Momentum - Business to Business Online Magazine September 2017 | Page 15

Taxing Matters Help After Harvey Properties in Texas are valued based on their January 1 value, even when they burn to the ground January 2 or fill with floodwaters in August. The Texas Tax Code Section 23.02 allows local governments to ask county appraisal districts (CADs) to conduct a reappraisal should a disaster be declared. As of August 28, Governor Abbott issued a disaster proclamation for 58 Texas Counties so this is an option that is available to your local governments that may help with our recovery. Cost of a reappraisal, if any, is shared by all governments voting to participate based on a per parcel cost. Values and taxes for affected properties within the participating governments will be adjusted appropriately (meaning your county taxes could be reduced but not the drainage district if the governing body decides not to take part in the reappraisal). How would it work? If the County, City of Dickinson, Dickinson ISD and Water Control Improvement District #1 voted to require Galveston CAD to perform a disaster reappraisal, a $100,000 home in Dickinson flooded during Harvey that sustained a 50% loss in value would benefit from a tax reduction of approximately $425. The taxes would then be prorated with the January through August portion being based on the January 1 value and the September through December portion based on the reduced value. Apply the savings to a $200,000 or $300,000 property and you can easily estimate the tax benefit. Best of all, disaster reappraisal would apply to ALL property types. Why wouldn’t a local government request reappraisal? There could be a reduction in revenue for it and there could be a cost associated with the reappraisal. Since CAD’s begin 2018 drive outs beginning in September, the cost should be minimal to determine both a today and January 1 value so the cost could be minimal. I was disappointed that, although several attempts were made during both the Regular and Special Sessi ons of the 85th Legislature to help property owners after a disaster, none made it into law. Both sides of the pink dome (SB 717 and HB 513 in the Regular and HB 331 in the Special) recognized that governments are resistant to reductions in By: Cheryl E. Johnson, PCC Galveston Co. Tax Assessor Collector [email protected] revenue and attempted to help Texas property owners by requiring automatic reappraisal of properties determined by FEMA as sustaining 5% or greater damage. Sadly, these bills were held hostage and became victims of disagreements between State leaders. Another important bill - SB 972 - passed out of the Senate during the Regular Session and nearly made it to the House for a vote. This bill would have allowed a property owner to request reappraisal if their home was completely destroyed by a casualty. Chief Appraisers and Tax Collectors came together in an attempt to see this law put into place but, sadly, the clock ran out on this bill as well. There is some light at the end of the tunnel when it comes to payment of taxes. Galveston County and its partner governments will be offering disaster installments for 2017 taxes. These are identical to the “quarter pay” option available for homesteads of those over 65, disabled persons, disabled vets and the surviving spouses of disabled vets in that payment may be made in four equal installments if the first one-fourth is paid by January 31. Over the years, your County Tax Office has worked with legislators to extend the quarter installment payments even if the January 31st deadline is missed if a 7% (penalty and interest) fee is paid along with the first one- fourth installment by the end of February. Disaster installments were included in that group during the Regular Legislative Session with the passage of SB 1047. One word of caution on quarter and split pay options, check with your mortgage company as some will not allow it! We will provide a letter explaining the payment program to any requesting property owner if this payment option would help you. i Angelina, Aransas, Atascosa, Austin, Bastrop, Bee, Bexar, Brazoria, Brazos, Burleson, Caldwell, Calhoun, Cameron, Chambers, Colorado, Comal, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Grimes, Guadalupe, Hardin, Harris, Jackson, Jasper, Jefferson, Jim Wells, Karnes, Kerr, Kleberg, Lavaca, Lee, Leon, Liberty, Live Oak, Madison, Matagorda, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Jacinto, San Patricio, Trinity, Tyler, Victoria, Walker, Waller, Washington, Wharton, Willacy and Wilson Counties MOMENTUM / September 2017 14