice to which the property owner is entitled.” (emphasis added)). The Honorable Mayes Middleton - Page 6

S UMMARY

Subsection 41.41(a) of the Tax Code entitles a property owner to protest the determination of the appraised value of the owner’s property, in addition to other adverse determinations made by a chief appraiser. Subsection 45.45(n) of the Tax Code gives property owners a right to appear in person at a protest hearing. Subsection 41.45(o) of the Tax Code and title 34, subsection 9.805(d) of the Texas Administrative Code do not allow appraisal review boards to require protest hearings be conducted by videoconference in lieu of in-person hearings when requested by a property owner.

Subsection 41.461(a)(3) of the Tax Code requires a chief appraiser to deliver a copy of the protest hearing procedures to property owners initiating a protest. The appraisal district does not satisfy this requirement by only posting the protest procedures on the appraisal district website.

Subsection 41.12(a) of the Tax Code requires an appraisal review board, among other things, to approve the appraisal records by July 20. No later than the date it does so, the board must also deliver written notice to a property owner of any change in the records ordered by the board pursuant to subsection 41.11(a) that will result in an increase in the tax liability of the property owner. The board’s failure to deliver notice to a property owner required by section 41.11 nullifies the change in the records to the extent the change is applicable to that property owner. However, the nullification is limited to that subsection and does not apply to all failures to give notice required by the Property Tax Code.

Very truly yours,

KE N P AXT ON Attorney General of Texas

JEFFREY C. MATEER First Assistant Attorney General

RYAN L. BANGERT Deputy First Assistant Attorney General The Honorable Mayes Middleton - Page 7

RYAN M. VASSAR Deputy Attorney General for Legal Counsel

VIRGINIA K. HOELSCHER Chair, Opinion Committee City Report of Property Value Form 50-255 Short Form

______City Name City Six-Digit Number Taxing Unit Classification Number

______Appraisal District Name Appraisal District Number County Name County Number

GENERAL INFORMATION: The purpose of this report is to gather information that is not included with the Comptroller’s annual Electronic Appraisal Roll Submission. This form or the PVS Tax Rate Submission Spreadsheet should be submitted as soon as new tax rates are adopted. FILING INSTRUCTIONS: When providing a copy of the certified annual appraisal roll to the Comptroller’s office pursuant to the Electronic Appraisal Roll Submission Record Layout and Instructions Manual, this form or the PVS Tax Rate Submission Spreadsheet and all supporting documentation is to be completed and submitted to the Property Tax Assistance Division’s (PTAD) Data Analysis Team (DAT) either by email at [email protected] or by mail at P.O. Box 13528, Austin, Texas 78711-3528. If you have questions, call PTAD at 800-252-9121 (press 2 and ask for DAT). SECTION 1: Property Value Study Year

Property value study year for which this report is being submitted: ______SECTION 2: Tax Rate Information and Exemptions

1. No-New-Revenue Tax Rate, as defined by Tax Code Section 26.04(c)(1) ......

2. Voter-Approval Tax Rate, as defined by Tax Code Section 26.04(c)(2) ......

3. City tax rate (Maintenance and Operations Rate + Interest and Sinking Fund Rate = Total Tax Rate): Total Tax Rate: Maintenance & Interest & Sinking Operations Tax Rate: + Fund Tax Rate: =

4. LOCAL OPTIONAL PERCENTAGE HOMESTEAD EXEMPTION GRANTED ......  Yes  No If yes, percentage granted ______%

5. TOTAL PROJECTED PAYMENTS INTO TAX INCREMENT FINANCING FUND(S) (Tax Code Section 311.013) a) Report the total projected payments for each tax increment financing fund in which your city participates. Include a computer generated recap to verify the payment amount...... $

b) Enter the number of tax increment financing zones in which your city participates ......

