What effect does the Texas Legislature have on the Texas real estate market?

Posted on April 15, 2009
Filed Under Fredericksburg Texas Real Estate News |

By Greg Oehler

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Creative Commons License photo credit: jas kaur

I visited the state capitol in Austin the last week in March to weigh in on several legislative matters that may affect you as it relates to real estate. Here are some of the issues teed up for the current session:

Appraisal Reform - Central Appraisal Districts were created in 1982 and their purpose is to assess market values which are used for property taxes. While many of these CADs are very good, some property owners perceive the process to be unfair and certainly not uniform across the CAD system in Texas. The Texas Association of Realtors (”TAR”) supports several reform bills which would do the following:

  1. conduct a methods and procedures audit of the CAD every other year.
  2. update and modernize the appraisal methods and oversight to ensure greater accountability and efficiency.
  3. ensure a state entity has enforcement authority over CADs to ensure that uniform standard appraisal practices are being used.
  4. require comparable sale evidence no older than 24 months be used and that it is appropriately adjusted for changes in the market value over time.
  5. allow CADs o consolidate appraisal review boards.
  6. allow for some appeals to be heard by the State Office of Administrative Hearings;
  7. allow for a residence to be appraised as a residence; not on the basis of the “highest and best use” appraisal standard.

County Rulemaking Authority - TAR does not support the wholesale expansion of county rulemaking authority, but may support limited expansion to alleviate certain specific problems if the citizens vote on a county-wide referendum to expand the County’s powers.

Eminent Domain - TAR supports certain bills which enhance private property rights protection when property is taken by governmental entities by eminent domain.

Green Power and Energy Efficiency - Texans pay 56% more per kilowatt hour than the national average. TAR supports several bills which provide for a franchise tax credit for solar energy devices, create Emissions Management Districts to fund renewable energy systems and energy efficiency improvements on property in the district, and creates incentives for the capture and sequestration of carbon dioxide and other greenhouse gases.

20080312-34 - Texas State Capitol
Creative Commons License photo credit: roland

Homeowner Associations - TAR supports bills that would reform and modernize regulation of homeowner associations to ensure protection of homeowner’s rights while maintaining a legal framework for efficient and effective management of associations.

Mandatory Sales-Price Disclosure - TAR opposes several bills which would require public disclosure of real estate sales prices.

Real Estate Transfer Tax - TAR is NOT in favor of a real estate transfer tax and supports several bills relating to the prohibition and/or disclosure of a fee associated with the transfer of real property.

Taxing Professional Services - TAR opposes efforts to expand the state sales-tax base to include professional services because it is likely to hinder economic recovery.

Transportation - TAR supports bills that prohibit diversions from gas tax revenue to non-transportation uses.

Many of these bills and proposed legislation will affect those of you who own real property. There were some 1600+/- Realtors in Austin who were introduced in the House and Senate galleries and who later visited senators and representatives of their districts in order to give them position statements. While writing and calling your representatives can definitely make a difference, it certainly makes a statement to personally hand your legislator a position paper, look him/her in the eyes and shake their hands in their own office. I trust that we have favorable influence on most of the key issues that may affect you and I certainly encourage you to make your own opinions known in Austin during the current legislative session.

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