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Travis Central Appraisal District Reappraisal Plan for Tax Years 2017

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Travis Central Appraisal District Reappraisal Plan for Tax Years 2017 TRAVIS CENTRAL APPRAISAL DISTRICT REAPPRAISAL PLAN FOR TAX YEARS 2017-2018 ADOPTED: August 29, 2016 Table of Contents Table of Contents ........................................................................................................................... 2 Notice ............................................................................................................................................... 4 Executive Summary ....................................................................................................................... 5 Texas Property Tax Code Requirements ....................................................................... 6 Reappraisal Activities ...................................................................................................... 8 Reappraisal Plan Development ..................................................................................... 10 Plan Review, Amendment and Alterations .................................................................. 11 Proposed Plan Scope of Responsibilities .............................................................................................................. 12 Revaluation Policy ....................................................................................................................... 13 Performance Analysis .................................................................................................................. 14 Analysis of Available Resources ................................................................................................. 14 Planning & Organization ............................................................................................................ 15 Mass Appraisal Systems .............................................................................................................. 15 Pilot Study .................................................................................................................................... 17 Data Collection ............................................................................................................................. 17 Identifying & Updating Property Characteristics .................................................................... 17 Market Area Delineation ............................................................................................................. 19 New Construction/Demolition ..................................................................................................... 19 Remodels ....................................................................................................................................... 19 Re-inspection Problematic Areas ............................................................................................... 19 Re-inspection of the Universe of Properties............................................................................... 19 Verification of Sales Data and Property Characteristics ......................................................... 20 Quality Control ............................................................................................................................ 20 Valuation Methods by Property Type ........................................................................................ 21 Residential Property Valuation .................................................................................................. 21 Commercial Property Valuation ................................................................................................ 29 Business Personal Property Valuation ....................................................................................... 39 Mass Appraisal Report ................................................................................................................ 47 Final Performance Analysis ........................................................................................................ 47 Limiting Conditions and Certification ....................................................................................... 49 2 | Page Appendix A ................................................................................................................................... 50 Appendix B ................................................................................................................................... 53 Appendix C ................................................................................................................................... 56 Appendix D ................................................................................................................................... 58 Appendix E ................................................................................................................................... 60 3 | Page As we progress into the actual reappraisal process, we reserve the right to modify the plan as required in order to meet the requirements for this office as set forth in the Texas Property Tax Code. 4 | Page EXECUTIVE SUMMARY Travis Central Appraisal District has prepared and published this reappraisal plan to provide the Board of Directors, taxing units, citizens and taxpayers with a better understanding of the District’s responsibilities and reappraisal activities. The Travis Central Appraisal District (TCAD) is a political subdivision of the State of Texas created on January 1, 1980. The provisions of the Texas Property Tax Code govern the legal, statutory, and administrative requirements of the appraisal district. A ten member Board of Directors constitute the TCAD governing body. Nine members are appointed by the Travis County jurisdictions TCAD serves. Two are appointed by Travis County, Austin Independent School District and the City of Austin. One member is appointed jointly by the City of Austin and The Austin Independent School District. One member each is appointed at large by the cities and school districts of Western and Eastern Travis County. The Travis County Assessor/Collector serves as a non-voting member. The Chief Appraiser, appointed by the Board of Directors, is the chief administrator and chief executive officer of the appraisal district. Appendix A contains a list of Board of Directors members, the jurisdictions represented, and their terms. Travis Central Appraisal District is responsible for local property tax appraisal and exemption administration for 123 jurisdictions or taxing units in the county. These jurisdictions are located in Appendix A. Each taxing unit sets its own tax rate to generate revenue to pay for services such as police and fire protection, public schools, road and street maintenance, recreational facilities, water and sewer systems, and other public services. Property appraisals are values established by the appraisal district and used by the taxing units to distribute the annual tax burden. Appraisals are based on each property’s market value. TCAD also administers and determines eligibility for various types of property tax exemptions that are authorized by state and local governments; such as homestead, over-65, disabled persons, disabled veterans, and charitable or religious exemptions. A reappraisal plan as required by the Texas Property Tax Code and summary of the reappraisal activities which respond to these requirements is included in this report. 5 | Page TEXAS PROPERTY TAX CODE REQUIREMENT Senate Bill 1652 passed during the 2005 Regular Legislative Session amending the Texas Property Tax Code to require a written biennial reappraisal plan. The Reappraisal Plan Section 6.05(i) of the Texas Property Tax Code, is as follows: (i) To ensure adherence with generally accepted appraisal practices, the board of directors of an appraisal district shall develop biennially a written plan for the periodic reappraisal of all property within the boundaries of the district according to the requirements of Section 25.18 and shall hold a public hearing to consider the proposed plan. Not later than the 10th day before the date of the hearing, the secretary of the board shall deliver to the presiding officer of the governing body of each taxing unit participating in the district a written notice of the date, time and place for the hearing. Not later than September 15 of each even-numbered year, the board shall complete its hearing, make any amendments, and by resolution finally approve the plan. Copies of the approved plan shall be distributed to the presiding officer of the governing body of each taxing unit participating in the district and to the comptroller within 60 days of the approved date. Section 25.18(a) and (b) of the Texas Property Tax Code, reads as follows: (a) Each appraisal office shall implement the plan for periodic reappraisal of property approved by the board of directors under §6.05 (i). (b) The plan shall provide for the following reappraisal activities for all real and personal property in the district at least once every three years: (1) Identifying properties to be appraised through physical inspection or by other reliable means of identification, including deeds or other legal documentation, aerial photographs, land-based photographs, surveys, maps, and property sketches; (2) Identifying and updating relevant characteristics of each property in the appraisal records; (3) Defining market areas in the district; (4) Identifying property characteristics that affect property value in each market area, including: (A) The location and market area of the property; (B) Physical attributes
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