6. Last year’s actual levy lost to deferred collection of taxes on residence homesteads of elderly or disabled persons and/or appreciating residence homesteads (Tax Code Sections 33.06 and 33.065). Include a listing by account of last year’s actual levy lost that does not include penalties and interest...... $

7. Total value lost due to the age 65 or older or disabled ceiling (Tax Code Section 11.261). Include a computer generated recap or a listing by account which includes the market and taxable value, state and local exemptions and the actual levy for the frozen accounts...... $ SECTION 3: Contact

______Official Authorized by City Date

______Title Email Address Phone (area code and number)

Form developed by: Texas Comptroller of Public Accounts, Property Tax Assistance Division For additional copies, visit: comptroller.texas.gov/taxes/property-tax 50-255 • 08-20/33 County Report of Property Value Form 50-250 Short Form

______County Name County Six-Digit Number Taxing Unit Classification

______Appraisal District Number

Property value study year for which this report is being submitted: ______SECTION 2: Tax Rate Information and Exemptions

1. No-New-Revenue Tax Rate, as defined by Tax Code Section 26.04(c)(1) ......

2. Voter-Approval Tax Rate, as defined by Tax Code Section 26.04(c)(2) ......

3. County tax rate for General Fund: Total Tax Rate: Maintenance & Interest & Sinking Operations Tax Rate: + Fund Tax Rate: =

4. County tax rate for Special Road & Bridge Fund: Total Tax Rate: Maintenance & Interest & Sinking Operations Tax Rate: + Fund Tax Rate: =

5. County tax rate for Farm-to-Market/Flood Control Fund: Total Tax Rate: Maintenance & Interest & Sinking Operations Tax Rate: + Fund Tax Rate: =

Total Tax Rate: 6. Total county tax rate ...... 7. LOCAL OPTION PERCENTAGE HOMESTEAD EXEMPTION GRANTED......  Yes  No If yes, percentage granted ______%

8. TOTAL PROJECTED PAYMENTS INTO TAX INCREMENT FINANCING FUND(S) (Tax Code Section 311.013) a) Report the total projected payments for each tax increment financing fund in which your county participates. Include a computer generated recap to verify the payment amount...... $

b) Enter the number of tax increment financing zones in which you participate ......

9. Last year’s actual levy lost to tax deferred collection of taxes on residence homesteads of elderly or disabled persons and/or appreciating residence homesteads (Tax Code Sections 33.06 and 33.065). Include a listing by account of last year’s actual levy lost that does not include penalties and interest ...... $

10. Total value lost due to the age 65 or older or disabled ceiling (Tax Code Section 11.261). Include a computer generated recap or a listing by account which include the market and taxable value, state and local exemptions and the actual levy for the frozen accounts...... $ SECTION 3: Contact

______Official Authorized by County Date

______Title Email address Phone (area code and number)

Form developed by: Texas Comptroller of Public Accounts, Property Tax Assistance Division For additional copies, visit: comptroller.texas.gov/taxes/property-tax 50-250 • 07-20/32 NOTICE OF PUBLIC HEARING ON TAX INCREASE

PROPOSED TAX RATE $0.497314 per $100 NO-NEW-REVENUE TAX RATE $0.487314 per $100 VOTER-APPROVAL TAX RATE $0.532452 per $100

The no-new-revenue tax rate is the tax rate for the 2020 tax year that will raise the same amount of property tax revenue for City of Friendswood from the same properties in both the 2019 tax year and the 2020 tax year. The voter-approval tax rate is the highest tax rate that the City of Friendswood may adopt without holding an election to seek voter approval of the rate.

The proposed tax rate is greater than the no-new-revenue tax rate. This means that the City of Friendswood is proposing to increase property taxes for the 2020 tax year.

A public hearing on the proposed tax rate will be held on September 14, 2020, at 7:00 pm at 910 S. Friendswood Drive, Friendswood, Texas 77546.

The proposed tax rate is not greater than the voter-approval tax rate. As a result, the City of Friendswood is not required to hold an election at which voters may accept or reject the proposed tax rate. However, you may express your support for or opposition to the proposed tax rate by contacting the members of the City Council of the City of Friendswood at their offices or by attending the public hearing mentioned above.

Your taxes owed under any of the tax rates mentioned above can be calculated as follows:

Property tax amount = tax rate x taxable value of your property/$100

The members of City Council voted on the proposed tax increase as follows:

FOR: Mayor Mike Foreman Council Member Steve Rockey Council Member Sally Branson Council Member Trish Hanks Council Member Robert J. Griffon Council Member Brent Erenwert

AGAINST: Council Member John Scott

The 86th Texas Legislature modified the manner in which the voter-approval tax rate is calculated to limit the rate of growth of property taxes in the state.

The following table compares the taxes imposed on the average residence homestead by the City of Friendswood last year to the taxes proposed on the average residence homestead by the City of Friendswood this year:

2019 2020 Change Total Tax Rate (per $100 of value) $0.521439 $0.497314 Decrease of $0.024125 OR -4.63% Average homestead taxable value $278,990 $298,730 Increase of 7.07% Tax on average homestead $1,454.76 $1,485.63 Increase of $31 OR 2.12% Total tax levy on all properties $15,898,906 $16,413,328 Increase of $514,422 OR 3.23% * Total levy excludes properties with freeze ceilings of approximately $2.8 million each year.

For assistance with tax calculations, please contact the tax assessor for City of Friendswood at 409-766-2260 or [email protected], or visit www.galcotax.com for more information.

NOTICE OF MEETING TO VOTE ON TAX RATE

PROPOSED TAX RATE $0.515000 per $100 NO-NEW-REVENUE TAX RATE $0.515708 per $100 VOTER-APPROVAL TAX RATE $0.528398 per $100

The no-new-revenue tax rate is the tax rate for the 2020 tax year that will raise the same amount of property tax revenue for League City from the same properties in both the 2019 tax year and the 2020 tax year.

The voter-approval tax rate is the highest tax rate that League City may adopt without holding an election to seek voter approval of the rate.

The proposed tax rate is not greater than the no-new-revenue tax rate. This means that League City is not proposing to increase property taxes for the 2020 tax year.

A public meeting to vote on the proposed tax rate will be held on September 8, 2020, at 6:00 PM at Council Chambers, 200 West Walker, League City, Texas.

The proposed tax rate is also not greater than the voter-approval tax rate. As a result, League City is not required to hold an election to seek voter approval of the rate. However, you may express your support for or opposition to the proposed tax rate by contacting the members of City Council of League City at their offices or by attending the public meeting mentioned above.

Your taxes owed under any of the above rates can be calculated as follows:

Property tax amount = tax rate x taxable value of your property/$100

The members of the governing body voted on the proposed tax rate as follows:

FOR: Mayor Pat Hallisey Mayor Pro Tem Todd Kinsey Andy Mann Hank Dugie Larry Millican Greg Gripon Chad Tressler Nick Long

The 86th Texas Legislature modified the manner in which the voter-approval tax rate is calculated to limit the rate of growth of property taxes in the state.

The following table compares the taxes imposed on the average residence homestead by League City last year to the taxes proposed to be imposed on the average residence homestead by League City this year:

2019 2020 Change Total Tax Rate (per $100 of value) $0.548581 $0.515000 Decrease of $0.033581 or -6.21% Average Homestead Taxable Value $213,583 $223,054 Increase of 4.43% Tax on Average Homestead $1,172 $1,149 Decrease of $23 or -1.95% Total tax levy on all properties $42,726,607 $39,777,352 Decrease of $2,949,255 or -6.9%

* 2019 Estimated tax levy is $47.85 million which includes tax on properties with tax freeze ceilings and TIRZ properties

*2020 Estimated tax levy is $48.78 million which includes $4.7 million on properties with tax freeze ceilings and $4.3 million from TIRZ properties.

For assistance with tax calculations, please contact the tax assessor for League City (409) 766-2260 or [email protected] or visit www.galcotax.com for more information.